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Determinants of Manufacturing-R&D Co-location

Author

Listed:
  • Ketokivi, Mikko
  • Ali-Yrkkö, Jyrki

Abstract

The phenomenon of physical R&D-manufacturing co-location is interesting, because researchers have made very different observations regarding its prevalence. In some populations co-location of the two functions seems to be the norm; in others, an exception. However, we still do not have an explicit explanatory theory of co-location. In this paper, we look the reasons why manufacturing and R&D may have to be physically co-located. In a sample of 241 Finnish industrial firms, we find that the need for co-location varies drastically from company to company. We further find that product complexity, process complexity and industry clockspeed have an effect on co-location need.

Suggested Citation

  • Ketokivi, Mikko & Ali-Yrkkö, Jyrki, 2007. "Determinants of Manufacturing-R&D Co-location," Discussion Papers 1082, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:dpaper:1082
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    Cited by:

    1. Baier, Elisabeth & Rammer, Christian & Schubert, Torben, 2015. "The Impact of Captive Innovation Offshoring on the Effectiveness of Organizational Adaptation," Journal of International Management, Elsevier, vol. 21(2), pages 150-165.
    2. Baier , Elisabeth & Rammer , Christian & Schubert , Torben, 2013. "The Impact of Innovation Off-shoring on Organizational Adaptability," Papers in Innovation Studies 2013/44, Lund University, CIRCLE - Centre for Innovation Research.

    More about this item

    Keywords

    business location decisions; co-location; research and development; manufacturing; contingency theory;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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