Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/44546
Authors: 
Ali-Yrkkö, Jyrki
Deschryvere, Matthias
Year of Publication: 
2008
Series/Report no.: 
ETLA discussion paper 1163
Abstract: 
This study empirically explores whether R&D offshoring affects the domestic R&D employment at the firm level. Overall, the Finnish survey data suggest that the impact of R&D internationalization on domestic R&D employment depends on the mode of internationalization (in-house offshoring vs. offshore outsourcing vs. in-house expansion of R&D abroad). Moreover, manufacturing and service firms are found to be different when it comes to R&D internationalization and its domestic employment effects. In the manufacturing sector, especially in-house offshoring of R&D has a significant negative impact on the plan to increase R&D employment. But the relationship between the in-house expansion of R&D abroad and domestic R&D employment turns out to be complementary. In the service sector, it is in the first place offshore outsourcing of R&D that has a significant negative impact on the plan to increase R&D employment. A final result supports the view that R&D does not always follow production but that a strong location link between production and R&D does have a significant negative effect on the domestic R&D employment.
Subjects: 
globalization
internationalization
outsourcing offshoring
job loss
R&D
spillovers
research
relocation
domestic
home-country
JEL: 
J6
J3
Document Type: 
Working Paper

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