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Foreign Direct Investment, R&D Mobility and the New Economic Geography: A Survey

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  • Amelia U. Santos-Paulino
  • Mariagrazia Squicciarini
  • Peilei Fan

Abstract

type="main" xml:id="twec12208-abs-0001"> This paper surveys several strands of the economics literature focusing on the international mobility of FDI in general, and the offshoring and outsourcing of R&D activities in particular. The paper outlines key findings, identifies common features and existing divergences and addresses the relevant research gaps emerging from the R&D offshoring and outsourcing literatures. The aim is to investigate the main drivers of R&D (re)location and the possible impact that the offshoring and outsourcing of R&D activities might have on the competitiveness and growth of both firms and countries. Factor price differences, trading costs, countries' size and openness, relative skill endowments, productivity differentials, completeness and enforceability of contracts, knowledge production and spillovers and IPR regimes all shape foreign sourcing and the specific R&D location patterns that emerge. The overall impact of offshoring and outsourcing in general—and of R&D in particular—cannot be seen in isolation, as it is part of more complex globalisation dynamics.

Suggested Citation

  • Amelia U. Santos-Paulino & Mariagrazia Squicciarini & Peilei Fan, 2014. "Foreign Direct Investment, R&D Mobility and the New Economic Geography: A Survey," The World Economy, Wiley Blackwell, vol. 37(12), pages 1692-1715, December.
    • Handle: RePEc:bla:worlde:v:37:y:2014:i:12:p:1692-1715
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    File URL: http://hdl.handle.net/10.1111/twec.2014.37.issue-12
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    Cited by:

    1. Luisa Gagliardi & Simona Iammarino & Andrés Rodríguez-Pose, 2021. "Exposure to OFDI and regional labour markets: evidence for routine and non-routine jobs in Great Britain [Who’s got the aces up his sleeve? Functional specialization of cities and entrepreneurship]," Journal of Economic Geography, Oxford University Press, vol. 21(5), pages 783-806.
    2. Colin Davis & Ken-ichi Hashimoto, 2019. "Innovation Offshoring with Fully Endogenous Growth," ISER Discussion Paper 1055, Institute of Social and Economic Research, Osaka University.
    3. Dachs, Bernhard, 2017. "Internationalisation of R&D: A Review of Drivers, Impacts, and new Lines of Research," MPRA Paper 83367, University Library of Munich, Germany.
    4. Eliane Choquette & Stine Jessen Haakonsson & Peter D. Ørberg Jensen & Søren Feodor Nielsen, . "Globalization of innovation: the moderating role of project-level investment strategy and country type in location choice for R&D-related FDI," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    5. Haruna Shoji & Goel Rajeev K., 2016. "International Tariffs in a Mixed Oligopoly with Research Spillovers," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 22(3), pages 277-293, August.
    6. Colin Davis & Ken-ichi Hashimoto, 2016. "Innovation and Manufacturing Offshoring with Fully Endogenous Productivity Growth," Discussion Papers 1636, Graduate School of Economics, Kobe University.

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