This paper aims at explaining how proximity between firms affects cooperation in R&D. For that purpose, it is proposed a three-stage game amongst three firms where each firm decides about location, R&D and output. Firms’ decision about location determines a R&D spillover, which is inversely...

In this essay, we intend to evaluate the importance of R&D (Research and Development) activities for firms' decision about location. For that purpose, we use micro-level data for the Portuguese industrial sector and focus on the location choices made by new starting firms during 1992-2000 within...