Kashefi, Mohammad Ali (2011): The effect of vertical knowledge spillovers via the supply chain on location decision of firms.
Download (393Kb) | Preview
In this paper a game theoretic model is employed to analyze the relationship between strategic location decision of firms in the supply chain considering the role of horizontal and vertical knowledge spillovers, and numerical approach is applied to characterize the equilibria of the considered multi-stage game. Geographical concentration or isolation as equilibrium outcome is determined based on our different parameterizations and two scenarios each consists of two separated cases, which we establish according to the location of our agents. In the first scenario both suppliers are supposed to be located in different regions while in the second one they act in a same region. In addition, first case of each scenario considers geographical isolation of two producers whereas second case investigates the geographical concentration. Furthermore, the effect of different technological level of our agents on their final location decision is investigated.
|Item Type:||MPRA Paper|
|Original Title:||The effect of vertical knowledge spillovers via the supply chain on location decision of firms|
|Keywords:||Strategic Firm Location, Knowledge Spillover, Geographical Concentration, Supply Chain|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Production Analysis, and Firm Location > R30 - General
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets
C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology; Computer Programs > C88 - Other Computer Software
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C61 - Optimization Techniques; Programming Models; Dynamic Analysis
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search; Learning; Information and Knowledge; Communication; Belief
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games
|Depositing User:||Mohammad Ali Kashefi|
|Date Deposited:||21. Jun 2011 14:25|
|Last Modified:||19. Feb 2013 14:20|
ALCACER, J. and CHUNG, W. (2007), “Location Strategies and Knowledge Spillovers”, Management Science, 53 (5), 760-776.
AUDRETSCH, D. and FELDMAN, M. (2004), “Knowledge Spillovers and Geography of Innovation”, in: Henderson, J.V. and
Thisse, J.-F. (Eds.) Handbook of Regional and Urban Economics, Vol. 4, (Amsterdam: North-Holland Press), 2714-2739.
ALMAZAN, A., DE MOTTA, A. and TITMAN, S. (2007), “Firm Location and the Creation and Utilization of Human Capital”, Review of Economic Studies, 74, 1305-1327.
BALDWIN, R.E., MARTIN, P.H. (2004), “Agglomeration and Regional Growth”, in: Henderson, J.V. and Thisse, J.-F. (Eds.) Handbook of Regional and Urban Economics, Vol. 4, (Amsterdam: North-Holland Press), 2671-2711.
BELDERBOS, R., LYKOGIANNI, E. and VEUGELERS, R. (2008), “Strategic R&D Location by Multinational Firms: Spillovers, Technology Sourcing, and Competition”, Journal of Economics and Management Strategy, 17 (3), 759-779.
BEUGELSDIJK, S., SMEETS, R. and ZWINKELS, R. (2008), “The Impact of Horizontal and Vertical FDI on Host’s Country Economic Growth”, International Business review, 17, 452-472.
CANTWELL, J. (2009), “Location and the Multinational Enterprise”, Journal of International Business Studies, 40, 35-41.
D’ASPREMONT, C. and JACQUEMIN, A. (1988), “Cooperative and Noncooperative R&D in Duopoly with Spillovers, American Economic Review, 78 (5), 1133-1137.
DAWID, H., GREINER, A. and ZOU, B. (2010), “Optimal Foreign Investment Dynamics in the Presence of Technological Spillovers”, Journal of Economic Dynamics and Control, 34 (3), 296-313.
DAWID, H. and WERSCHING, K. (2007), “On Technological Specialization in Industrial Clusters”, in: J.-P. Rennard (Ed.) Handbook of Research on Nature-Inspired Computing for Economic and Management, Vol. 1, 367-378.
FEINBERG, S.E. and GUPTA, A.K. (2004), “Knowledge Spillovers and the Assignment of R&D Responsibilities to Foreign Subsidiaries”, Strategic Management Journal, 25, 823-845.
FUJITA, M. and THISSE, J.-F, (2009), “New Economic Geography: An Appraisal on the Occasion of Paul Krugman’s 2008 Nobel Prize in Economic Sciences”, Regional Science and Urban Economics, 39, 109-119.
GERSBACH, H. and SCHMUTZLER, A. (2003), “Endogenous Spillovers and Incentives to Innovate”, Economic Theory, 21, 59-79.
ISHII, A. (2004), “Cooperative R&D Between Vertically Related Firms with spillovers”, International Journal of Industrial Organization, 22, 1213-1235.
KEILBACH, M. (2000), Spatial Knowledge Spillovers and the Dynamics of Agglomeration and Regional Growth, (Heidelberg: Physica-Verlag)
KRUGMAN, P. (1991a), Geography and Trade (Cambridge, MA: MIT Press)
KRUGMAN, P. (1991b), “Increasing Returns and Economic Geography”, Journal of Political Economy, 99, 483-499.
KRUGMAN, P. and VENABLES, A.J. (1995), “Globalization and the Inequality of Nations”, The Quarterly Journal of Economics, 110 (4), 857-880.
MATOUSCHEK, N. and ROBERT-NICOUD, F. (2005), “The Role of Human Capital Investment in the Location Decision of Firms”, Regional Science and Urban Economics, 35, 570-583.
PORTER, M.E. (1998), “Clusters and the New Economics of Competition”, Harvard Business Review, 76 (6), 77-90.
PORTER, M.E. and STERN, S. (2001), “Innovation: Location Matters“, MIT Sloan Management Review, 42 (42), 27-37.
POYAGO-THEOTOKY, J. (1999), “A Note on Endogenous Spillovers in a Non-Tournament R&D Duopoly”, Review of Industrial Organization, 15, 253-262.
RIGGS, W., VON HIPPEL, E. (1994), “Incentives to Innovate and the Sources of Innovation: The Case of Scientific Instruments”, Research Policy, 43, 209-226.
SHY, O. (1995), Industrial Organization (Cambridge, MA: MIT Press)
VON HIPPEL, E. (1998), The Source of Innovation, (New York: Oxford University Press).
WOLFRAM, S. (1996), The Mathematica Book (Cambridge University Press)
Available Versions of this Item
- The effect of vertical knowledge spillovers via the supply chain on location decision of firms. (deposited 21. Jun 2011 14:25) [Currently Displayed]