Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/63669
Authors: 
Ketokivi, Mikko
Ali-Yrkkö, Jyrki
Year of Publication: 
2007
Series/Report no.: 
ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 1082
Abstract: 
The phenomenon of physical R&D-manufacturing co-location is interesting, because researchers have made very different observations regarding its prevalence. In some populations co-location of the two functions seems to be the norm; in others, an exception. However, we still do not have an explicit explanatory theory of co-location. In this paper, we look the reasons why manufacturing and R&D may have to be physically co-located. In a sample of 241 Finnish industrial firms, we find that the need for co-location varies drastically from company to company. We further find that product complexity, process complexity and industry clockspeed have an effect on co-location need.
Subjects: 
Business location decisions, co-location, R&D, manufacturing, contingency theory
JEL: 
D21
D23
F21
F23
L6
O32
Document Type: 
Working Paper

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