R&D Offshoring and the Productivity Growth of European Regions

Davide Castellani and Fabio Pieri

No 1120, Working Papers from Department of Applied Economics II, Universidad de Valencia

Abstract: The recent increase in R&D o shoring have raised fears that knowledge and competitive- ness in advanced countries may be at risk of `hollowing out'. At the same time, economic research has stressed that this process is also likely to allow some reverse technology transfer and foster growth at home. This paper addresses this issue by investigating the extent to which R&D o shoring is associated with productivity dynamics of European (NUTS2) regions. In particular, we explore whether R&D investments abroad have a di erent impact from those in manufacturing and other business activities. We nd that o shoring regions have higher productivity growth, but this positive e ect fades down with the number of investment projects carried out abroad. However, a large and positive correlation emerge between the extent of R&D o shoring and the home region produc- tivity growth, supporting the idea that carrying out R&D abroad strengthen European competitiveness.

Keywords: Regional Productivity; Foreign Investments; Europe; R&D Offshoring (search for similar items in EconPapers)
JEL-codes: C23 C26 F23 O47 O52 R11 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2011-08
New Economics Papers: this item is included in nep-eff, nep-eur, nep-fdg, nep-geo, nep-ino and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://repecsrv.uv.es/paper/RePEc/pdf/eec_1120.pdf First version, 2011 (application/pdf)

Related works:
Journal Article: R&D offshoring and the productivity growth of European regions (2013)
Working Paper: R&D offshoring and the productivity growth of European regions (2013)
Working Paper: R&D Offshoring and the Productivity Growth of European Regions (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eec:wpaper:1120

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