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R&D Offshoring and the Productivity Growth of European Regions

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  • Davide Castellani

    () (Department of Economics, Finance and Statistics, University of Perugia and Centro Studi Luca D'Agliano, Milan)

  • Fabio Pieri

    () (Department of Economics, Finance and Statistics, University of Perugia)

Abstract

The recent increase in R&D o shoring have raised fears that knowledge and competitive- ness in advanced countries may be at risk of `hollowing out'. At the same time, economic research has stressed that this process is also likely to allow some reverse technology transfer and foster growth at home. This paper addresses this issue by investigating the extent to which R&D o shoring is associated with productivity dynamics of European (NUTS2) regions. In particular, we explore whether R&D investments abroad have a di erent impact from those in manufacturing and other business activities. We nd that o shoring regions have higher productivity growth, but this positive e ect fades down with the number of investment projects carried out abroad. However, a large and positive correlation emerge between the extent of R&D o shoring and the home region produc- tivity growth, supporting the idea that carrying out R&D abroad strengthen European competitiveness.

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Bibliographic Info

Paper provided by Department of Applied Economics II, Universidad de Valencia in its series Working Papers with number 1120.

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Length: 25 pages
Date of creation: Aug 2011
Date of revision:
Handle: RePEc:eec:wpaper:1120

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Keywords: Regional Productivity; Foreign Investments; Europe; R&D Offshoring;

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