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R&D Lab Location: Evidence from the French Case
The purpose of this paper is to empirically investigate how regional advantages and firms characteristics
influence the location of R&D. Looking at 2024 decisions of R&D lab location in France, the author implements an extended conditional logit with spatially lagged explanatory variables to evaluate the importance of each factor and to test the spatial dimension of knowledge spillovers. The results indicate that large market size, large amount of ideas, and low level of competition in the target region increases the probability of setting up R&D labs while the diffusion of knowledge across regions induces a significant spatial dependence.