The Impact of R&D Offshoring on the Home Knowledge Production of OECD Investing Regions

Lorena M. D’Agostino, Keld Laursen () and Grazia Santangelo
Authors registered in the RePEc Author Service: Lorena Maria D'Agostino

No 10-19, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies

Abstract: This paper investigates the relationship between home and offshore R&D activities on the knowledge production of the investing home region. Debate is ongoing on whether R&D offshoring complements the R&D performed at home. In the light of increased offshoring of innovative activities to emerging countries, we explicitly focus on Brazil, Russia, India, China, Singapore and Taiwan. We suggest that complementarity should obtain, when home region and offshore R&D activities are dissimilar as well as when offshore R&D activities is about modular and less complex technologies. We ground our predictions on arguments related to geographical technological specialisation and reverse knowledge transfer from offshore locations to home regions within the more general open innovation trend. Using a theoretical framework based on the international business literature and the regional system of innovation perspective, we estimate a knowledge production function for a sample of 221 regions from 21 OECD countries with home region patent applications as the dependent variable. Our test supports our predictions on the complementarity between home region and offshore R&D.

Keywords: Home Region R&D; Offshore R&D; Knowledge Production; Complementarity; Emerging Countries (search for similar items in EconPapers)
JEL-codes: L24 O32 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-cse, nep-ino, nep-ipr, nep-pr~, nep-sbm and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Journal Article: The impact of R&D offshoring on the home knowledge production of OECD investing regions (2013)
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