Outsourcing: Volume and Composition of R&D |
| |
| Authors: | Hamid Beladi Sugata Marjit Lei Yang |
| |
| Institution: | 1. The University of Texas at San Antonio, One UTSA Circle San Antonio, USA;2. Centre for Studies in Social Sciences, Calcutta R 1 Baishnabghata Patuli Township, India |
| |
| 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. |
| |
| Keywords: | |
|
|
