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



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García Vega, María and Huergo, Elena (2011) Determinants of International R&D Outsourcing: The Role of Trade. Review of Development Economics, 15 (1). pp. 93-107. ISSN 1363-6669

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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:Article
Uncontrolled Keywords:R&D outsourcing, exporters, financial constraints, technology leakage
Subjects:Social sciences > Economics > World economy
Social sciences > Economics > Business enterprises
Social sciences > Economics > Industrial organization
JEL:F2, L24, O3
ID Code:39083
Deposited On:13 Sep 2016 09:05
Last Modified:19 Sep 2016 08:18

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