TY - JOUR
T1 - Endogenous R&D spillovers and locational choice
AU - Piga, Claudio
AU - Poyago-Theotoky, Joanna
PY - 2005/3/1
Y1 - 2005/3/1
N2 - 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.
AB - 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.
KW - Endogenous spillovers
KW - Location
KW - Quality-enhancing R&D
UR - http://www.scopus.com/inward/record.url?scp=15844403055&partnerID=8YFLogxK
U2 - 10.1016/j.regsciurbeco.2004.02.002
DO - 10.1016/j.regsciurbeco.2004.02.002
M3 - Article
AN - SCOPUS:15844403055
VL - 35
SP - 127
EP - 139
JO - Regional Science and Urban Economics
JF - Regional Science and Urban Economics
SN - 0166-0462
IS - 2
ER -