2007/05/01 by Juan Alcácer, Wilbur Chung · 818 citations
Economics, Econometrics and Finance · #Business #Competitor analysis #Economic Growth and Productivity #Economic Policies and Impacts #Economic geography #Economics #Function (biology) #Industrial organization #Knowledge spillover #Marketing #Regional Economics and Spatial Analysis
paper · doi:10.1287/mnsc.1060.0637
published in Management Science 53(5), 760-776 (Institute for Operations Research and the Management Sciences)
openalex publication_date 2007/05/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
Given the importance of proximity for knowledge spillovers, we examine firms’ location choices expecting differences in firms’ strategies. Firms will locate to maximize their net spillovers as a function of locations’ knowledge activity, their own capabilities, and competitors’ anticipated actions. Using new entrants into the United States from 1985 to 1994, we find that firms favor locations with academic innovative activity. Other results highlight differences in firms’ location strategies suggesting that firms consider not only gains from inward knowledge spillovers but also the possible cost of outward spillovers. While less technologically advanced firms favor locations with high levels of industrial innovative activity, technologically advanced firms choose only locations with high levels of academic activity and avoid locations with industrial activity to distance themselves from competitors.