טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentBaider Eran
SubjectSpatial Distribution of R and D in the Business Sector in
Israel
Implication for Regional Policy
DepartmentDepartment of Architecture and Town Planning
Supervisor Professor Emeritus Amnon Frenkel
Full Thesis text - in Hebrew Full thesis text - Hebrew Version


Abstract

Investment in R&D (research and development) in the business sector is a major factor with key social and economic effects. There is evidence from previous research to suggest that most government support is directed at central regions. However, when directed at peripheral regions, the support has positive effects on the region and encourages further R&D.  In Israel, high technology industries are mostly distributed in central areas. The government supports and subsidizes R&D investments in the business sector in different ways.

 The main goals of the present study were to examine the spatial distribution and characteristics of R&D activities in Israeli firms in the business sector, and to examine the influences that location of an enterprise has on its R&D capabilities. We also examined the policies of direct support with its spatial distribution in different industry branches and its influence on the investment in R&D. In addition, we wished to determine whether the spatial distribution of support encourages or discourages self-investment. We used the Central Bureau of Statistics (CBS) database in order to examine the location of enterprises and its influence on involvement in R&D, and the characteristics of the enterprises.

The main results show that industry branches differ widely in their levels of involvement in R&D. The more technologically advanced are more involved in R&D. While examining the spatial location of firms we discovered that most of the R&D expenses and enterprises are found in central areas, especially in high technology enterprises. We also found that in many cases, there is a direct correlation between central location and having a positive influence on R&D performance and the enterprises willingness to engage in R&D. Furthermore, we found that the further away an enterprise is from the center, the lower its R&D performance.

We found that the majority of the government support in Israel goes to high-tech industries in central locations, and that this support decreases with increasing distance from central regions into the peripheral regions. We found that government support has a positive influence on increasing the R&D expenditure of the enterprises themselves. However, we also found that in enterprises receiving government support, the self-investment is lower than the self-investment in enterprises not receiving government support. This investment is influenced by the size of the enterprise, and even more so by the percentage of government support out of the total R&D expenditure in an enterprise.