Firm Location, Corporate Structure,R&D Investment, Innovation and Productivity

• This study elucidates how firm location and corporate structure influence R&D-intensity, externalcollaboration on innovation, return on R&D and economic performance. The study, based on 1,907 firmlevel observations, essentially compare a functional region with four other regional areas in Sweden. Inthis context, the Stockholm region is assumed as an integrated functional urban region with innovationproximitycharacteristics. The paper examines systematically the influence of location versus various firmcharacteristics. The econometric results suggest the following: First, a typical Stockholm firm has asignificantly larger likelihood than other firms of being engaged in innovation activities. Second, amonginnovative firms, the R&D intensity and global collaboration on innovation is primarily determined by itscorporate structure, not geographic location. Third, the embeddedness in regional and national scientificand vertical innovation systems is relatively more intense outside Stockholm. Finally, the advantage ofbeing located within Sweden’s most strongest concentration of R&D spending, universities, human capitaland multinational enterprises with their global networks is reflected by a superior return on R&Dinvestments and higher productivity, when controlling for firm size, human capital, physical capital, R&Dintensity,market orientation and sector classification.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Keyword

Regional economy

multinational companies

R&D

innovation

innovation system

Publication and Content Type

vet (subject category)

rap (subject category)