Scandinavian Working Papers in Economics

Working Papers,
Örebro University, School of Business

No 2024:4: Regional location of business sector research and development

Kent Eliasson (), Pär Hansson () and Markus Lindvert ()
Additional contact information
Kent Eliasson: Swedish Agency for Growth Policy Analysis, Postal: Studentplan 3, SE - 831 40 Östersund, Sweden
Pär Hansson: Swedish Agency for Growth Policy Analysis, Postal: Studentplan 3, SE - 831 40 Östersund, Sweden
Markus Lindvert: Swedish Agency for Growth Policy Analysis, Postal: Studentplan 3, SE - 831 40 Östersund, Sweden

Abstract: In the paper, we break down business sector R&D at an appropriate regional level (functional analysis regions, FA-regions) in Sweden. We describe the variation and development at the regional level. In an econometric analysis, we examine what affects the location and size of enterprise groups’ R&D activities in different FA-regions. We find that enterprise groups concentrate their R&D to the same regions, which are also regions with significant academic R&D (external agglomeration). Moreover, colocation of R&D and manufacturing within an enterprise group in a region (internal agglomeration) appears to be a significant location factor. Last but not least, the local availability of qualified R&D labor is another important localization factor for business sector R&D. Finally, when we compare the results from the econometric analysis with what enterprise groups themselves states as important motives for location, we find that they match quite well.

Keywords: business sector R&D; regional location; external agglomeration; colocation of R&D and production; abundance of qualified labor

JEL-codes: J24; O32; R11; R12

Language: English

39 pages, May 28, 2024

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