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R&D internationalisation and sector productivity: a host country perspective

Author

Listed:
  • Boutheina Abassi

    (Laboratory of Economics and Industrial Management (LEGI), Tunisia Polytechnic School)

  • Moez El Elj

    (Laboratory of Economics and Industrial Management (LEGI), Tunisia Polytechnic School
    University of Tunis)

Abstract

Offshoring research and development (R&D) is part of a global tendency of value chain desegregation. The increasing trend towards R&D decentralisation leads to tangible implications for the home country and host country. It raises concerns regarding the “hollowing-out” and the loss of knowledge basis and technological competitiveness. This paper addresses this topic and examines the effect of R&D offshoring on industrial productivity from a host country perspective using an R&D offshoring indicator and industry-level for major OECD countries over the period 2005–2016. In particular, this study explores whether FDI-related R&D of multinational’s foreign affiliates have a significant impact on host sector productivity level. The findings indicate that R&D offshoring generates significant productivity gains. In fact, there is a positive association between the extent of inward R&D and the host sector productivity, supporting the idea that R&D inflows and foreign R&D strengthen local knowledge base and technological capabilities.

Suggested Citation

  • Boutheina Abassi & Moez El Elj, 2022. "R&D internationalisation and sector productivity: a host country perspective," SN Business & Economics, Springer, vol. 2(11), pages 1-18, November.
    • Handle: RePEc:spr:snbeco:v:2:y:2022:i:11:d:10.1007_s43546-022-00353-9
    DOI: 10.1007/s43546-022-00353-9
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    More about this item

    Keywords

    Productivity growth; Offshoring of R&D; Internationalisation; Multinational firms;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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