García Vega, María and Huergo Orejas, Elena (2008) Determinants of International R&D Outsourcing: The Role of Trade. [Working Paper or Technical Report] (Unpublished)
Official URL: http://eprints.ucm.es/9790/
This paper investigates the determinants of international R&D outsourcing, in particular the role of trade. We construct a monopolistic competition model with heterogeneous firms where outsourcing increases a firm’s fixed transaction as well as its productivity. Financial constraints affect the decision to outsource R&D more to non-exporters than to exporters. In contrast, exporters are more sensitive to a lack of information because they have higher losses when there is technology leakage. We test these predictions using a panel database of Spanish companies. The results highlight the relevance of information in competitive markets, and the role of trade to induce companies to engage in other globalization strategies.
|Item Type:||Working Paper or Technical Report|
|Additional Information:||JEL Classification: F2, L24, O3|
|Uncontrolled Keywords:||R&D outsourcing, foreign locations, exporters, financial constraints, technology leakage.|
|Subjects:||Social sciences > Economics > World economy|
Social sciences > Economics > Industrial organization
Social sciences > Economics > Microeconomics
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|Deposited On:||12 Jan 2010 15:49|
|Last Modified:||29 Mar 2011 10:35|