What determines the size of contract research from firms to universities? The role of geographical distance and regional co-location.

This article explores the role of geographical distance and regional co-location as a determinant of the size of contract research from firms to domestic universities. The analysis relies on a panel of three consecutive R&D surveys for Belgium, and controls for firm, university, and network characteristics. The findings reveal that firms tend to enter into larger-sized contract research with universities that are either located nearby or farther away. Regional co-location is also positively associated with the size of contract research from firms to universities. [ABSTRACT FROM AUTHOR]