Beyond the Silicon Valley: University R&D and high-technology location

• Type: Article in International Scientific Journal
• Date: 2006

Authors

Douglas Woodward (Author) Other; Octávio Figueiredo (Author) FEP; Paulo Guimaraes (Author) FEP

Journal

Title: Journal of Urban Economics

Vol. 60 No. 1

Pages: 15-32

ISSN: 0094-1190

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 107 Citations

ISI Web of Science

Scopus - 133 Citations

Scientific classification

FOS: Social sciences > Other social sciences

CORDIS: Social sciences > Economics

Other information

Authenticus ID: P-004-JYV

DOI: 10.1016/j.jue.2006.01.002

Abstract (EN): In this paper, we examine high-technology location in US counties, focusing on the relationship with university research and development (R&D). The Dirichlet-Multinomial model (an extension of the conditional logit model that allows for overdispersion) is used to estimate the determinants of manufacturing establishment births in US counties. We test the hypothesis that university R&D generates spillovers captured locally as new high-technology establishments, after controlling for local costs, demand, agglomeration economies and other important location factors. Estimates show that R&D expenditures at universities exert a positive, statistically significant influence on the decision to locate plants in a county. The marginal impacts of increased R&D funding on county probabilities for new high-tech plant births, however, appear to be modest. Separate estimates indicate that the findings hold up across most individual high-tech industries. Our model also determines the distance from university R&D in which economic spillovers can be detected. Spillover effects may extend up to approximately 145 miles from universities.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 18