TY  - GEN
AB  - We examine the profitability of different R&D location strategies of firms in a
dynamic industry model. Firms engage in imitative and innovative activities in
order to improve their products' quality, which determines their competitiveness.
When choosing the set of locations in which to operate firms face a fundamental
trade-off: co-locating with competitors' generates opportunities to improve product
quality through imitation, but at the same time it increases the risk of losing
one's competitive edge through outgoing spillovers. Being unable to fully predict
competitors' moves, in making location choices firms rely on heuristics based on
the expected present values associated with alternative location patterns. In a
positive perspective, our model replicates key stylized facts highlighted in the pertinent
empirical literature. On normative ground, we identify industry scenarios in
which a firm should enter (not enter) a location even if the expected present value
of doing so is negative (positive). Our key contribution is to provide a taxonomy
of suitable firm location strategies depending on firm type and industry characteristics
in a dynamic environment with endogenous cluster formation.
DA  - 2019
DO  - 10.4119/unibi/2939606
KW  - Location Strategy
KW  - Knowledge Spillovers
KW  - Industry Dynamics
KW  - Innovation
KW  - Imitation
KW  - etace_WP
LA  - eng
PY  - 2019
SN  - 2196-2723
SP  - 46-
TI  - R&D Location Strategies
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29396062
Y2  - 2024-11-27T02:53:25
ER  -