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R&D offshoring and the productivity growth of European regions

Castellani, D. ORCID: and Pieri, F. (2013) R&D offshoring and the productivity growth of European regions. Research Policy, 42 (9). pp. 1581-1594. ISSN 0048-7333

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To link to this item DOI: 10.1016/j.respol.2013.05.009


The recent increase in R&D offshoring has raised fears that knowledge and competitiveness in advanced countries may be at risk of ‘hollowing out’. At the same time, economic research has stressed that this process is also likely to allow some reverse technology transfer and foster growth at home. This paper addresses this issue by investigating the extent to which R&D offshoring is associated with productivity dynamics of European regions. We find that offshoring regions have higher productivity growth, but this positive effect fades with the number of investment projects carried out abroad. A large and positive correlation emerges between the extent of R&D offshoring and the home region productivity growth, supporting the idea that carrying out R&D abroad strengthens European competitiveness.

Item Type:Article
Divisions:Henley Business School > International Business and Strategy
ID Code:43674

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