File(s) under permanent embargo
Reason: This item is currently closed access.
Endogenous R&D spillovers and locational choice
journal contributionposted on 2006-05-30, 11:44 authored by Claudio Piga, Joanna Poyago-Theotoky
We present a three-stage game where two firms choose location, R&D and price, under the assumption that R&D spillovers depend on firms’ location. That is, the closer firms are to each other, the greater the benefit they receive from their rivals’ efforts in quality-enhancing R&D. We show that the distance between firms’ location increases with the degree of product differentiation. Further, we find that minimal quality differentiation always occurs. Finally, investment in R&D is positively associated with the degree of product differentiation.
- Business and Economics
CitationPIGA, C. and POYAGO-THEOTOKY, J., 2005. Endogenous R&D spillovers and locational choice. Regional Science and Urban Economics, 35, pp.127-139.
NotesThis is Restricted Access. This article was published in the journal, Regional Science and Urban Economics [© Elsevier] and is available at: http://www.sciencedirect.com/science/journal/01660462.