R&D Offshoring and the Productivity Growth of European Regions

47 Pages Posted: 13 Feb 2013

See all articles by Davide Castellani

Davide Castellani

Henley Business School

Fabio Pieri

University of Valencia

Date Written: October 15, 2012


The recent increase in R&D offshoring have 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 down with the number of investment projects carried out abroad. A large and positive correlation emerge between the extent of R&D offshoring and the home region productivity growth, supporting the idea that carrying out R&D abroad strengthen European competitiveness.

Keywords: R&D Offshoring, Regional Productivity, Foreign Investments

JEL Classification: C23, F23, O47, O52, R11

Suggested Citation

Castellani, Davide and Pieri, Fabio, R&D Offshoring and the Productivity Growth of European Regions (October 15, 2012). Centro Studi Luca d'Agliano Development Studies Working Paper No. 345, Available at SSRN: https://ssrn.com/abstract=2215585 or http://dx.doi.org/10.2139/ssrn.2215585

Davide Castellani (Contact Author)

Henley Business School ( email )

Reading, Berkshire RG6 6UD
United Kingdom

Fabio Pieri

University of Valencia ( email )

Avda. de los Naranjos s/n
Valencia, Valencia E-46022

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics