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Corporate decision-making in R&D outsourcing and the impact on internal R&D employment intensity

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  • Peter Teirlinck
  • Michel Dumont
  • André Spithoven

Abstract

This article aims to assess whether firms' strategies of R&D outsourcing determine changes in their internal R&D employment intensity. Four strategic decisions are investigated: to start, increase, decrease or stop outsourcing. It is found that internal R&D employment intensity decreases when firms decide to start, to increase, or to stop R&D outsourcing. However, this finding hides important differences according to the type and the location of the contractor. In general, firms prefer a mix of different types of contractors at different locations. Started outsourcing of R&D to research centers within the nation and increased R&D outsourcing to research centers within the region appear to decrease the internal R&D employment intensity. Decreasing outsourcing to national universities in another region also has a negative impact on internal R&D employment intensity. A corporate decision to stop R&D outsourcing to other firms within the nation but outside the region has a positive impact on the internal R&D employment intensity. The latter is the only effect that is not only statistically significant but is also substantial in magnitude. Copyright 2010 The Author 2010. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Suggested Citation

  • Peter Teirlinck & Michel Dumont & André Spithoven, 2010. "Corporate decision-making in R&D outsourcing and the impact on internal R&D employment intensity," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(6), pages 1741-1768, December.
    • Handle: RePEc:oup:indcch:v:19:y:2010:i:6:p:1741-1768
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    File URL: http://hdl.handle.net/10.1093/icc/dtq038
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    Citations

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    Cited by:

    1. Spithoven, André & Teirlinck, Peter, 2015. "Internal capabilities, network resources and appropriation mechanisms as determinants of R&D outsourcing," Research Policy, Elsevier, vol. 44(3), pages 711-725.
    2. Teirlinck, Peter, 2017. "Configurations of strategic R&D decisions and financial performance in small-sized and medium-sized firms," Journal of Business Research, Elsevier, vol. 74(C), pages 55-65.
    3. Saebi, Tina & Foss, Nicolai J., 2015. "Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions," European Management Journal, Elsevier, vol. 33(3), pages 201-213.
    4. André Spithoven & Peter Teirlinck & Dirk Frantzen, 2012. "Managing Open Innovation," Books, Edward Elgar Publishing, number 14723.
    5. Teirlinck, Peter, 2020. "Engaging in new and more research-oriented R&D projects: Interplay between level of new slack, business strategy and slack absorption," Journal of Business Research, Elsevier, vol. 120(C), pages 181-194.
    6. Wenjing Wang, 2014. "Do specialists exit the firm outsourcing its R&D?," Economics Working Papers 2014-21, Department of Economics and Business Economics, Aarhus University.
    7. Adelheid Holl & Ruth Rama, 2014. "Foreign Subsidiaries and Technology Sourcing in Spain," Industry and Innovation, Taylor & Francis Journals, vol. 21(1), pages 43-64, January.
    8. Thuy Seran & Sea Matilda Bez, 2019. "Managing Open-Innovation between Competitors: A Project-Level Approach," Post-Print hal-02427680, HAL.

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