This study compares the impact of R&D on value added between domestic and foreign firms in Singapore. The analysis is based on a comprehensive panel database from 1993 to 1999 provided by the Singapore Government. Our results found that R&D investments of foreign firms generated higher value...

Agglomeration theory argues that locating close to competitors can be beneficial in terms of gaining from heightened demand -- more frequent consumer visits and subsequent purchases through reducing consumer search costs. This paper examines the trade-off between competition and the...