The impact of R&D offshoring on the home knowledge production of OECD investing regions
Authors: DAgostino, Lorena M.; Laursen, Keld; Santangelo, Grazia D.
Source: Journal of Economic Geography, Volume 13, Number 1, 14 January 2013 , pp. 145-175(31)
Publisher: Oxford University Press
Abstract:We investigate the effect of research and development (R&D) offshoring from high-income regions to prominent emerging economies. Specifically, we examine whether there is a complementary relationship between a regions home and foreign investments in R&D that affects homes regional knowledge production. Using a theoretical framework based on economic geography and the literature on international knowledge sourcing, we conjecture that high-income regions would have a comparative advantage in high-tech R&D, while emerging economies would have an advantage in medium/low R&D. Complementarity should obtain when the comparative advantages of the geographical areas are utilized. We find overall empirical support for this prediction.
Document Type: Research Article
Publication date: 2013-01-14
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