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The Effect of R&D Services Offshoring on Skilled Employment: Firm Evidence

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  • Mery Patricia Tamayo
  • Elena Huergo

Abstract

The offshoring of high-tech services has greatly increased in recent years, with consequences for firms demand for skilled employment in firms. This paper specifically analyzes the relationship between R&D offshoring and the demand for R&D employment using firm-level data for Spanish manufacturing and services companies during the period 2004-2009. Estimating different specifications with panel data techniques, we find that this association is statistically positive. In particular, for services firms a 1 percentage point increase in R&D offshoring raises the demand for researchers by about 11%. This suggests the existence of complementarity among them as productive inputs.
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Suggested Citation

  • Mery Patricia Tamayo & Elena Huergo, 2016. "The Effect of R&D Services Offshoring on Skilled Employment: Firm Evidence," The World Economy, Wiley Blackwell, vol. 39(9), pages 1414-1433, September.
  • Handle: RePEc:bla:worlde:v:39:y:2016:i:9:p:1414-1433
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    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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