Department of Statistics, UCLA

This study uses Poisson regression techniques to analyze the location of biotechnology companies throughout the United States. Three hypotheses are considered: that firms locate in population centers in order to attract workers, that they locate near colleges and universities where potential workers are likely to be better educated, and that they locate in close proximity to researchoriented universities and institutes because high-technology firms frequently spin-off from these research centers. We find that clusters do tend to be located near population centers colleges and universities, but the influence of researchbased universities is particularly striking. This highlights a powerful policy instrument for regions hoping to promote high-tech industrial clusters: the creation and maintenance of a first-rate research-oriented university. While these ideas have been suggested in the past, our approach to defining, measuring, and analyzing these variables provides new insights into their significance, as well as suggesting avenues for future research.