NO. 180: Karpaty, Patrik. Tingvall, Patrik(2011) "Offshoring and Home Country R&D" 
Patrik Karpaty and Patrik Tingvall analyze how offshoring impacts domestic R&D and how these effects vary with respect to target region and type of firm.
Abstract
National concerns are sometimes raised against
offshoring of economic activities to other countries. While most of
the existing literature has focused on the effects on labor demand
and productivity the effects on domestic R&D have been
neglected. This is unfortunate since the decision to offshore
activities also includes R&D. We use unique and rich firm level
data for the Swedish manufacturing sector to analyze how offshoring
impacts domestic R&D and how these effects vary with respect to
target region and type of firm. The results suggest that offshoring
of production alter a firm's investments in R&D in Sweden and
that a negative impact on home country R&D is confined to
offshoring by non-multinationals and offshoring to Europe and EU15
countries.
Key Words: Offshoring; R&D; Manufacturing
sector; EU15 JEL Codes: C23; F16; F23; J23
Abstract: National concerns are sometimes
raised against offshoring of economic activities to other
countries. While most of the existing literature has focused on the
effects on labor demand and productivity the effects on domestic
R&D have been neglected. This is unfortunate since the decision
to offshore activities also includes R&D. We use unique and
rich firm level data for the Swedish manufacturing sector to
analyze how offshoring impacts domestic R&D and how these
effects vary with respect to target region and type of firm. The
results suggest that offshoring of production alter a firm's
investments in R&D in Sweden and that a negative impact on home
country R&D is confined to offshoring by non-multinationals and
offshoring to Europe and EU15 countries.
Key Words: Offshoring; R&D; Manufacturing
sector; EU15
JEL Codes: C23; F16; F23; J23
Full text
(pdf)