In this paper, we consider the extent to which R&D outsourcing and centralisation of R&D within the firm varies depending on the products that the firm produces and how applied the R&D is to a particular product. We find that, in general, the most applied type of R&D is more likely to be co-located with production than R&D that is more basic research. On average, 46% of the most applied type of R&D is co-located with production compared to 42% of all R&D done in-house
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