6533b7dcfe1ef96bd127167e

RESEARCH PRODUCT

R&D Offshoring and the Productivity Growth of European Regions

Fabio PieriDavide Castellani

subject

Europe; Foreign investments; R&D offshoring; Regional productivity;Strategy and Managementjel:C23International tradeManagement Science and Operations ResearchPositive correlationjel:F23Management of Technology and Innovation0502 economics and businessEconomicsEconomic geographyForeign investments050207 economicsjel:O47ProductivityEconomic researchOffshoringbusiness.industry05 social sciencesInvestment (macroeconomics)Europejel:O52R&D O shoring Regional Productivity Foreign Investments EuropeR&D offshoring8. Economic growthTechnology transferR&D Offshoring; Regional Productivity; Foreign Investments; EuropeRegional productivityjel:R11business050203 business & management

description

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.