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Location decisions of enterprise R&D investments as a function of related and unrelated regional industry structures: A multilevel study
Author(s) -
Aarstad Jarle,
Kvitastein Olav Andreas,
Jakobsen StigErik
Publication year - 2019
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/pirs.12366
Subject(s) - economic geography , business , industrial organization , function (biology) , multilevel model , investment (military) , economics , mathematics , statistics , political science , evolutionary biology , biology , politics , law
Despite that previous studies have examined factors that affect location decisions of enterprise R&D investments, they have not investigated if regional industry structures play a role. Responding to this research gap, we analyse data from Norway and find that location in regions with unrelated, diversified, and fragmented industry structures increases both the probability and amount of enterprise R&D investments. Location in regions with related and complementary industry structures, on the contrary, has no effect. We further find that location in populous regions spanning a large geographical area increases the probability of enterprise R&D investments.