Offshoring and Home Country R&D

Patrik Karpaty and Patrik Tingvall

No 254, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: National concerns are sometimes raised against offshoring of economic activities to other countries. While most of the existing literature has focused on the effects on labor demand and productivity the effects on domestic R&D have been neglected. This is unfortunate since the decision to offshore activities also includes R&D. We use unique and rich firm level data for the Swedish manufacturing sector to analyze how offshoring impacts domestic R&D and how these effects vary with respect to target region and type of firm. The results suggest that offshoring of production alter a firm’s investments in R&D in Sweden and that a negative impact on home country R&D is confined to offshoring by non-multinationals and offshoring to Europe and EU15 countries.

Keywords: Offshoring; R&D; Manufacturing sector; EU15 (search for similar items in EconPapers)
JEL-codes: C23 F16 F23 J23 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2011-08-17
New Economics Papers: this item is included in nep-cwa and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Offshoring and Home Country R&D (2015)
Working Paper: Offshoring and Home Country R&D (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:cesisp:0254

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