The Impact of R&D Offshoring on the Home Knowledge Production of OECD Investing Regions

Lorena M. D'Agostino, Keld Laursen, Grazia D. Santangelo

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    We investigate the effect of research and development (R&D) offshoring from high-income regions to prominent emerging economies. Specifically, we examine whether there is a complementary relationship between a region’s home and foreign investments in R&D that affects home’s regional knowledge production. Using a theoretical framework based on economic geography and the literature on international knowledge sourcing, we conjecture that high-income regions would have a comparative advantage in high-tech R&D, while emerging economies would have an advantage in medium/low R&D. Complementarity should obtain when the comparative advantages of the geographical areas are utilized. We find overall empirical support for this prediction.
    TidsskriftJournal of Economic Geography
    Udgave nummer1
    Sider (fra-til)145-175
    StatusUdgivet - 2013