Offshoring R&D

Joonas Tuhkuri, Hans Lööf (), Ali Mohammadi () and Petri Rouvinen
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Ali Mohammadi: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology

No 439, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: This paper explores offshoring of firms’ research and development functions. Our analysis employs a previously untapped and unique Eurostat International Sourcing Survey. The results are easy to summarize. First, the magnitude of R&D offshoring is small. Second, a large majority of R&D is offshored within the en-terprise group, in contrast to offshoring outside of the enterprise group. Third, most of R&D offshoring from Europe is directed to high-income European countries, not so to low-cost countries in Europe, China, or India. Fourth, R&D jobs do have been lost from offshoring; however, the negative employment impact has been moderate. But the Eurostat International Sourcing Survey does not allow entangling the full net employment effect of R&D offshoring, which could be either negative or positive.

Keywords: R&D; offshoring; outsourcing; innovation; product development (search for similar items in EconPapers)
JEL-codes: F00 F16 F23 J44 L22 O32 O33 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2016-05-12
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https://static.sys.kth.se/itm/wp/cesis/cesiswp439.pdf (application/pdf)

Related works:
Working Paper: Offshoring R&D (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:cesisp:0439

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