Study on the relationship between the localisation of production, R&D and innovation activities

Client/Funding Institution

European Commission, DG Enterprise and Industry


This study was based on empirical evidence, and helps to explain the link between innovation and geographical dispersion at EU aggregate level. It examined (1) existing evidence on the drivers that determine the choice of production location by a firm and, in particular, the role of innovation in that decision; (2) impact of production location on research and innovation activities, in particular the level and the location of innovation activities of the firm; and (3) consequences deriving from decisions regarding the location of firm innovation, as well as the impact on innovation in the home economy and/or on access to markets. wiiw co-operated with IDEA Consult in this study and contributed to the literature review, data analysis and case studies. The study was part of a framework contract with DG ENTERPRISE on Industrial Competitiveness.


December 2013 - May 2014

wiiw team Leader

Johannes Pöschl

wiiw Staff

Doris Hanzl-Weiss, Ronald Hartwig, Olga Pindyuk

Project Partners

IDEA Consult, Danish Technology Institute (DTI)

Keywords: Innovation, Competitiveness, firm innovation

Countries covered: EU-27

Research Areas: International Trade, Competitiveness and FDI