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

Martin Junge, Anders Sørensen

Research output: Contribution to journalJournal articleResearchpeer-review


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.
Original languageEnglish
JournalApplied Economics Letters
Issue number18
Pages (from-to)1283-1287
Number of pages5
Publication statusPublished - Oct 2018

Bibliographical note

Published online: 21 December 2017


  • Offshoring
  • Domestic and foreign R&D

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