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R&D offshoring and the productivity growth of European regions

  • Castellani, Davide

    ()

    (Department of Economics, Finance and Statistics, University of Perugia, Centro Studi Luca d'Agliano, Milan, Italy Halle Institute for Economic Research (IWH), Halle, Germany CIRCLE, Lund University, Sweden)

  • Pieri, Fabio

    ()

    (Depto. de Economia Aplicada II (Estructura Economica), Universitat de Valencia, Spain)

The recent increase in R&D offshoring have raised fears that knowledge and competitiveness 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 offshoring is associated with productivity dynamics of European regions. We find that offshoring regions have higher productivity growth, but this positive effect fades down with the number of investment projects carried out abroad. A large and positive correlation emerge between the extent of R&D offshoring and the home region productivity growth, supporting the idea that carrying out R&D abroad strengthen European competitiveness.

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File URL: http://wp.circle.lu.se/upload/CIRCLE/workingpapers/201320_Castellani_Pieri.pdf
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Paper provided by Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy in its series Papers in Innovation Studies with number 2013/20.

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Length: 41 pages
Date of creation: 11 May 2013
Date of revision:
Handle: RePEc:hhs:lucirc:2013_020
Contact details of provider: Postal: CIRCLE, Lund University, PO Box 117, SE-22100 Lund, Sweden
Phone: +46 (0) 46 222 74 68
Web page: http://www.circle.lu.se/

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