The Impact of R&D Offshoring on the Home Knowledge Production of OECD Investing Regions
AbstractThis paper investigates the relationship between home and offshore R&D activities on the knowledge production of the investing home region. Debate is ongoing on whether R&D offshoring complements the R&D performed at home. In the light of increased offshoring of innovative activities to emerging countries, we explicitly focus on Brazil, Russia, India, China, Singapore and Taiwan. We suggest that complementarity should obtain, when home region and offshore R&D activities are dissimilar as well as when offshore R&D activities is about modular and less complex technologies. We ground our predictions on arguments related to geographical technological specialisation and reverse knowledge transfer from offshore locations to home regions within the more general open innovation trend. Using a theoretical framework based on the international business literature and the regional system of innovation perspective, we estimate a knowledge production function for a sample of 221 regions from 21 OECD countries with home region patent applications as the dependent variable. Our test supports our predictions on the complementarity between home region and offshore R&D.
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Bibliographic InfoPaper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 10-19.
Date of creation: 2010
Date of revision:
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Web page: http://www.druid.dk/
Home Region R&D; Offshore R&D; Knowledge Production; Complementarity; Emerging Countries;
Other versions of this item:
- Lorena M. D'Agostino & Keld Laursen & Grazia D. Santangelo, 2013. "The impact of R&D offshoring on the home knowledge production of OECD investing regions," Journal of Economic Geography, Oxford University Press, vol. 13(1), pages 145-175, January.
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-11 (All new papers)
- NEP-CSE-2010-09-11 (Economics of Strategic Management)
- NEP-INO-2010-09-11 (Innovation)
- NEP-IPR-2010-09-11 (Intellectual Property Rights)
- NEP-SBM-2010-09-11 (Small Business Management)
- NEP-SEA-2010-09-11 (South East Asia)
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