The Role of Absorptive Capacity in R&D Firms’ Location Choice
Year 2025,
Volume: 33 Issue: 64, 131 - 158
Büşra Akın
,
Ümit K. Seyfettinoğlu
Abstract
This study investigates the location choice behaviour of firms engaged in R&D activities in Türkiye. The primary objective is to analyse the effect of firm absorptive capacity on location choice. The empirical analysis is based on a firm-oriented approach, considering location as a source of knowledge-based competitive advantage. The TurkStat Research and Development Activities Survey (2019) Micro Data Set is the primary data source. The cross-sectional data set, created for 2019, includes data on 5,871 firms in the Micro Data Set. The geographical scope of the sample is NUTS Level 1 regions, where the headquarters of the R&D firm is located. The estimation method is the Nested Logit model. Results indicate that R&D firms in Türkiye tend to be located in regions with intense knowledge spillovers and favourable demand conditions. This results in an uneven distribution of R&D firms across regions. It is clear from the study's evidence that policymakers should consider the unique competencies and objectives of firms and regions in designing regional development and industrial policies.
Thanks
We would like to thank TurkStat Antalya Regional Office Directorate, especially the personnel of the Data Research Centre, for providing technical support in accessing the Micro Data Set.
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Ar-Ge Firmalarının Yerleşim Seçiminde Özümseme Kapasitesinin Rolü
Year 2025,
Volume: 33 Issue: 64, 131 - 158
Büşra Akın
,
Ümit K. Seyfettinoğlu
Abstract
Bu çalışma, Türkiye’de Ar-Ge faaliyeti yürüten firmaların yerleşim seçim davranışını araştırmaktadır. Birincil amaç, firma özümseme kapasitesinin yerleşim seçimi üzerindeki etkisini analiz etmektir. Çalışmanın ampirik analizi, firma-odaklı bir yaklaşıma dayanmakta ve yerleşimin bilgiye dayalı rekabetçi güç kaynağı olmasını göz önüne almaktadır. Temel veri kaynağı, TÜİK Mali ve Mali Olmayan Şirketler Araştırma-Geliştirme Faaliyetleri Araştırması (2019) Mikro Veri Setidir. 2019 yılı için oluşturulan yatay kesit veri seti İBBS Düzey 1 bölgelerinde Ar-Ge faaliyetinde bulunan 5 bin 871 firmayı içermektedir. Tahmin yöntemi, Nested Logit modeldir. Sonuçlara göre Türkiye’deki Ar-Ge firmaları, bilgi ortamı ve talep koşulları bakımından elverişli yerleri seçme eğilimindedir. Bu eğilim, Ar-Ge firmalarının bölgeler arasında eşitsiz dağılmasıyla sonuçlanmaktadır. Dolayısıyla, politika yapıcıların bölgesel kalkınma ve sanayi politikaları tasarlarken firmaların ve bölgelerin yetenekleri ve hedeflerini dikkate alması elzemdir.
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- Berkoz, L. & S.S. Turk (2009), “Locational preferences of FDI firms in Turkey: A detailed examination of regional determinants”, European Planning Studies, 17(8), 1243-1256.
- Bottazzi, G. & U. Gragnolati (2015), “Cities and Clusters: Economy-wide and Sector-specific Effects in Corporate Location”, Regional Studies, 49(1), 113-129.
- Brülhart, M. et al. (2007), “Do Agglomeration Economies Reduce the Sensitivity of Firm Location to Tax Differentials?”, The Economic Journal, 122(563), 1069-1093.
- Campi, M.T. et al. (2004), “The Location of New Firms and The Life Cycle of Industries”, Small Business Economics, 22(3/4), 265-281.
- Chen, H.C. & Y.W. Yu (2008), “Using a Strategic Approach to Analysis the Location Selection for High-tech Firms in Taiwan”, Management Research News, 31(4), 228-244.
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- Council of Higher Education of Türkiye (2024), Universities: Our Universities, <https://www.yok.gov.tr/universiteler/universitelerimiz>, 09.06.2023.
- Deakins, D. & J. Bensemann (2019), “Does a Rural Location Matter for Innovative Small Firms? How Rural and Urban Environmental Contexts Shape Strategies of Agri-Business Innovative Small Firms”, Management Decision, 57(7), 1568-1588.
- Deichmann, J. et al. (2003), “Foreign Direct Investment in Turkey: Regional Determinants”, Applied Economics, 35(16), 1767-1778.
- Deichmann, U. et al. (2005), “Agglomeration, Transport and Regional Development in Indonesia”, World Bank Policy Research Working Paper Series, WPS 3477, World Bank, Washington, D.C.
- Demirbag, M. et al. (2010), “Institutional and Transaction Cost Determinants of Turkish MNEs’ Location Choice”, International Marketing Review, 27(3), 272-294.
- Devereux, M.P. et al. (2007), “Firm Location Decisions, Regional Grants and Agglomeration Externalities”, Journal of Public Economics, 91(3/4), 413-435.
- Eurostat (2022), Eurostat Indicators on High-tech Industry and Knowledge Intensive Services (htec), < https://ec.europa.eu/eurostat/cache/metadata/en/htec_esms.htm>, 07.11.2023.
- Feldman, M.P. (1999), “The New Economics of Innovation, Spillovers and Agglomeration: A review of Empirical Studies”, Economics of Innovation and New Technology, 8(1-2), 5-25.
- Ferreira, J.J. et al. (2016), “Entrepreneur Location Decisions Across Industries”, International Entrepreneurship and Management Journal, 12(4), 985-1006.
- Fosfuri, A. & J.A. Tribó (2008), “Exploring the Antecedents of Potential Absorptive Capacity and Its Impact on Innovation Performance”, Omega, 36(2), 173-187.
- Fotopoulos, G. & H. Louri (2000), “Location and Survival of New Entry”, Small Business Economics, 14(4), 311-321.
- Fujita, M. et al. (1999), The Spatial Economy Cities, Regions, and International Trade, London: The MIT Press.
- Gertler, M.S. (1995), “‘Being there’: Proximity, Organization, and Culture in the Development and Adoption of Advanced Manufacturing Technologies”, Economic Geography, 71(1), 1-26.
- Gómez Antonio, M. & S. Sweeney (2021), “Testing the Role of Intra Metropolitan Local Factors on Knowledge Intensive Industries’ Location Choices”, The Annals of Regional Science, 66(3), 699-728.
- Greene, W.H. (2008), Econometric Analysis, New Jersey: Pearson Prentice Hall.
- Guimarães, P. et al. (2004), “Industrial Location Modeling: Extending the Random Utility Framework”, Journal of Regional Science, 44(1), 1-20.
- Hansen, E.R. (1987), “Industrial Location Choice in Sao Paulo, Brazil: A Nested Logit Model”, Regional Science and Urban Economics, 17(1), 89-108.
- Hart, S.L. et al. (1989), “A Contingency Approach to Firm Location: The Influence of Industrial Sector and Level of Technology”, Policy Studies Journal, 17(3), 599-623.
- Henderson, J.V. (1991), Urban Development: Theory, Fact, and Illusion, New York: Oxford University Press.
- Hensher, D.A. & W.H. Greene (1999), “Specification and Estimation of Nested Logit Models”, The Institute of Transport Studies Working Paper, ITS-WP-99-4, Sydney & Monash, Australia, <https://ses.library.usyd.edu.au/handle/2123/19041>, 21.12.2019.
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- Hoover, E.M. (1937), Location Theory and the Shoe and Leather Industries, Cambridge: Harvard University Press.
- Hoover, E.M. (1948), The Location of Economic Activities, New York: McGraw-Hill.
- Jo, Y. & C.Y. Lee (2014), “Technological Capability, Agglomeration Economies and Firm Location Choice”, Regional Studies, 48(8), 1337-1352.
- Jofre-Monseny, J. et al. (2011), “The Mechanisms of Agglomeration: Evidence from the Effect of Inter-Industry Relations on the Location of New Firms”, Journal of Urban Economics, 70(2-3), 61-74.
- Karahasan, B.C. (2010), “Dynamics and Variation of Regional Firm Formation-Case of Turkey”, PhD diss., Marmara University, İstanbul.
- Karahasan, B.C. (2015), “Dynamics of Regional New Firm Formation in Turkey”, Review of Urban & Regional Development Studies, 27(1), 18-39.
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