Outsourcing: Volume and Composition of R&D

Hamid Beladi, Sugata Marjit, Lei Yang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

8 Citations (Scopus)

Abstract

This paper examines the impact of the outsourcing of production on the volume and composition of the home country's research and development (R&D). We find that outsourcing decreases the process R&D of the multinational firm in large markets when it only conducts process R&D (the substitution effect between outsourcing and process R&D). Outsourcing tends to emerge as a complementary factor to product development when the multinational firm conducts both product R&D and process R&D (the complementary effect between outsourcing and product R&D) under some conditions. This implies that international outsourcing has a different effect on product innovation and process innovation.
Original languageEnglish
Pages (from-to)828-840
Number of pages13
JournalReview of International Economics
Volume20
Issue number4
DOIs
Publication statusPublished - 1 Sep 2012

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

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