Offshoring R&D

Joonas Tuhkuri, Hans Lööf (), Ali Mohammadi and Petri Rouvinen

No 52, ETLA Reports from The Research Institute of the Finnish Economy

Abstract: 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 enterprise 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: F0 F16 F2 J44 L2 O3 O32 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2016-05-04
New Economics Papers: this item is included in nep-knm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Offshoring R&D (2016)
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