IDEAS home Printed from https://ideas.repec.org/p/aal/abbswp/12-06.html
   My bibliography  Save this paper

The Global Fragmentation of R&D Activities: The Home Region Perspective

Author

Listed:
  • Lorena M. D'Agostino
  • Grazia D. Santangelo

Abstract

R&D offshoring has increasingly involved emerging countries as host locations and promoted a greater fragmentation of R&D activities across borders. As a result, a subtle international division of labor in knowledge production has yielded a fine-slicing of R&D activities with the highest valueadded activities located in the most advanced countries and the lowest value-added activities in emerging countries. However, no study, to our knowledge, has investigated whether finely sliced foreign R&D activities complement each other in terms of greater knowledge production at home. Drawing on a rich dataset, we estimate a regional knowledge production function and apply a direct complementarity test. Our results suggest that the global fragmentation of R&D activities produces synergic effects on the knowledge production of the home investing OECD regions when R&D activities are optimally rather than randomly located.

Suggested Citation

  • Lorena M. D'Agostino & Grazia D. Santangelo, 2012. "The Global Fragmentation of R&D Activities: The Home Region Perspective," DRUID Working Papers 12-06, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  • Handle: RePEc:aal:abbswp:12-06
    as

    Download full text from publisher

    File URL: http://www3.druid.dk/wp/20120006.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Mohnen, Pierre & Roller, Lars-Hendrik, 2005. "Complementarities in innovation policy," European Economic Review, Elsevier, vol. 49(6), pages 1431-1450, August.
    2. Filippaios, Fragkiskos & Papanastassiou, Marina & Pearce, Robert & Rama, Ruth, 2009. "New forms of organisation and R&D internationalisation among the world's 100 largest food and beverages multinationals," Research Policy, Elsevier, vol. 38(6), pages 1032-1043, July.
    3. Arora, Ashish & Arunachalam, V. S. & Asundi, Jai & Fernandes, Ronald, 2001. "The Indian software services industry," Research Policy, Elsevier, vol. 30(8), pages 1267-1287, October.
    4. Arora, Ashish, 1996. "Testing for complementarities in reduced-form regressions: A note," Economics Letters, Elsevier, vol. 50(1), pages 51-55, January.
    5. Rosina Moreno & Raffaele Paci & Stefano Usai, 2005. "Spatial spillovers and innovation activity in European regions," Environment and Planning A, Pion Ltd, London, vol. 37(10), pages 1793-1812, October.
    6. Athreye, Suma & Cantwell, John, 2007. "Creating competition?: Globalisation and the emergence of new technology producers," Research Policy, Elsevier, pages 209-226.
    7. Anselin, Luc & Varga, Attila & Acs, Zoltan, 1997. "Local Geographic Spillovers between University Research and High Technology Innovations," Journal of Urban Economics, Elsevier, vol. 42(3), pages 422-448, November.
    8. Lall, Sanjaya, 2003. "Indicators of the relative importance of IPRs in developing countries," Research Policy, Elsevier, pages 1657-1680.
    9. Eckhardt Bode, 2004. "The spatial pattern of localized R&D spillovers: an empirical investigation for Germany," Journal of Economic Geography, Oxford University Press, vol. 4(1), pages 43-64, January.
    10. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-970, December.
    11. Robert Huggins & Mehmet Demirbag & Violina Iankova Ratcheva, 2007. "Global Knowledge and R&D Foreign Direct Investment Flows: Recent Patterns in Asia Pacific, Europe, and North America," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(3), pages 437-451.
    12. Stéphane Maraut & Hélène Dernis & Colin Webb & Vincenzo Spiezia & Dominique Guellec, 2008. "The OECD REGPAT Database: A Presentation," OECD Science, Technology and Industry Working Papers 2008/2, OECD Publishing.
    13. Cooke, Phil, 2005. "Regionally asymmetric knowledge capabilities and open innovation: Exploring 'Globalisation 2'--A new model of industry organisation," Research Policy, Elsevier, vol. 34(8), pages 1128-1149, October.
    14. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 17-45 National Bureau of Economic Research, Inc.
    15. Farok J. Contractor & Vikas Kumar & Sumit K. Kundu & Torben Pedersen, 2010. "Reconceptualizing the Firm in a World of Outsourcing and Offshoring: The Organizational and Geographical Relocation of High-Value Company Functions," Journal of Management Studies, Wiley Blackwell, vol. 47(s2), pages 1417-1433, December.
    16. Kuemmerle, Walter, 1999. "Foreign direct investment in industrial research in the pharmaceutical and electronics industries--results from a survey of multinational firms," Research Policy, Elsevier, vol. 28(2-3), pages 179-193, March.
    17. Cantwell, John & Janne, Odile, 1999. "Technological globalisation and innovative centres: the role of corporate technological leadership and locational hierarchy1," Research Policy, Elsevier, vol. 28(2-3), pages 119-144, March.
    18. Ito, Banri & Wakasugi, Ryuhei, 2007. "What factors determine the mode of overseas R&D by multinationals? Empirical evidence," Research Policy, Elsevier, vol. 36(8), pages 1275-1287, October.
    19. Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 155-174, February.
    20. Arie Lewin & Silvia Massini & Carine Peeters, 2008. "Why are companies offshoring innovation ?the emerging global race for talent," Working Papers CEB 08-009, ULB -- Universite Libre de Bruxelles.
    21. John Cantwell & Grazia D. Santangelo, 2000. "Capitalism, profits and innovation in the new techno-economic paradigm," Journal of Evolutionary Economics, Springer, vol. 10(1), pages 131-157.
    22. Martin Carree & Boris Lokshin & René Belderbos, 2011. "A note on testing for complementarity and substitutability in the case of multiple practices," Journal of Productivity Analysis, Springer, vol. 35(3), pages 263-269, June.
    23. Michael J Enright, 2009. "The location of activities of manufacturing multinationals in the Asia-Pacific," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(5), pages 818-839, June.
    24. Acs, Zoltan J. & Anselin, Luc & Varga, Attila, 2002. "Patents and innovation counts as measures of regional production of new knowledge," Research Policy, Elsevier, vol. 31(7), pages 1069-1085, September.
    25. von Zedtwitz, Maximilian & Gassmann, Oliver, 2002. "Market versus technology drive in R&D internationalization: four different patterns of managing research and development," Research Policy, Elsevier, vol. 31(4), pages 569-588, May.
    26. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
    27. Scherer, F. M., 1983. "The propensity to patent," International Journal of Industrial Organization, Elsevier, vol. 1(1), pages 107-128, March.
    28. Susan Athey & Scott Stern, 1998. "An Empirical Framework for Testing Theories About Complimentarity in Organizational Design," NBER Working Papers 6600, National Bureau of Economic Research, Inc.
    29. Mehmet Demirbag & Keith W. Glaister, 2010. "Factors Determining Offshore Location Choice for R&D Projects: A Comparative Study of Developed and Emerging Regions," Journal of Management Studies, Wiley Blackwell, vol. 47(s2), pages 1534-1560, December.
    30. Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Wiley Blackwell, vol. 38(4), pages 361-379, June.
    31. Cantwell, John & Iammarino, Simona, 2001. "EU Regions and Multinational Corporations: Change, Stability and Strengthening of Technological Comparative Advantages," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 1007-1037, December.
    32. Sterlacchini, Alessandro, 2008. "R&D, higher education and regional growth: Uneven linkages among European regions," Research Policy, Elsevier, vol. 37(6-7), pages 1096-1107, July.
    33. Narula, Rajneesh, 2002. "Innovation systems and 'inertia' in R&D location: Norwegian firms and the role of systemic lock-in," Research Policy, Elsevier, vol. 31(5), pages 795-816, July.
    34. Grazia Santangelo, 2002. "The Regional Geography of Corporate Patenting in Information and Communications Technology (ICT): Domestic and Foreign Dimensions," Regional Studies, Taylor & Francis Journals, vol. 36(5), pages 495-514.
    35. Ernst, Dieter & Kim, Linsu, 2002. "Global production networks, knowledge diffusion, and local capability formation," Research Policy, Elsevier, vol. 31(8-9), pages 1417-1429, December.
    36. Arundel, Anthony & Kabla, Isabelle, 1998. "What percentage of innovations are patented? empirical estimates for European firms," Research Policy, Elsevier, vol. 27(2), pages 127-141, June.
    37. Cooke, Philip & Gomez Uranga, Mikel & Etxebarria, Goio, 1997. "Regional innovation systems: Institutional and organisational dimensions," Research Policy, Elsevier, vol. 26(4-5), pages 475-491, December.
    38. Thomas Hatzichronoglou, 1997. "Revision of the High-Technology Sector and Product Classification," OECD Science, Technology and Industry Working Papers 1997/2, OECD Publishing.
    39. Patel, Pari & Vega, Modesto, 1999. "Patterns of internationalisation of corporate technology: location vs. home country advantages1," Research Policy, Elsevier, vol. 28(2-3), pages 145-155, March.
    40. Lorena M. D'Agostino & Keld Laursen & Grazia D. Santangelo, 2013. "The impact of R&D offshoring on the home knowledge production of OECD investing regions," Journal of Economic Geography, Oxford University Press, vol. 13(1), pages 145-175, January.
    41. Michael Fritsch & Viktor Slavtchev, 2011. "Determinants of the Efficiency of Regional Innovation Systems," Regional Studies, Taylor & Francis Journals, vol. 45(7), pages 905-918.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. IIDAKA Yuki & HANAMURA Kenichi & KOMATSU Ayako & SAITO Yukiko & TSUKADA Naotoshi, 2013. "An Empirical Analysis of the Effectiveness of Information Security Measures," Discussion papers 13086, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    Keywords

    R&D fine-slicing; R&D optimal location; home region knowledge production; emerging countries;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aal:abbswp:12-06. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keld Laursen). General contact details of provider: http://www.druid.dk/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.