R&D internationalisation and sector productivity: a host country perspective

Boutheina Abassi () and Moez El Elj
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Boutheina Abassi: Laboratory of Economics and Industrial Management (LEGI), Tunisia Polytechnic School
Moez El Elj: Laboratory of Economics and Industrial Management (LEGI), Tunisia Polytechnic School

SN Business & Economics, 2022, vol. 2, issue 11, 1-18

Abstract: Abstract Offshoring research and development (R&D) is part of a global tendency of value chain desegregation. The increasing trend towards R&D decentralisation leads to tangible implications for the home country and host country. It raises concerns regarding the “hollowing-out” and the loss of knowledge basis and technological competitiveness. This paper addresses this topic and examines the effect of R&D offshoring on industrial productivity from a host country perspective using an R&D offshoring indicator and industry-level for major OECD countries over the period 2005–2016. In particular, this study explores whether FDI-related R&D of multinational’s foreign affiliates have a significant impact on host sector productivity level. The findings indicate that R&D offshoring generates significant productivity gains. In fact, there is a positive association between the extent of inward R&D and the host sector productivity, supporting the idea that R&D inflows and foreign R&D strengthen local knowledge base and technological capabilities.

Keywords: Productivity growth; Offshoring of R&D; Internationalisation; Multinational firms (search for similar items in EconPapers)
JEL-codes: F23 L6 O33 O47 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s43546-022-00353-9

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