() and Fabio Pieri
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Davide Castellani: 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
Fabio Pieri: Depto. de Economia Aplicada II (Estructura Economica), Universitat de Valencia, Spain
Abstract: 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.
Keywords: R&D Offshoring; Regional Productivity; Foreign Investments; Europe
JEL-codes: C23; F23; O47; O52; R11
41 pages, May 11, 2013
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