---
title: "Domestic R&D Employment Effects of Offshoring R&D Tasks: Some Empirical Evidence from Finland"
authors:
  - name: "Ali-Yrkkö, Jyrki"
    url: "https://www.etla.fi/henkilot/ali-yrkko-jyrki/"
    sameAs:
      - "https://orcid.org/0009-0005-2977-6878"
  - name: "Deschryvere, Matthias"
date_published: "2008-11-06"
series: "Discussion Papers no."
series_number: "1163"
jel_codes:
  - "J6"
  - "J3"
language: "en"
publisher: "ETLA Economic Research"
pdf_url: "https://www.etla.fi/wp-content/uploads/2012/09/dp1163.pdf"
keywords:
  - "globalisation"
  - "internationalisation"
  - "outsourcing"
  - "offshoring"
  - "employment"
  - "tutkimus ja kehitys"
  - "spillovers"
  - "relocation"
  - "domestic"
  - "home-country"
identifier: "https://www.etla.fi/julkaisut/id/Discussion-Papers-no.-1163"
---

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

**Published:** 2008-11-06  
**Categories:** Publikationer  
**Tags:** Diskussionsämnen, employment, globalisaatio  
**URL:** https://www.etla.fi/sv/publikationer/dp1163-en/

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.

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