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Offshoring R&D

Author

Listed:
  • Tuhkuri, Joonas

    (ETLA, The Research Institute of the Finnish Economy, Helsinki, Finland)

  • Lööf, Hans

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Mohammadi, Ali

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Rouvinen, Petri

    (ETLA, The Research Institute of the Finnish Economy, Helsinki, Finland)

Abstract

This paper explores offshoring of firms’ research and development functions. Our analysis employs a previously untapped and unique Eurostat International Sourcing Survey. The results are easy to summarize. First, the magnitude of R&D offshoring is small. Second, a large majority of R&D is offshored within the en-terprise group, in contrast to offshoring outside of the enterprise group. Third, most of R&D offshoring from Europe is directed to high-income European countries, not so to low-cost countries in Europe, China, or India. Fourth, R&D jobs do have been lost from offshoring; however, the negative employment impact has been moderate. But the Eurostat International Sourcing Survey does not allow entangling the full net employment effect of R&D offshoring, which could be either negative or positive.

Suggested Citation

  • Tuhkuri, Joonas & Lööf, Hans & Mohammadi, Ali & Rouvinen, Petri, 2016. "Offshoring R&D," Working Paper Series in Economics and Institutions of Innovation 439, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0439
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    • Tuhkuri, Joonas & Lööf, Hans & Mohammadi, Ali & Rouvinen, Petri, 2016. "Offshoring R&D," ETLA Reports 52, The Research Institute of the Finnish Economy.

    References listed on IDEAS

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    Cited by:

    1. Tuhkuri, Joonas, 2016. "Globalization Threatens One Quarter of Finnish Employment," ETLA Brief 46, The Research Institute of the Finnish Economy.

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    More about this item

    Keywords

    R&D; offshoring; outsourcing; innovation; product development;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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