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The impact of R&D offshoring on the home knowledge production of OECD investing regions
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The impact of R&D offshoring on the home knowledge production of OECD investing regions
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Journal Article
The impact of R&D offshoring on the home knowledge production of OECD investing regions
2013
Overview
We investigate the effect of research and development (R&D) offshoring from highincome regions to prominent emerging economies. Specifically, we examine whether there is a complementary relationship between a region’s home and foreign investments in R&D that affects home’s regional knowledge production. Using a theoretical framework based on economic geography and the literature on international knowledge sourcing, we conjecture that high-income regions would have a comparative advantage in high-tech R&D, while emerging economies would have an advantage in medium/low R&D. Complementarity should obtain when the comparative advantages of the geographical areas are utilized. We find overall empirical support for this prediction.
Publisher
OXFORD UNIVERSITY PRESS,University Press,Oxford Publishing Limited (England)
