Offshoring High-Skilled Jobs: EU Multinationals and Domestic Employment of Inventors

28 Pages Posted: 1 Mar 2012

See all articles by Laura Abramovsky

Laura Abramovsky

Institute for Fiscal Studies (IFS)

Rachel Griffith

Institute for Fiscal Studies (IFS); University of Manchester; Centre for Economic Policy Research (CEPR)

Helen Miller

Institute for Fiscal Studies (IFS)

Date Written: February 2012

Abstract

The research activities of multinational firms is increasingly mobile raising concerns about displacement of high-skilled employment in headquarter countries. We estimate of the impact offshoring inventors has on firms' use of inventors at home using within firm variation across industries. We use a instrumental variables to tackle possible endogeneity and identify robust bounds on the estimate. We cannot rule out the possibility that foreign inventors displace home inventors, but our main result suggests that a 10% increase in the number of inventors abroad results in a 1.9% increase in the number of inventors at home.

Keywords: innovation and patents, multinational firms, offshoring

JEL Classification: F21, F23, H30, O30

Suggested Citation

Abramovsky, Laura and Griffith, Rachel and Miller, Helen, Offshoring High-Skilled Jobs: EU Multinationals and Domestic Employment of Inventors (February 2012). CEPR Discussion Paper No. DP8837. Available at SSRN: https://ssrn.com/abstract=2013828

Laura Abramovsky (Contact Author)

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

Rachel Griffith

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London WC1E 7AE
United Kingdom
+44 20 7291 4800 (Phone)
+44 20 7323 4780 (Fax)

University of Manchester ( email )

Arthur Lewis Building
Oxford Road
Manchester, M13 9PL
United Kingdom

HOME PAGE: http://www.ifs.org.uk/people/profile?id=37

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Helen Miller

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

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