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Outsourcing, R&D and the Pattern of Intra-metropolitan Location: The Electronics Industries of Madrid

Author

Listed:
  • Luis Suarez-Villa

    (School of Social Ecology, University of California, Irvine, California 92717-5150, USA)

  • Ruth Rama

    (Institute of Economics and Geography, National Research Council of Spain, Madrid, Spain)

Abstract

The relationship between intra-metropolitan location, research and development (R&D) and the outsourcing of production is analysed to determine differences in, and the supportive character of, intra-metropolitan areas for high-technology production. Madrid's electronics industries have shown a remarkable resilience, in the face of extensive economic restructuring and the change in trade regimes that has accompanied continental integration. Much of the strength of the electronics sector may have been due to the metropolitan area's support for outsourcing, and the creative specialisation that it facilitated. The distribution of manufacturing establishments, their local sourcing characteristics, industrial district or agglomeration effects, and the role of R&D are evaluated to determine the intra-metropolitan context of production. Extensive statistical analyses of the relationship between R&D and productive performance, with various indicators of capital, costs, revenues and scale, are undertaken with establishment-level survey data. These analyses provide conclusive evidence of the influence of intra-metropolitan location on R&D and internal organisation.

Suggested Citation

  • Luis Suarez-Villa & Ruth Rama, 1996. "Outsourcing, R&D and the Pattern of Intra-metropolitan Location: The Electronics Industries of Madrid," Urban Studies, Urban Studies Journal Limited, vol. 33(7), pages 1155-1197, August.
    • Handle: RePEc:sae:urbstu:v:33:y:1996:i:7:p:1155-1197
    DOI: 10.1080/00420989650011564
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    Cited by:

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    2. Manuel Acosta Sero & Daniel Coronado Guerrero, 1998. "The influence of regional location on the innovation activity of Spanish firms: A logit analysis," ERSA conference papers ersa98p63, European Regional Science Association.
    3. Adelheid Holl & Rafael Pardo & Ruth Rama, 2010. "Just-in-Time Manufacturing Systems, Subcontracting and Geographic Proximity," Regional Studies, Taylor & Francis Journals, vol. 44(5), pages 519-533.
    4. Ruth Rama & Deron Ferguson, 2007. "Emerging Districts Facing Structural Reform: The Madrid Electronics District and the Reshaping of the Spanish Telecom Monopoly," Environment and Planning A, , vol. 39(9), pages 2207-2231, September.
    5. Anna Grandori, 2001. "Neither Hierarchy nor Identity: Knowledge-Governance Mechanisms and the Theory of the Firm," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 5(3), pages 381-399, September.
    6. Antonio Fuster Olivares & Jose Miguel Giner Pérez & MªJesús Santa María Beneyto, 2011. "Identification Of Technological Districts: The Case Of Spain," ERSA conference papers ersa11p1541, European Regional Science Association.
    7. Holl, Adelheid, 2008. "Production subcontracting and location," Regional Science and Urban Economics, Elsevier, vol. 38(3), pages 299-309, May.
    8. Diez-Vial, Isabel, 2011. "Geographical cluster and performance: The case of Iberian ham," Food Policy, Elsevier, vol. 36(4), pages 517-525, August.
    9. Luis Suarez-Villa & Wallace Walrod, 1997. "Operational Strategy, R&D and Intra-metropolitan Clustering in a Polycentric Structure: The Advanced Electronics Industries of the Los Angeles Basin," Urban Studies, Urban Studies Journal Limited, vol. 34(9), pages 1343-1380, August.

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