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

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Author Info
Suma Athreye
Martha Prevezer

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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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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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References listed on IDEAS
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  1. Arora, Ashish & Athreye, Suma, 2002. "The software industry and India's economic development," Information Economics and Policy, Elsevier, vol. 14(2), pages 253-273, June. [Downloadable!] (restricted)
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  2. onder Nomaler & Bart Verspagen, 2008. "Knowledge Flows, Patent Citations and the Impact of Science on Technology," Economic Systems Research, Taylor and Francis Journals, vol. 20(4), pages 339-366. [Downloadable!] (restricted)
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  3. 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. [Downloadable!]
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  4. 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. [Downloadable!] (restricted)
  5. T. Gao, 2003. "Multinational activity and country characteristics in OECD countries," Applied Economics Letters, Taylor and Francis Journals, vol. 10(4), pages 255-258, March. [Downloadable!] (restricted)
  6. 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.
  7. 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, Blackwell Publishing, vol. 28(3), pages 664-685, 09. [Downloadable!] (restricted)
  8. 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. [Downloadable!] (restricted)
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