Domestic R&D and Offshoring: Does Offshoring Reduce Knowledge Production?

Martin Junge, Anders Sørensen

Research output: Contribution to journal › Journal article › Research › peer-review

Abstract

An important question in industrialized countries is whether offshoring activities reduce the probability of performing own research and development (R&D) or whether the R&D intensity falls in firms that already have R&D activities. This question is addressed using a unique data set that combines survey and register data. No evidence is found for a lower probability of own R&D after offshoring takes place compared to before. Moreover, offshoring does not lead to lower R&D intensity in general. However, firms that offshore R&D activity have larger R&D intensity after offshoring has taken place, which suggests that R&D performed at home is complementary to foreign R&D.
An important question in industrialized countries is whether offshoring activities reduce the probability of performing own research and development (R&D) or whether the R&D intensity falls in firms that already have R&D activities. This question is addressed using a unique data set that combines survey and register data. No evidence is found for a lower probability of own R&D after offshoring takes place compared to before. Moreover, offshoring does not lead to lower R&D intensity in general. However, firms that offshore R&D activity have larger R&D intensity after offshoring has taken place, which suggests that R&D performed at home is complementary to foreign R&D.
LanguageEnglish
JournalApplied Economics Letters
Volume25
Issue number18
Pages183-187
Number of pages5
ISSN1350-4851
DOIs
StatePublished - Oct 2018

Bibliographical note

Published online: 21 December 2017

Keywords

  • Offshoring
  • Domestic and foreign R&D

Cite this

Junge, Martin ; Sørensen, Anders. / Domestic R&D and Offshoring : Does Offshoring Reduce Knowledge Production?. In: Applied Economics Letters. 2018 ; Vol. 25, No. 18. pp. 183-187
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Junge, M & Sørensen, A 2018, 'Domestic R&D and Offshoring: Does Offshoring Reduce Knowledge Production?' Applied Economics Letters, vol. 25, no. 18, pp. 183-187. DOI: 10.1080/13504851.2017.1418068

Domestic R&D and Offshoring : Does Offshoring Reduce Knowledge Production? / Junge, Martin; Sørensen, Anders.

In: Applied Economics Letters, Vol. 25, No. 18, 10.2018, p. 183-187.

Research output: Contribution to journal › Journal article › Research › peer-review

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AU - Sørensen,Anders

N1 - Published online: 21 December 2017

PY - 2018/10

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N2 - An important question in industrialized countries is whether offshoring activities reduce the probability of performing own research and development (R&D) or whether the R&D intensity falls in firms that already have R&D activities. This question is addressed using a unique data set that combines survey and register data. No evidence is found for a lower probability of own R&D after offshoring takes place compared to before. Moreover, offshoring does not lead to lower R&D intensity in general. However, firms that offshore R&D activity have larger R&D intensity after offshoring has taken place, which suggests that R&D performed at home is complementary to foreign R&D.

AB - An important question in industrialized countries is whether offshoring activities reduce the probability of performing own research and development (R&D) or whether the R&D intensity falls in firms that already have R&D activities. This question is addressed using a unique data set that combines survey and register data. No evidence is found for a lower probability of own R&D after offshoring takes place compared to before. Moreover, offshoring does not lead to lower R&D intensity in general. However, firms that offshore R&D activity have larger R&D intensity after offshoring has taken place, which suggests that R&D performed at home is complementary to foreign R&D.

KW - Offshoring

KW - Domestic and foreign R&D

KW - Offshoring

KW - Domestic and foreign R&D

U2 - 10.1080/13504851.2017.1418068

DO - 10.1080/13504851.2017.1418068

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Junge M, Sørensen A. Domestic R&D and Offshoring: Does Offshoring Reduce Knowledge Production? Applied Economics Letters. 2018 Oct;25(18):183-187. Available from, DOI: 10.1080/13504851.2017.1418068

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