The role of international and domestic R&D outsourcing for firm innovation

Firms are increasingly outsourcing their high-tech services. Theory suggests that R&D outsourcing allows firms to specialize in core knowledge-intensive tasks, thereby increasing innovation, but R&D outsourcing may also undermine internal capabilities. Our goal is to empirically assess the r...

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Detalles Bibliográficos
Autores: García Vega, María, Huergo Orejas, Elena
Tipo de recurso: artículo
Fecha de publicación:2019
País:España
Institución:Universidad Complutense de Madrid (UCM)
Repositorio:Docta Complutense
Idioma:inglés
OAI Identifier:oai:docta.ucm.es:20.500.14352/12335
Acceso en línea:https://hdl.handle.net/20.500.14352/12335
Access Level:acceso abierto
Palabra clave:L25
O32
R&D outsourcing
Transaction cost economics
Innovation
International versus domestic outsourcing
Exporters
Desarrollo económico
Empresas
Economía industrial
5307.03 Modelos y Teorías del desarrollo Económico
5307.04 Estudios del desarrollo Económico
5311 Organización y Dirección de Empresas
Descripción
Sumario:Firms are increasingly outsourcing their high-tech services. Theory suggests that R&D outsourcing allows firms to specialize in core knowledge-intensive tasks, thereby increasing innovation, but R&D outsourcing may also undermine internal capabilities. Our goal is to empirically assess the relative importance of these two possibilities, distinguishing between national and international R&D outsourcing and firms’ exporting status. We examine R&D purchases of more than 10,000 Spanish firms for the period 2004-2014. We show that R&D outsourcing improves firm innovation. Product innovation rises mostly with domestic outsourcing, while process innovation increases with both domestic and international R&D outsourcing. In addition, we find that international outsourcing provides an extra premium, mostly for exporters. Our results contribute to a better understanding of how firms organize the production of knowledge and innovation.