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When Does Co-location of Manufacturing and R&D Matter?

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  • Ketokivi, Mikko

Abstract

While both manufacturing and R&D location decisions have received considerable theoretical and empirical attention from economists and organization scientists, theories and evidence regarding the co-location of the two are scarce. The goal of this article is to lay the theoretical foundation for R&D-manufacturing co-location. Theories of functional integration along with qualitative and preliminary quantitative empirical data are used to examine the question : when is co-location of R&D and manufacturing necessary?

Suggested Citation

  • Ketokivi, Mikko, 2006. "When Does Co-location of Manufacturing and R&D Matter?," Discussion Papers 1051, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:dpaper:1051
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    File URL: http://www.etla.fi/wp-content/uploads/2012/09/dp1051.pdf
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    References listed on IDEAS

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    1. Xavier, CASTANER & Mikko, KETOKIVI, 2003. "Planning as an integrative device," HEC Research Papers Series 775, HEC Paris.
    2. Blanc, Helene & Sierra, Christophe, 1999. "The Internationalisation of R&D by Multinationals: A Trade-off between External and Internal Proximity," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(2), pages 187-206, March.
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    4. Howells, Jeremy R., 1995. "Going global: The use of ICT networks in research and development," Research Policy, Elsevier, vol. 24(2), pages 169-184, March.
    5. Walter Kuemmerle, 1999. "The Drivers of Foreign Direct Investment into Research and Development: An Empirical Investigation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(1), pages 1-24, March.
    6. Alan M. Rugman & Alain Verbeke, 2005. "Subsidiary Specific Advantages in Multinational Enterprises," Chapters, in: Analysis of Multinational Strategic Management, chapter 6, pages 77-90, Edward Elgar Publishing.
    7. Myriam Mariani, 2002. "Next to Production or to Technological Clusters? The Economics and Management of R&D Location," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 6(2), pages 131-152, May.
    8. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    9. Rafii, Farshad, 1995. "How important is physical collocation to product development success?," Business Horizons, Elsevier, vol. 38(1), pages 78-84.
    10. Stephen Appold, 2005. "Location Patterns of US Industrial Research: Mimetic Isomorphism and the Emergence of Geographic Charisma," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 17-39.
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    Cited by:

    1. Juan Alcácer & Mercedes Delgado, 2016. "Spatial Organization of Firms and Location Choices Through the Value Chain," Management Science, INFORMS, vol. 62(11), pages 3213-3234, November.
    2. 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.

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    More about this item

    Keywords

    location decisions; co-location; functional integration; organization theory;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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