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What effect does the aggregate industrial R&D offshoring have on you? A multilevel study

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  • Tojeiro-Rivero, Damián

Abstract

The present study argues that R&D offshoring is not only a matter of firm's decision as in previous literature, but also has an important industrial externality component. For a sample of manufacturing and services industries in the period 2005–15, I study the externalities coming from R&D offshorers in a given industry and the heterogeneous effects of enterprises' internal knowledge base characteristics. The evidence points to offshoring externality (OE) presenting an inverted U-shape with respect to the firms' innovative processes. However, firms with higher levels of human capital and/or internal R&D investments obtain higher returns coming from the OE. Overall, it seems that a strategy (R&D offshoring) that is highly beneficial for enterprises individually, might be also optimal for the Spanish economy.

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  • Tojeiro-Rivero, Damián, 2022. "What effect does the aggregate industrial R&D offshoring have on you? A multilevel study," Journal of International Management, Elsevier, vol. 28(2).
    • Handle: RePEc:eee:intman:v:28:y:2022:i:2:s1075425321000612
    DOI: 10.1016/j.intman.2021.100881
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