Determinants of Manufacturing-R&D Co-location

Mikko Ketokivi and Jyrki Ali-Yrkkö

No 1082, Discussion Papers from The Research Institute of the Finnish Economy

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.

Keywords: business location decisions; co-location; research and development; manufacturing; contingency theory (search for similar items in EconPapers)
JEL-codes: D21 D23 F21 F23 L6 O32 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2007
New Economics Papers: this item is included in nep-geo and nep-ino
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Citations: View citations in EconPapers (4)

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