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Offshoring and Home Country R&D

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Author Info

  • Tingvall, Patrik

    ()
    (The Ratio Institute)

  • Karpaty, Patrik

    ()
    (Örebro University)

Abstract

National concerns are sometimes raised against offshoring of economic activities to other countries. While most of the existing literature has focused on the effects on labor demand and productivity the effects on domestic R&D have been neglected. This is unfortunate since the decision to offshore activities also includes R&D. We use unique and rich firm level data for the Swedish manufacturing sector to analyze how offshoring impacts domestic R&D and how these effects vary with respect to target region and type of firm. The results suggest that offshoring of production alter a firm’s investments in R&D in Sweden and that a negative impact on home country R&D is confined to offshoring by non-multinationals and offshoring to Europe and EU15 countries.

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Bibliographic Info

Paper provided by The Ratio Institute in its series Ratio Working Papers with number 180.

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Length: 12 pages
Date of creation: 21 Oct 2011
Date of revision:
Handle: RePEc:hhs:ratioi:0180

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Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Phone: 08-441 59 00
Fax: 08-441 59 29
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Web page: http://www.ratio.se/
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Keywords: Offshoring; R&D; Manufacturing sector; EU15;

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Cited by:
  1. Dachs, Bernhard & Ebersberger, Bernd & Kinkel, Steffen & Som, Oliver, 2014. "The effects of production offshoring on R&D and innovation in the home country," Discussion Papers "Innovation Systems and Policy Analysis" 39, Fraunhofer Institute for Systems and Innovation Research (ISI).

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