Offshoring of R&D: Looking abroad to improve innovation performance
AbstractThe offshoring of knowledge services has become a phenomenon of increasing importance for firms, but many of its implications are yet to be discussed thoroughly. This paper analyzes whether R&D offshoring contributes to enhancing firms’ innovation capabilities. Specifically, the study distinguishes between two governance models of offshoring – captive offshoring and offshore outsourcing – and two types of innovation outcomes – product and process innovations. We suggest that R&D offshoring has different impacts, depending on the innovation results and governance models considered. The study empirically tests these relationships using the Spanish Technological Innovation Panel. This survey contains information on a large sample of firms from diverse sectors for the period 2004–2007. The empirical findings allow us confirm our hypotheses, and highlight the strategic importance of R&D offshoring. The empirical evidence reveals a positive relation between offshoring and innovation performance, with a greater effect on product than on process innovations. The results for different governance models show that captive offshoring has a greater effect on innovation outcomes than offshore outsourcing. These findings lead us to conclude that firms that look overseas can benefit from location-specific and specialization advantages to improve innovation performance.
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Bibliographic InfoArticle provided by Palgrave Macmillan in its journal Journal of International Business Studies.
Volume (Year): 42 (2011)
Issue (Month): 3 (April)
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- Castellani, Davide & Pieri, Fabio, 2013.
"R&D offshoring and the productivity growth of European regions,"
Research Policy, Elsevier,
Elsevier, vol. 42(9), pages 1581-1594.
- Davide Castellani & Fabio Pieri, 2011. "R&D Offshoring and the Productivity Growth of European Regions," Working Papers, Department of Applied Economics II, Universidad de Valencia 1120, Department of Applied Economics II, Universidad de Valencia.
- Castellani, Davide & Pieri, Fabio, 2013. "R&D offshoring and the productivity growth of European regions," CIRCLE Electronic Working Papers, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy 2013/20, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
- Davide Castellani & Fabio Pieri, 2012. "R&D Offshoring and the Productivity Growth of European Regions," Development Working Papers, Centro Studi Luca d\'Agliano, University of Milano 345, Centro Studi Luca d\'Agliano, University of Milano, revised 13 Nov 2012.
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