Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/45139 
Year of Publication: 
2008
Series/Report no.: 
WIDER Research Paper No. 2008/100
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
The paper builds a framework for the analysis of research and development (R&D) offshoring and outsourcing that encompasses several strands of the economics literature. It surveys the predictions from key theoretical models advanced in the literature on international trade, foreign direct investment (FDI), economic geography, and innovation, and compares these with empirical evidence, at both country and firm level. The review first analyses the drivers and patterns of R&D (re)location, and the role played by knowledge spillovers in shaping such phenomena. It then looks at multinational firms' strategic behaviour vis-à-vis the implications of their locational choices for both home and host countries, and accounts for the time dimension of such decisions. Finally it addresses the impact that north-south and south-north R&D flows might have on growth and development, and on the innovation capability of countries.
Subjects: 
research and development
R&D
offshoring
outsourcing
multinational firms
home country
host country
north-south
knowledge spillovers
JEL: 
F23
L2
O3
ISBN: 
978-92-9230-154-5
Document Type: 
Working Paper

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