The phenomenon of physical R&D-manufacturing co-location is interesting, because researchers have made very different observations regarding its prevalence. In some populations co-location of the two functions seems to be the norm; in others, an exception. However, we still do not have an...

While both manufacturing and R&D location decisions have received considerable theoretical and empirical attention from economists and organization scientists, theories and evidence regarding the co-location of the two are scarce. The goal of this article is to lay the theoretical foundation for...