This paper shows empirically that in an intra-industry oligopolistic
scenario the location of a firm's innovative activities plays an
important role in determining its partner selection in R&D alliances.
Such a role is mainly attributed to a strategic use of R&D alliances as
a means to limit knowledge flows and protect competences, rather than to
promote knowledge flows. By drawing on a novel dataset matching
alliances and patent data for the European ICT industry, the econometric
analysis shows that partners' prior co-location (at both national and
sub-national regional level), previous ties and technological overlap
matter in the choice of partner, while common nationality has a negative
impact on alliance formation.
Keywords: Alliances, strategy, efficiency, R&D location. JEL: D23, F23, O18, O32, R3
UNU-MERIT Working Papers ISSN 1871-9872