Domestic R&D Employment Effects of Offshoring R&D Tasks: Some Empirical Evidence from Finland

Ali-Yrkkö JyrkiDeschryvere Matthias

This study empirically explores whether R&D offshoring affects the domestic R&D employment at the firm level. Overall, the Finnish survey data suggest that the impact of R&D internationalization on domestic R&D employment depends on the mode of internationalization (in-house offshoring vs. offshore outsourcing vs. in-house expansion of R&D abroad). Moreover, manufacturing and service firms are found to be different when it comes to R&D internationalization and its domestic employment effects. In the manufacturing sector, especially in-house offshoring of R&D has a significant negative impact on the plan to increase R&D employment. But the relationship between the in-house expansion of R&D abroad and domestic R&D employment turns out to be complementary. In the service sector, it is in the first place offshore outsourcing of R&D that has a significant negative impact on the plan to increase R&D employment. A final result supports the view that R&D does not always follow production but that a strong location link between production and R&D does have a significant negative effect on the domestic R&D employment.

Publication info

Series
Discussion Papers no. 1163
Date
2008
Avainsanat
globalisaatio, kansainvälistyminen, ulkoistaminen, ulkomaille siirtäminen, työllisyys, tutkimus ja kehitys, uudelleensijoittuminen, kotimainen, kotimaa
Keywords
globalisation, internationalisation, outsourcing, offshoring, employment, tutkimus ja kehitys, spillovers, relocation, domestic, home-country
JEL
J6,J3
Pages
31
Price
10 €
Availability of print version
Language
English