Scandinavian Working Papers in Economics

Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

No 439: Offshoring R&D

Joonas Tuhkuri (), Hans Lööf (), Ali Mohammadi () and Petri Rouvinen ()
Additional contact information
Joonas Tuhkuri: ETLA, The Research Institute of the Finnish Economy, Helsinki, Finland
Hans Lööf: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology
Ali Mohammadi: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology
Petri Rouvinen: ETLA, The Research Institute of the Finnish Economy, Helsinki, Finland

Abstract: This paper explores offshoring of firms’ research and development functions. Our analysis employs a previously untapped and unique Eurostat International Sourcing Survey. The results are easy to summarize. First, the magnitude of R&D offshoring is small. Second, a large majority of R&D is offshored within the en-terprise group, in contrast to offshoring outside of the enterprise group. Third, most of R&D offshoring from Europe is directed to high-income European countries, not so to low-cost countries in Europe, China, or India. Fourth, R&D jobs do have been lost from offshoring; however, the negative employment impact has been moderate. But the Eurostat International Sourcing Survey does not allow entangling the full net employment effect of R&D offshoring, which could be either negative or positive.

Keywords: R&D; offshoring; outsourcing; innovation; product development

JEL-codes: F00; F16; F23; J44; L22; O32; O33

13 pages, May 12, 2016

Full text files 

cesiswp439.pdf PDF-file

Download statistics

Questions (including download problems) about the papers in this series should be directed to Vardan Hovsepyan ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-21 12:08:40.