TY  - JOUR
AB  - This paper investigates firms’ optimal location choices explicitly accounting for the role of inwards and outwards knowledge spillovers in a dynamic Cournot oligopoly with firms that are heterogeneous in their ability to carry out cost-reducing R&D. Firms can either locate in an industrial cluster or in isolation. Technological spillovers are exchanged between the firms in the cluster. It is shown that a technological leader has an incentive to locate in isolation only if her advantage exceeds a certain threshold, which is increasing in firms’ discount rate, in industry dispersion, and in the intensity of knowledge spillovers. Scenarios are identified where although it is optimal for the technological leader to locate in isolation, from a welfare perspective it would be desirable that she locates in the cluster.
DA  - 2014
DO  - 10.1016/j.jedc.2014.05.018
KW  - Dynamic Optimization
KW  - network formation
KW  - etace_dynamic_optimization
KW  - etace_network_formation
LA  - eng
M2  - 288
PY  - 2014
SN  - 0165-1889
SP  - 288-307
T2  - Journal of Economic Dynamics and Control
TI  - Strategic Location Choice Under Dynamic Oligopolistic Competition and Spillovers
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-26498509
Y2  - 2024-11-22T04:44:45
ER  -