Ekholm, Karolina; Hakkala, Katariina - Institutet för Näringslivsforskning (IFN) - 2004
This paper presents evidence that, in Europe, production of high-tech goods is attracted to large markets, while R&D activities tend to be located away from them. In order to explain this phenomenon, we develop a two-country general equilibrium model where firms make separate choices about the...