The Role of Absorptive Capacity in R&D Firms’ Location Choice

This study investigates the location choice behaviour of firms engaged in R&D activities in Türkiye. The primary objective is to analyse the effect of firm absorptive capacity on location choice. The empirical analysis is based on a firm-oriented approach, considering location as a source of knowledge-based competitive advantage. The TurkStat Research and Development Activities Survey (2019) Micro Data Set is the primary data source. The cross-sectional data set, created for 2019, includes data on 5,871 firms in the Micro Data Set. The geographical scope of the sample is NUTS Level 1 regions, where the headquarters of the R&D firm is located. The estimation method is the Nested Logit model. Results indicate that R&D firms in Türkiye tend to be located in regions with intense knowledge spillovers and favourable demand conditions. This results in an uneven distribution of R&D firms across regions. It is clear from the study's evidence that policymakers should consider the unique competencies and objectives of firms and regions in designing regional development and industrial policies.