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

Abstract: National concerns are sometimes raised against offshoring of economic activities to other countries. While most of the existing literature has focused on the effects on labor demand and productivity the effects on domestic R&D have been neglected. This is unfortunate since the decision to offshore activities also includes R&D. We use unique and rich firm level data for the Swedish manufacturing sector to analyze how offshoring impacts domestic R&D and how these effects vary with respect to target region and type of firm. The results suggest that offshoring of production alter a firm’s investments in R&D in Sweden and that a negative impact on home country R&D is confined to offshoring by non-multinationals and offshoring to Europe and EU15 countries.

Keywords: Offshoring; R&D; Manufacturing sector; EU15

JEL-codes: C23; F16; F23; J23

20 pages, August 17, 2011

Full text files

cesiswp254.pdf  

Download statistics

• Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies
• Home page for this series

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 ().

RePEc:hhs:cesisp:0254This page generated on 2024-09-13 22:14:26.