Do Technology Leaders Deter Inward R&D Investments? Evidence from Regional R&D Location Decisions in Europe

Rene Belderbos and Dieter Somers

Regional Studies, 2015, vol. 49, issue 11, 1805-1821

Abstract: B elderbos R. and S omers D. Do technology leaders deter inward R&D investments? Evidence from regional R&D location decisions in Europe, Regional Studies . This paper examines the influence of local technology leaders on the attractiveness of regions for inward research and development (R&D) investments in an analysis of location choices for 196 cross-border R&D investments in EU-15 countries, 2003-08. While the strength of the regional technology cluster attracts inward R&D investments, investors are discouraged by a concentration of technology activities due to the presence of regional technology leaders. This effect occurs primarily if leaders organize their R&D in the region to reduce knowledge outflows to collocated firms - by drawing on intra-firm cross-border knowledge flows and complementary contributions of multiple R&D units.

Date: 2015
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DOI: 10.1080/00343404.2015.1018881

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