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Next to Production or to Technological Clusters? The Economics and Management of R&D Location

Author

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  • Mariani, Myriam

    (MERIT)

Abstract

This paper examines the relationship between the location of R&D and production activities. By using a sample of 799 Japanese investments in Europe, it distinguishes between affiliates performing only R&D, both R&D and production, and production only. The analysis produces two main results. First, R&D tends to locate near production activities. Interestingly, however, the higher the science-intensity of a sector, the less important is the linkage with production - i.e. the higher the number of only R&D labs. This is interpreted as the effect produced by more general and transferable scientific work, compared to applied work. Second, by performing a multinomial logit analysis, we show that R&D independent or linked to production are attracted by different local factors. Managerial and policy implications are also discussed.

Suggested Citation

  • Mariani, Myriam, 1999. "Next to Production or to Technological Clusters? The Economics and Management of R&D Location," Research Memorandum 027, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:umamer:1999027
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    Cited by:

    1. Pradhan, Jaya Prakash, 2011. "Regional heterogeneity and firms’ innovation: the role of regional factors in industrial R&D in India," MPRA Paper 28096, University Library of Munich, Germany.
    2. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    3. Julio M. Rosa & Pierre Mohnen, 2007. "Knowledge Transfers between Canadian Business Enterprises and Universities: Does Distance Matter?," Annals of Economics and Statistics, GENES, issue 87-88, pages 303-323.
    4. Ketokivi, Mikko, 2006. "When Does Co-location of Manufacturing and R&D Matter?," Discussion Papers 1051, The Research Institute of the Finnish Economy.
    5. Riccardo Crescenzi & Andrés Rodriguez-Pose & Michael Storper, 2007. "The territorial dynamics of innovation: a Europe-United States comparative analysis," Journal of Economic Geography, Oxford University Press, vol. 7(6), pages 673-709, November.
    6. Berghäll, Elina, 2008. "Revealing Agglomeration Economies with Stochastic Frontier Modelling in the Finnish ICT Industry," Discussion Papers 435, VATT Institute for Economic Research.
    7. Liu, Ju, 2015. "A Case Study on Multinational Companies’ Global Innovation Networks and Global Production Networks: Toward a Theoretical Conceptualisation," Papers in Innovation Studies 2015/45, Lund University, CIRCLE - Centre for Innovation Research.
    8. Liu, Ju & Chaminade, Cristina, 2014. "Exploring the interplay, differences, and commonalities between global production networks and global innovation networks of two multinational companies," Papers in Innovation Studies 2014/7, Lund University, CIRCLE - Centre for Innovation Research.
    9. Alvandi , Keyvan & Chaminade , Cristina & Lv, Ping, 2013. "Commonalities and differences between production-related FDI (PFDI) and technology-related FDI (TFDI) in developed and emerging economies," Papers in Innovation Studies 2013/47, Lund University, CIRCLE - Centre for Innovation Research.
    10. D'Costa, Anthony P., 2003. "Uneven and Combined Development: Understanding India's Software Exports," World Development, Elsevier, vol. 31(1), pages 211-226, January.
    11. Ashish Arora & Alfonso Gambardella, 2005. "The Globalization of the Software Industry: Perspectives and Opportunities for Developed and Developing Countries," NBER Chapters, in: Innovation Policy and the Economy, Volume 5, pages 1-32, National Bureau of Economic Research, Inc.
    12. Hyundo Choi & Luis Alfonso Dau & Elizabeth M. Moore, 2022. "Learning Through Firms’ Overseas Subsidiaries in the United States and China: Linking Host Country Environments into Technological Learning Outcome Types," Management International Review, Springer, vol. 62(6), pages 885-914, December.
    13. Lema, Rasmus & Quadros, Ruy & Schmitz, Hubert, 2012. "Shifts in Innovation Power to Brazil and India: Insights from the Auto and Software Industries," MPRA Paper 49591, University Library of Munich, Germany.
    14. Davide Castellani & Katiuscia Lavoratori, 2020. "The lab and the plant: Offshore R&D and co-location with production activities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(1), pages 121-137, February.
    15. Isabel Tecu, 2013. "The Location of Industrial Innovation: Does Manufacturing Matter?," Working Papers 13-09, Center for Economic Studies, U.S. Census Bureau.
    16. Lema, Rasmus, 2010. "Adoption of Open Business Models in the West and Innovation in India's Software Industry," MPRA Paper 49589, University Library of Munich, Germany.
    17. Riccardo Crescenzi & A. Rodriguez-Pose & Michael Storper, 2007. "The geographical processes behind innovation: a Europe-United States comparative analysis," Departmental Working Papers of Economics - University 'Roma Tre' 0081, Department of Economics - University Roma Tre.
    18. repec:bla:jomstd:v:47:y:2010:i:s2:p:1534-1560 is not listed on IDEAS
    19. Chaminade , Cristina & Plechero , Monica, 2015. "The role of geographical proximity in the international knowledge flows of European firms: an overview of different knowledge transfer mechanisms," Papers in Innovation Studies 2015/30, Lund University, CIRCLE - Centre for Innovation Research.
    20. Juan Alcacer & Mercedes Delgado, 2012. "Spatial Organization of Firms: Internal and External Agglomeration Economies and Location Choices Through the Value Chain," Working Papers 12-33, Center for Economic Studies, U.S. Census Bureau.
    21. Annekatrin Niebuhr & Jan Cornelius Peters & Alex Schmidke, 2020. "Spatial sorting of innovative firms and heterogeneous effects of agglomeration on innovation in Germany," The Journal of Technology Transfer, Springer, vol. 45(5), pages 1343-1375, October.
    22. Davide Castellani & Katiuscia Lavoratori, 2017. "Location of R&D abroad. An analysis on Global Cities," John H Dunning Centre for International Business Discussion Papers jhd-dp2017-03, Henley Business School, University of Reading.
    23. Inge Ivarsson & Claes Göran Alvstam, 2017. "New technology development by Swedish MNEs in emerging markets: the role of co-location of R&D and production," Asian Business & Management, Palgrave Macmillan, vol. 16(1), pages 92-116, April.
    24. Andrea Bonaccorsi & Daniele Biancardi & Mabel Sanchez Barrioluengo & Federico Biagi, 2019. "Study on Higher Education Institutions and Local Development," JRC Research Reports JRC117272, Joint Research Centre.

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