Location of Universities and National Research Institutes and Firms' Location Choice of R&D Facilities

Author Name EDAMURA Kazuma (Japan Productivity Center) / INUI Tomohiko (Faculty Fellow, RIETI) / YAMAUCHI Isamu (Research Associate, RIETI)
Creation Date/NO. August 2017 17-J-048
Research Project Refinement and Analysis of the Regional-Level Japan Industrial Productivity Database: Providing basic information for Japan's regional development policy
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Using plant- and half-year-level micro data for the period 2007-2011, this paper analyzes the location decision of a research and development (R&D) facility on a plant in Japan. We control the effects of the characteristics of the plant, the population, labor cost, industry agglomeration, and other fixed effects of the prefecture in which it is located. The results by logit model show that firms tend to locate their R&D facility on plants near universities or national research institutes with comparatively large research expenditures and a greater number of researchers.