TY - BOOK AB - Offshoring research and development (R&D) commonly invokes concerns regarding the loss of high value jobs and a hollowing out of technological capabilities, but it can also benefit domestic firms by enabling them to tap into the global technological frontier. We study the effect of R&D offshoring on industrial productivity in the home country using industry-level data for 18 OECD countries over a 26-year period. Simultaneity between productivity and R&D offshoring is addressed by using foreign tax policy as an instrument for offshored R&D. We show that R&D offshoring contributes positively to productivity in the home country, irrespective of the host country destination. AU - de Rassenfosse, GaƩtan, AU - Thomson, Russell, ID - 47790 JF - Industrial and Corporate Change, KW - Technological innovations KW - Intellectual property KW - Research and development KW - International business enterprises LA - eng LK - https://doi.org/10.1093/icc/dtz020 N2 - Offshoring research and development (R&D) commonly invokes concerns regarding the loss of high value jobs and a hollowing out of technological capabilities, but it can also benefit domestic firms by enabling them to tap into the global technological frontier. We study the effect of R&D offshoring on industrial productivity in the home country using industry-level data for 18 OECD countries over a 26-year period. Simultaneity between productivity and R&D offshoring is addressed by using foreign tax policy as an instrument for offshored R&D. We show that R&D offshoring contributes positively to productivity in the home country, irrespective of the host country destination. SN - 0960-6491 (Print) SN - 1464-3650 (Online) T1 - R&D offshoring and home industry productivity. TI - R&D offshoring and home industry productivity. UR - https://doi.org/10.1093/icc/dtz020 VL - Volume 28, Issue 6 ER -