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R&D offshoring and the domestic science base in India and China

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  • Suma Athreye
  • Martha Prevezer

Abstract

This paper uses patent and publication data to assess the nature of technological advantages that are attracting R&D offshoring and outsourcing activities to India and China and the possible consequences of such R&D offshoring in increasing domestic innovative capability and building domestic research infrastructure. We find evidence that domestic patenting is concentrated in sectors that are different from sectors of R&D offshoring. Furthermore, whilst the domestic science base (as measured by publications data) in India and China shows strong complementarities in its specialisation profile to that in the US, our data also suggest that the location of international R&D activity in these economies from 1995 may not have strengthened the science base of these economies. Foreign patenting activities in India and China are also marked by a low attachment to the science base.

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Bibliographic Info

Paper provided by Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research in its series Working Papers with number 26.

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Date of creation: Sep 2008
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Handle: RePEc:cgs:wpaper:26

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Keywords: R&D offshoring/internationalisation; Science base; Emerging economies; India and China;

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  1. Hu, Albert Guangzhou & Jefferson, Gary H., 2009. "A great wall of patents: What is behind China's recent patent explosion?," Journal of Development Economics, Elsevier, vol. 90(1), pages 57-68, September.
  2. Kumar, Nagesh, 2001. "Determinants of location of overseas R&D activity of multinational enterprises: the case of US and Japanese corporations1," Research Policy, Elsevier, vol. 30(1), pages 159-174, January.
  3. Verspagen, Bart & Nomaler, Onder, 2007. "Knowledge Flows, Patent Citations and the Impact of Science on Technology," MERIT Working Papers 022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  4. Manuel Trajtenberg, 1999. "Innovation in Israel 1968-97: A Comparative Analysis Using Patent Data," NBER Working Papers 7022, National Bureau of Economic Research, Inc.
  5. Hicks, Diana & Breitzman, Tony & Olivastro, Dominic & Hamilton, Kimberly, 2001. "The changing composition of innovative activity in the US -- a portrait based on patent analysis," Research Policy, Elsevier, vol. 30(4), pages 681-703, April.
  6. T. Gao, 2003. "Multinational activity and country characteristics in OECD countries," Applied Economics Letters, Taylor & Francis Journals, vol. 10(4), pages 255-258.
  7. Athreye, Suma & Cantwell, John, 2007. "Creating competition?: Globalisation and the emergence of new technology producers," Research Policy, Elsevier, vol. 36(2), pages 209-226, March.
  8. Arora, Ashish & Athreye, Suma, 2001. "The Software Industry and India's Economic Development," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  9. Balaji Parthasarathy, 2004. "India's Silicon Valley or Silicon Valley's India? Socially Embedding the Computer Software Industry in Bangalore," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 28(3), pages 664-685, 09.
  10. Pari Patel & Keith Pavitt, 1991. "Large Firms in the Production of the World’s Technology: An Important Case of “Non-Globalisation”," Journal of International Business Studies, Palgrave Macmillan, vol. 22(1), pages 1-21, March.
  11. Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 155-74, February.
  12. Paola Criscuolo & Rajneesh Narula, 2005. "Using Multi-hub Structures for international R&D Organizational Inertia and the Challenges of Implementation," DRUID Working Papers 05-13, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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Cited by:
  1. Martha Prevezer & Pietro Panzarasa & Tore Opsahl, 2010. "Geographic clustering and network evolution of innovative activities: Evidence from China’s patents," Working Papers 32, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.

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