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Determinants for locating research and development activity in Europe

Author

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  • Sylvie Montout
  • Mina Sami

Abstract

In this paper, we contribute to the literature by analyzing the location determinants of R&D activities in Europe. We do so by studying the location choices of 1281 investment decisions from 2007 to 2012. We used a dataset from the European Observatory IFA. We began by analyzing the location determinants of R&D activities and then studied the co-location phenomena between production and innovation activities at the firm level. The results confirm that the location of innovation activities is more driven by market access, agglomeration forces and skilled labor pools. Furthermore, we demonstrate there is interdependence between the location decisions for innovation and production units at the firm level.

Suggested Citation

  • Sylvie Montout & Mina Sami, 2016. "Determinants for locating research and development activity in Europe," International Economics, CEPII research center, issue 145, pages 7-20.
    • Handle: RePEc:cii:cepiie:2016-q1-145-2
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    Cited by:

    1. Fischer, Leonie & Heckemeyer, Jost H. & Spengel, Christoph & Steinbrenner, Daniela, 2021. "Tax policies in a transition to a knowledge-based economy: The effective tax burden of companies and highly skilled labour," ZEW Discussion Papers 21-096, ZEW - Leibniz Centre for European Economic Research.
    2. Mina Sami & Tarek Ibrahim Eldomiaty, 2020. "Modeling dynamic location expansion of multinational firms in France," Empirical Economics, Springer, vol. 59(6), pages 3033-3061, December.

    More about this item

    Keywords

    R&D; FDI; Agglomeration; Co-Location; Coordination costs;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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