Determinants of Internal versus External R&D Offshoring: Evidence from Spanish Firms

34 Pages Posted: 28 Jan 2015

See all articles by Mery Tamayo

Mery Tamayo

Universidad EAFIT

Elena Huergo

Universidad Complutense de Madrid (UCM) - Faculty of Economics and Business Administration; Universidad Complutense de Madrid (UCM) - Instituto Complutense de Análisis Económico | ICAE

Multiple version iconThere are 2 versions of this paper

Date Written: December 15, 2014

Abstract

This paper analyzes the determinants of R&D offshoring of Spanish firms using information from the Panel of Technological Innovation. We find that being an exporter, continuous R&D engagement, applying for patents, being a subsidiary, and firm size are factors that positively affect the decision to offshore R&D. In addition, we obtain that the factors that influence this decision for firms that belong to a business group differ depending on whether the firm purchases R&D services within the group or through the market: the lack of information is an obstacle relatively less important for internal R&D offshoring than for external R&D offshoring, while a higher degree of importance assigned to institutional and market sources of information for innovation as compared to internal sources increases the probability of R&D offshoring through the market.

Keywords: R&D offshoring, firms’ strategies, obstacles to innovation, independent firms, subsidiaries

JEL Classification: L24, O32

Suggested Citation

Tamayo, Mery and Huergo, Elena and Huergo, Elena, Determinants of Internal versus External R&D Offshoring: Evidence from Spanish Firms (December 15, 2014). Center for Research in Economics and Finance (CIEF), Working Papers, No. 14-21, Available at SSRN: https://ssrn.com/abstract=2555802 or http://dx.doi.org/10.2139/ssrn.2555802

Mery Tamayo (Contact Author)

Universidad EAFIT ( email )

Carrera 49 N° 7 sur – 50
Bogotá, Antioquia 00000
Colombia

Elena Huergo

Universidad Complutense de Madrid (UCM) - Instituto Complutense de Análisis Económico | ICAE ( email )

Pozuelo, MADRID 28260
Spain

Universidad Complutense de Madrid (UCM) - Faculty of Economics and Business Administration ( email )

School of Business Administration
Somosaguas Campus
Madrid, Madrid 28223
Spain

Do you want regular updates from SSRN on Twitter?

Paper statistics

Downloads
29
Abstract Views
632
PlumX Metrics