GEP Research Paper 09/04
Drivers of the Offshore Outsourcing of R&D: Empirical Evidence from French Manufacturers
Liza Jabbour and Maria Pluvia Zuniga
Summary
This paper investigates the drivers of offshore outsourcing of R&D activities by French manufacturing firms. It shows that French firms engaged in the offshore outsourcing of R&D are outward oriented essentially through exports. Further, technological sourcing seems to be leading this phenomenon more than cost-opportunities motivations.
Abstract
The pace of technological change and the challenges faced by companies to remain competitive in global markets have contributed to a global expansion of R&D transactions. This paper shows that French companies engaged in the offshore outsourcing of R&D are outward oriented essentially through exports. Further, single unit companies seem more active in this type of R&D transaction than companies belonging to a group. These findings suggest a stronger integration of small and medium size exporting companies into international networks of innovation. Technological sourcing seems to be leading this phenomenon more than cost-opportunities motivations.
JEL classification: L23; L24 ; O31; O32
Keywords: R&D Outsourcing, Offshore of Research and Development Activities, Globalization.
Issued in January 2009
The paper is available in PDF format