The determinants of the geographic distribution of industry R&D activity are examined with particular emphasis on the role of university research as well as state science and technology programs. An analysis of a cross section of metropolitan areas indicates that industry R&D labs are located in areas with state science and technology programs, as well as in areas with higher levels of university research, larger quantities of non‐welfare related local government spending, a better educated workforce, and a greater population density.
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Bania et al. (1992) studied this question.
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