Do technology leaders deter inward R&D investments? Evidence from regional R&D location decisions in Europe

R.A. Belderbos, D. Somers

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

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.
Original languageEnglish
Pages (from-to)1805-1821
Number of pages17
JournalRegional Studies
Volume49
Issue number11
DOIs
Publication statusPublished - 2 Nov 2015

Keywords

  • Multinational firms
  • research and development (R&D)
  • Location choice
  • FOREIGN DIRECT-INVESTMENT
  • KNOWLEDGE SPILLOVERS
  • MULTINATIONAL FIRMS
  • UNITED-STATES
  • AGGLOMERATION ECONOMIES
  • PATENT CITATIONS
  • INDUSTRIAL-ORGANIZATION
  • GEOGRAPHIC LOCALIZATION
  • INNOVATION SYSTEMS
  • JAPANESE FIRMS

Cite this