R&D offshoring and home industry productivity.

R&D offshoring and home industry productivity.

Journal article

0960-6491 (Print) 1464-3650 (Online)

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.

Industrial and Corporate Change INCC 2019, 28(6), 1497–1513

Oxford, UK : Oxford University Press, 2019.

eng

https://academic.oup.com/pages/using-the-content/citation

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