Does R&D Offshoring Displace or Strengthen Knowledge Production at Home? Evidence from OECD Countries

Posted: 29 Jan 2009 Last revised: 1 Mar 2009

See all articles by Lucia Piscitello

Lucia Piscitello

Politecnico di Milano - Dipartimento di Ingegneria gestionale

Grazia D. Santangelo

Università degli Studi di Catania

Date Written: January 28, 2009

Abstract

This paper aims to investigate whether offshoring of R&D activity in fast-growing economies impacts on the knowledge creation of home investing countries, especially focusing on the effects on the sectoral focus/mix of knowledge production at home. In particular, the study develops an exploratory cross-country analysis focusing on OECD countries investing in BRICKST (Brazil, Russia, India, China, Korea, Singapore and Taiwan), by using a knowledge production function framework.

Our findings suggest a positive impact of R&D offshore in BRICKST on the knowledge production of home OECD investing countries. However, knowledge production at home seems to benefit from both domestic R&D as well as from R&D activities offshore in BRICKST as far as high-technology sectors are concerned, while in medium- and low-technology sectors it is primarily fed by innovative activity offshore in BRICKST.

Keywords: R&D offshoring, internationalization of R&D, knowledge production

Suggested Citation

Piscitello, Lucia and Santangelo, Grazia D., Does R&D Offshoring Displace or Strengthen Knowledge Production at Home? Evidence from OECD Countries (January 28, 2009). Available at SSRN: https://ssrn.com/abstract=1334115 or http://dx.doi.org/10.2139/ssrn.1334115

Lucia Piscitello

Politecnico di Milano - Dipartimento di Ingegneria gestionale ( email )

20113 Milan, Milano
Italy

HOME PAGE: http://www.dig.polimi.it/eng/comunita/cl.php?id=51

Grazia D. Santangelo (Contact Author)

Università degli Studi di Catania ( email )

Università degli Studi di Catania
Via V. Emanuele 8
Catania, Sicily 95128
Italy

HOME PAGE: http://www.fscpo.unict.it/docenti/prof.ssa_Santangelo.htm

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