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R&D location in dynamic industry environments

Author

Listed:
  • Luca Colombo
  • Herbert Dawid
  • Philipp Harting

Abstract

We study firms’ optimal R&D location strategies in a dynamic industry model with competition in product quality. In light of potential future inwards and outwards spillovers firms make their location choices relying on heuristic strategies that are based on the expected present values associated with alternative location patterns. Using a simulation analysis, we show how the strategies of innovators and imitators differ and how they depend on whether firms operate in strongly or weakly innovative industry environments. We also characterize how firms’ location choices should account for the innovativeness of the competitors active in a location.

Suggested Citation

  • Luca Colombo & Herbert Dawid & Philipp Harting, 2024. "R&D location in dynamic industry environments," Journal of Economic Geography, Oxford University Press, vol. 24(1), pages 41-62.
    • Handle: RePEc:oup:jecgeo:v:24:y:2024:i:1:p:41-62.
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    References listed on IDEAS

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    More about this item

    Keywords

    Location heuristic; knowledge spillovers; industry dynamics; innovation; imitation;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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