Download this Paper Open PDF in Browser

Outsourcing: Volume and Composition of R&D

20 Pages Posted: 7 Oct 2010 Last revised: 10 Oct 2010

Hamid Beladi

University of Texas at San Antonio - College of Business - Department of Economics

Sugata Marjit

Centre for Studies in Social Sciences, Calcutta; City University of Hong Kong (CityUHK) - Department of Economics & Finance

Lei Yang

Hong Kong Polytechnic University

Multiple version iconThere are 3 versions of this paper

Date Written: October 7, 2010

Abstract

This paper examines the impact of outsourcing of production on the volume and composition of home country’s research and development. We find that outsourcing decreases process R&D of the multinational firm in large markets when it only conducts process R&D (the substitution effect between outsourcing and process R&D). Outsourcing tends to emerge as a complementary factor to product development when the multinational firm conducts both product R&D and process R&D (the complementary effect between outsourcing and product R&D) under some conditions. This implies that international outsourcing has a different effect on product innovation and process innovation.

Keywords: Outsourcing, Product R&D, Process R&D

JEL Classification: D23, F12, L22, O31, O33

Suggested Citation

Beladi, Hamid and Marjit, Sugata and Yang, Lei, Outsourcing: Volume and Composition of R&D (October 7, 2010). Available at SSRN: https://ssrn.com/abstract=1688823 or http://dx.doi.org/10.2139/ssrn.1688823

Hamid Beladi

University of Texas at San Antonio - College of Business - Department of Economics ( email )

One UTSA Circle
P.O. Box 5636
San Antonio, TX 78249
United States
210-458-7038 (Phone)
210-458-7040 (Fax)

Sugata Marjit

Centre for Studies in Social Sciences, Calcutta ( email )

R 1, B.P. Township
Kolkata, West Bengal, India
Kolkata, West Bengal 700094
India

City University of Hong Kong (CityUHK) - Department of Economics & Finance ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

Lei Yang (Contact Author)

Hong Kong Polytechnic University ( email )

Hung Hom, Kowloon
Hong Kong
(852)34003457 (Phone)

Paper statistics

Downloads
44
Abstract Views
335