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Determinants of International R&D Outsourcing: The Role of Trade

García Vega, María and Huergo Orejas, Elena (2008) Determinants of International R&D Outsourcing: The Role of Trade. [Working Paper or Technical Report] (Unpublished)

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Abstract

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
Series Name:UNSPECIFIED
Volume:UNSPECIFIED
Number:UNSPECIFIED
ID Code:9790
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Deposited On:12 Jan 2010 14:49
Last Modified:06 Feb 2014 08:31

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