Skip to main content
SpringerLink
Log in

The neglected effects of R&D captive offshoring in emerging countries on the creation of knowledge at home

  • Published:
Economia e Politica Industriale Aims and scope Submit manuscript

Abstract

Research and Development (R&D) offshoring in emerging countries has increased greatly in the last decade. The literature on this topic has been mostly interested in the motivations and determinants, while the effects on home innovation have been less explored. Firms carry out most of their R&D at home and rely on a dispersed network of foreign R&D units embedded in different local contexts; however, although firms from advanced countries are the top investors in foreign R&D and emerging countries are top destinations, the effects of R&D captive offshoring in emerging countries on the creation of knowledge at home—i.e. on headquarter and home system of innovation in advanced countries—have been neglected. Based on the literature on the knowledge-based view of the firm and the reverse knowledge transfer (RKT), I discuss two possible effects, i.e. the “RKT-based division of labor” hypothesis and the “hollowing-out” hypothesis. I review the recent empirical evidence in support of either of the two hypotheses, and it emerges that positive effects are likely to occur, but also that there is a need for further empirical evidence.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Notes

  1. Offshoring is the allocation of activities usually performed at home to overseas locations through own subsidiaries (i.e. captive offshoring) or external providers (i.e. offshoring outsourcing) (Kedia and Mukherjee, 2009).

  2. Complementarity occurs when the marginal return of one activity increases as the amount of another activity increases (in this case, the two activities are home R&D expenditure and R&D offshoring).

References

  • Albertoni, F., & Elia, S. (2014). The global sourcing of business services: evidence from the offshoring research network survey. Economia e Politica Industriale, 41(2), 131–146.

    Google Scholar 

  • Ambos, T.C., & Ambos, B. (2009). The impact of distance on knowledge transfer effectiveness in multinational corporations. Journal of International Management, 15(1), 1–14. doi:10.1016/j.intman.2008.02.002.

    Google Scholar 

  • Ambos, T.C., Ambos, B., & Schlegelmilch, B.B. (2006). Learning from foreign subsidiaries: an empirical investigation of headquarters’ benefits from reverse knowledge transfers. International Business Review, 15(3), 294–312. doi:10.1016/j.ibusrev.2006.01.002.

    Google Scholar 

  • Ambos, B., & Schlegelmilch, B.B. (2003). The use of international R&D teams—an empirical investigation of selected contingency factors. Journal of World Business, 39(1), 37–48. doi:10.1016/j.jwb.2003.08.004.

    Google Scholar 

  • Amiti, M., & Wei, S.-J. (2005a). Service offshoring, productivity, and employment: evidence from the United States. IMF Working Paper, WP/05/238, 1–37.

  • Amiti, M., & Wei, S.J. (2005b). Fear of service outsourcing: is it justified? Economic Policy, 20(42), 308–347.

    Google Scholar 

  • Andersson, U., & Forsgren, M. (1996). Subsidiary embeddedness and control in the multinational corporation. International Business Review, 5(5), 487–508. doi:10.1016/0969-5931(96)00023-6.

    Google Scholar 

  • Arvanitis, S., & Hollenstein, H. (2011). How do different drivers of R&D investment in foreign locations affect domestic firm performance? An analysis based on Swiss panel micro data. Industrial and Corporate Change, 20(2), 605–640. doi:10.1093/icc/dtr006.

    Google Scholar 

  • Athukorala, P.-C., & Kohpaiboon, A. (2010). Globalization of R&D by US-based multinational enterprises. Research Policy, 39(10), 1335–1347. doi:10.1016/j.respol.2010.09.004.

    Google Scholar 

  • Audretsch, D.B., & Feldman, M.P. (1996). R&D spillovers and the geography of innovation and production. The American Economic Review, 86(3), 630–640.

    Google Scholar 

  • Bahree, M. (2008). Knitters without windows. http://www.forbes.com/global/2008/0929/060.html. Accessed 23 October 2014.

  • Bardhan, A.D., & Jaffee, D.M. (2005). Innovation, R&D and Offshoring. Fisher Center Research Reports.

  • Bartlett, C.A., & Ghoshal, S. (1989). The transnational solution. Boston: Harvard Business School.

    Google Scholar 

  • Becker, S.O., Ekholm, K., & Muendler, M.-A. (2013). Offshoring and the onshore composition of tasks and skills. Journal of International Economics, 90(1), 91–106. doi:10.1016/j.jinteco.2012.10.005.

    Google Scholar 

  • Belderbos, R., Leten, B., & Suzuki, S. (2013). How global is R&D? Firm-level determinants of home-country bias in R&D. Journal of International Business Studies, 44(8), 765–786. doi:10.1057/jibs.2013.33.

    Google Scholar 

  • Birkinshaw, J., & Hood, N. (1998). Multinational subsidiary evolution: capability and charter change in foreign-owned subsidiary companies. The Academy of Management Review, 23(4), 773–795. doi:10.5465/AMR.1998.1255638.

    Google Scholar 

  • Braczyk, H.-J., Cooke, P., & Heidenreich, M. (1998). Regional innovation systems: The role of governance in a globalised world. London: Routledge.

    Google Scholar 

  • Cantwell, J.A. (1989). Technological innovation and multinational corporations. Oxford: Blackwell.

    Google Scholar 

  • Cantwell, J.A. (1995). The globalisation of technology: what remains of the product cycle model? Cambridge. Journal of Economics, 19(1), 155–174.

    Google Scholar 

  • Cantwell, J.A., & Iammarino, S. (2003). Multinational corporations and European regional systems of innovation. London: Routledge.

    Google Scholar 

  • Cantwell, J.A., & Mudambi, R. (2005). MNE competence-creating subsidiary mandates. Strategic Management Journal, 26(12), 1109–1128. doi:10.1002/smj.497.

    Google Scholar 

  • Cantwell, J.A., & Santangelo, G.D. (1999). The frontier of international technology networks: sourcing abroad the most highly tacit capabilities. Information Economics and Policy, 11(1), 101–123. doi:10.1016/S0167-6245(99)00005-0.

    Google Scholar 

  • Cantwell, J.A., & Santangelo, G.D. (2000). Capitalism, profits and innovation in the new techno-economic paradigm. J Evol Econ, 10(1–2), 131–157. doi:10.1007/s001910050009.

    Google Scholar 

  • Cassiman, B., Colombo, M.G., Garrone, P., & Veugelers, R. (2005). The impact of M&A on the R&D process: an empirical analysis of the role of technological- and market-relatedness. Research Policy, 34(2), 195–220. doi:10.1016/j.respol.2005.01.002.

    Google Scholar 

  • Castellani, D., & Pieri, F. (2013). R&D offshoring and the productivity growth of European regions. Research Policy, 42(9), 1581–1594. doi:10.1016/j.respol.2013.05.009.

    Google Scholar 

  • Castellani, D., & Zanfei, A. (2006). Multinational firms, innovation and productivity. Cheltenham: Edward Elgar.

    Google Scholar 

  • Castelli, C., & Castellani, D. (2013). The internationalisation of R&D: sectoral and geographic patterns of cross-border investments. Economia e Politica Industriale, 1, 127–143. doi:10.3280/POLI2013-001006.

    Google Scholar 

  • Chung, W., & Alcacer, J. (2002). Knowledge seeking and location choice of foreign direct investment in the United States. Management Science, 48(12), 1534–1554. doi:10.1287/mnsc.48.12.1534.440.

    Google Scholar 

  • Ciabuschi, F., Martín Martín, O., & Ståhl, B. (2010). Headquarters’ influence on knowledge transfer performance. Management International Review, 50(4), 471–491. doi:10.1007/s11575-010-0042-3.

    Google Scholar 

  • Cohen, W.M., & Levinthal, D.A. (1990). Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–152.

    Google Scholar 

  • Contractor, F.J., Kumar, V., Kundu, S.K., & Pedersen, T. (2010). Reconceptualizing the firm in a world of outsourcing and offshoring: the organizational and geographical relocation of high-value company functions. Journal of Management Studies, 47(8), 1417–1433. doi:10.1111/j.1467-6486.2010.00945.x.

    Google Scholar 

  • Cozza, C., & Zanfei, A. (2014). The cross border R&D activity of Italian business firms. Economia e Politica Industriale, 41(3), 39–64.

    Google Scholar 

  • Crinò, R. (2010). Employment effects of service offshoring: evidence from matched firms. Economics Letters, 107(2), 253–256.

    Google Scholar 

  • Crinò, R. (2013). Service offshoring and labor demand in Europe. In A. Bhardan, D. Jaffee, & C. Kroll (Eds.), Oxford Handbook of Global Employment and Offshoring. New York: Oxford University Press.

    Google Scholar 

  • Cusmano, L., Mancusi, M.L., & Morrison, A. (2009). Innovation and the geographical and organisational dimensions of outsourcing: evidence from Italian firm-level data. Structural Change and Economic Dynamics, 20(3), 183–195. doi:10.1016/j.strueco.2009.02.001.

    Google Scholar 

  • Dachs, B., Ebersberger, B., Kinkel, S., & Som, O. (2015). The Effects of Production Offshoring on R&D and Innovation in the Home Country. Economia e Politica Industriale, 1.

  • D’Agostino, L.M., Laursen, K., & Santangelo, G.D. (2013). The impact of R&D offshoring on the home knowledge production of OECD investing regions. Journal of Economic Geography, 13(1), 145–175. doi:10.1093/jeg/LBS012.

    Google Scholar 

  • D’Agostino, L.M., & Santangelo, G.D. (2012a). Do overseas R&D laboratories in emerging markets contribute to home knowledge creation? Management International Review, 52(2), 251–273. doi:10.1007/s11575-012-0135-2.

    Google Scholar 

  • D’Agostino, L.M., & Santangelo, G.D. (2012b). The global fragmentation of R&D activities: the home region perspective. DRUID Working Papers 12–06.

  • Demirbag, M., & Glaister, K.W. (2010). Factors determining offshore location choice for R&D projects: a comparative study of developed and emerging regions. Journal of Management Studies, 47(8), 1534–1560. doi:10.1111/j.1467-6486.2010.00948.x.

    Google Scholar 

  • Di Minin, A., & Bianchi, M. (2011). Safe nests in global nets: internationalization and appropriability of R&D in wireless telecom. Journal of International Business Studies, 42(7), 910–934. doi:10.1057/jibs.2011.16.

    Google Scholar 

  • Doh, J.P. (2005). Offshore outsourcing: implications for international business and strategic management theory and practice. Journal of Management Studies, 42(3), 695–704. doi:10.1111/j.1467-6486.2005.00515.x.

    Google Scholar 

  • Doh, J.P., Bunyaratavej, K., & Hahn, E.D. (2008). Separable but not equal: the location determinants of discrete services offshoring activities. Journal of International Business Studies, 40(6), 926–943. doi:10.1057/jibs.2008.89.

    Google Scholar 

  • Dunning, J.H. (1977). Trade, location of economic activity and the MNE: a search for an eclectic approach. In B. Ohlin, P.O. Hesselborn, & P.M. Wijkman (Eds.), The international allocation of economic activity (pp. 395–431). Basingstoke: Macmillan.

    Google Scholar 

  • Dunning, J.H. (1980). Explaining changing patterns of international production: in defence of the eclectic theory. Oxford Bulletin of Economics and Statistics, 41(4), 269–295. doi:10.1111/j.1468-0084.1979.mp41004003.x.

    Google Scholar 

  • Dunning, J.H. (1998). Location and the multinational enterprise: a neglected factor? Journal of International Business Studies, 29(1), 45–66. doi:10.1057/jibs.2008.75.

    Google Scholar 

  • Dunning, J.H., & Lundan, S.M. (2009). The internationalization of corporate R&D: a review of the evidence and some policy implications for home countries. Review of Policy Research, 26(1–2), 13–33. doi:10.1111/j.1541-1338.2008.00367.x.

    Google Scholar 

  • Dunning, J.H., & Narula, R. (1995). The R&D activities of foreign firms in the United States. International Studies of Management and Organisation, 25(1–2), 39–73.

    Google Scholar 

  • Edler, J., Meyer-Krahmer, F., & Reger, G. (2002). Changes in the strategic management of technology: results of a global benchmarking study. R&D Management, 32(2), 149–164.

    Google Scholar 

  • Filippaios, F., Papanastassiou, M., Pearce, R.D., & Rama, R. (2009). New forms of organisation and R&D internationalisation among the world’s 100 largest food and beverages multinationals. Research Policy, 38(6), 1032–1043. doi:10.1016/j.respol.2009.01.024.

    Google Scholar 

  • Forsgren, M., Holm, U., & Johanson, J. (2005). Managing the embedded multinational: A business network view. Cheltenham: Edward Elgar.

    Google Scholar 

  • Frost, T.S., & Zhou, C. (2005). R&D co-practice and ‘reverse’ knowledge integration in multinational firms. Journal of International Business Studies, 36(6), 676–687. doi:10.1057/palgrave.jibs.8400168.

    Google Scholar 

  • Gassmann, O., & Han, Z. (2004). Motivations and barriers of foreign R&D activities in China. R&D Management, 34(4), 423–437. doi:10.1111/j.1467-9310.2004.00350.x.

    Google Scholar 

  • Gauselmann, A. (2014). Determinants of knowledge exchange between foreign and domestic enterprises in European post-transition economies. Economia e Politica Industriale 4.

  • Gertler, M.S. (2003). Tacit knowledge and the economic geography of context, or The undefinable tacitness of being (there). Journal of Economic Geography, 3(1), 75–99. doi:10.1093/jeg/3.1.75.

    Google Scholar 

  • Govindarajan, V., & Ramamurti, R. (2011). Reverse innovation, emerging markets, and global strategy. Global Strategy Journal, 1(3–4), 191–205. doi:10.1002/gsj.23.

    Google Scholar 

  • Govindarajan, V., & Trimble, C. (2012). Reverse innovation: a global growth strategy that could pre-empt disruption at home. Strategy & Leadership, 40(5), 5–11. doi:10.1108/10878571211257122.

    Google Scholar 

  • Gupta, A.K., & Govindarajan, V. (2000). Knowledge flows within multinational corporations. Strategic Management Journal, 21(4), 473–496. doi:10.1002/(SICI)1097-0266(200004)21:4<473:AID-SMJ84>3.0.CO;2-I.

    Google Scholar 

  • Hakanson, L., & Nobel, R. (2001). Organizational characteristics and reverse technology transfer. Management International Review, 41(4), 395.

    Google Scholar 

  • Hegde, D., & Hicks, D. (2008). The maturation of global corporate R&D: evidence from the activity of U.S. foreign subsidiaries. Research Policy, 37(3), 390–406. doi:10.1016/j.respol.2007.12.004.

    Google Scholar 

  • Hijzen, A., & Swaim, P. (2007). Does offshoring reduce industry employment? National Institute Economic Review, 201(1), 86–96.

    Google Scholar 

  • Ito, B., & Wakasugi, R. (2007). What factors determine the mode of overseas R&D by multinationals? Empirical evidence. Research Policy, 36(8), 1275–1287. doi:10.1016/j.respol.2007.04.011.

    Google Scholar 

  • Jensen, P.D.Ø. (2009). A learning perspective on the offshoring of advanced services. Journal of International Management, 15(2), 181–193. doi:10.1016/j.intman.2008.06.004.

    Google Scholar 

  • Jensen, P.D.Ø. (2012). A passage to India: a dual case study of activities, processes and resources in offshore outsourcing of advanced services. Journal of World Business, 47(2), 311–326. doi:10.1016/j.jwb.2011.04.018.

    Google Scholar 

  • Jensen, P.D.Ø., & Pedersen, T. (2011). The economic geography of offshoring: the fit between activities and local context. Journal of Management Studies, 48(2), 352–372. doi:10.1111/j.1467-6486.2010.00967.x.

    Google Scholar 

  • Johanson, J., & Vahlne, J.-E. (2009). The Uppsala internationalization process model revisited: from liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9), 1411–1431.

    Google Scholar 

  • Kedia, B.L., & Mukherjee, D. (2009). Understanding offshoring: a research framework based on disintegration, location and externalization advantages. Journal of World Business, 44(3), 250–261. doi:10.1016/j.jwb.2008.08.005.

    Google Scholar 

  • Kogut, B., & Zander, U. (1992). Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3(3), 383–397. doi:10.1287/orsc.3.3.383.

    Google Scholar 

  • Kogut, B., & Zander, U. (1993). Knowledge of the firm and the evolutionary theory of the multinational corporation. Journal of International Business Studies, 24(4), 625–646. doi:10.1057/palgrave.jibs.8490248.

    Google Scholar 

  • Kostova, T. (1999). Transnational transfer of strategic organizational practices: a contextual perspective. Academy of Management Review, 24(2), 308–324. doi:10.5465/amr.1999.1893938.

    Google Scholar 

  • Kotabe, M. (1989). “Hollowing-out” of US multinationals and their global competitiveness: an intrafirm perspective. Journal of Business Research, 19(1), 1–15. doi:10.1016/0148-2963(89)90037-4.

    Google Scholar 

  • Kotabe, M. (1990). The relationship between offshore sourcing and innovativeness of US multinational firms: an empirical investigation. Journal of International Business Studies, 21(4), 623–638. doi:10.1057/palgrave.jibs.8490344.

    Google Scholar 

  • Kotabe, M., Dunlap-Hinkler, D., Parente, R., & Mishra, H.A. (2007). Determinants of cross-national knowledge transfer and its effect on firm innovation. Journal of International Business Studies, 38(2), 259–282.

    Google Scholar 

  • Kotabe, M., Mol, M., & Ketkar, S. (2008). An evolutionary stage model of outsourcing and competence destruction: a triad comparison of the consumer electronics industry. Management International Review, 48(1), 65–94. doi:10.1007/s11575-008-0004-1.

    Google Scholar 

  • Kotabe, M., & Swan, K.S. (1994). Offshore sourcing: reaction, maturation, and consolidation of US multinationals. Journal of International Business Studies, 25(1), 115–140. doi:10.1057/palgrave.jibs.8490195.

    Google Scholar 

  • Kuemmerle, W. (1999a). The drivers of foreign direct investment into research and development: an empirical investigation. Journal of International Business Strudies, 30(1), 1–24.

    Google Scholar 

  • Kuemmerle, W. (1999b). Foreign direct investment in industrial research in the pharmaceutical and electronics industries—results from a survey of multinational firms. Research Policy, 28(2–3), 179–193. doi:10.1016/S0048-7333(98)00110-3.

    Google Scholar 

  • Kumar, N. (1996). Intellectual property protection, market orientation and location of overseas R&D activities by multinational enterprises. World Development, 24(4), 673–688. doi:10.1016/0305-750X(95)00168-C.

    Google Scholar 

  • Kumar, N. (2001). Determinants of location of overseas R&D activity of multinational enterprises: the case of US and Japanese corporations. Research Policy, 30(1), 159–174. doi:10.1016/S0048-7333(99)00102-X.

    Google Scholar 

  • Kumar, N. (2013). Managing reverse knowledge flow in multinational corporations. Journal of Knowledge Management, 17(5), 695–708. doi:10.1108/JKM-02-2013-0062.

    Google Scholar 

  • Le Bas, C., & Sierra, C. (2002). ‘Location versus home country advantages’ in R&D activities: some further results on multinationals’ locational strategies. Research Policy, 31(4), 589–609. doi:10.1016/S0048-7333(01)00128-7.

    Google Scholar 

  • Levin, D.Z., & Cross, R. (2004). The strength of weak ties you can trust: the mediating role of trust in effective knowledge transfer. Management Science, 50(11), 1477–1490. doi:10.1287/mnsc.1030.0136.

    Google Scholar 

  • Lewin, A.Y., & Couto, V. (2006). Next generation offshoring: the globalization of innovation. Durham/Chicago: Duke University, The Fuqua School of Business/Booz Allen Hamilton Inc.

  • Lewin, A., Massini, S., & Peeters, C. (2009). Why are companies offshoring innovation? The emerging global race of talent. Journal of International Business Studies, 40(6), 901–925. doi:10.1057/jibs.2008.92.

    Google Scholar 

  • Li, J., & Xie, Z. (2011). Global R&D strategies in an emerging economy: the development and protection of technological competencies. European Management Review, 8(3), 153–164. doi:10.1111/j.1740-4762.2011.01013.x.

    Google Scholar 

  • Lieberman, J.I. (2004). Offshore outsourcing and American’s competitive edge: losing out in the high technology R&D and services sectors. White paper by Office of Senator.

  • Lundvall, B.-Å. (1992). National systems of innovation: towards a theory of innovation and interactive learning. London: Pinter.

    Google Scholar 

  • Luo, Y. (2001). Determinants of entry in an emerging economy: a multilevel approach. Journal of Management Studies, 38(3), 443–472. doi:10.1111/1467-6486.00244.

    Google Scholar 

  • Manning, S., Massini, S., & Lewin, A.Y. (2008). A dynamic perspective on next-generation offshoring: the global sourcing of science and engineering talent. Academy of Management Perspectives, 22(3), 35–54. doi:10.5465/AMP.2008.34587994.

    Google Scholar 

  • Meyer, K.E. (2004). Perspectives on multinational enterprises in emerging economies. Journal of International Business Studies, 35(4), 259–276.

    Google Scholar 

  • Meyer, K.E., Mudambi, R., & Narula, R. (2011). Multinational enterprises and local contexts: the opportunities and challenges of multiple embeddedness. Journal of Management Studies, 48(2), 235–252. doi:10.1111/j.1467-6486.2010.00968.x.

    Google Scholar 

  • Michailova, S., & Mustaffa, Z. (2012). Subsidiary knowledge flows in multinational corporations: research accomplishments, gaps, and opportunities. Journal of World Business, 47(3), 383–396. doi:10.1016/j.jwb.2011.05.006.

    Google Scholar 

  • Mihalache, O.R., Jansen, J.J., Van Den Bosch, F.A., & Volberda, H.W. (2012). Offshoring and firm innovation: the moderating role of top management team attributes. Strategic Management Journal, 33(13), 1480–1498.

    Google Scholar 

  • Montresor, S., & Vezzani, A. (2015). On the R&D giants’ shoulders. Do FDI help to stand on them? Economia e Politica Industriale, 1.

  • Mudambi, R. (2008). Location, control and innovation in knowledge-intensive industries. Journal of Economic Geography, 8, 699–725.

    Google Scholar 

  • Mudambi, R., & Venzin, M. (2010). The strategic nexus of offshoring and outsourcing decisions. Journal of Management Studies, 47(8), 1510–1533. doi:10.1111/j.1467-6486.2010.00947.x.

    Google Scholar 

  • Nieto, M.J., & Rodriguez, A. (2011). Offshoring of R&D: looking abroad to improve innovation performance. Journal of International Business Studies, 42(3), 345–361. doi:10.1057/jibs.2010.59.

    Google Scholar 

  • Odagiri, H., & Yasuda, H. (1996). The determinants of overseas R&D by Japanese firms: an empirical study at the industry and company levels. Research Policy, 25(7), 1059–1079. doi:10.1016/S0048-7333(96)00892-X.

    Google Scholar 

  • Patel, P., & Pavitt, K.L.R. (1991). Large firms in the production of the world’s technology: an important case of non-globalisation. Journal of International Business Studies, 22(1), 1–21. doi:10.1057/palgrave.jibs.8490289.

    Google Scholar 

  • Patel, P., & Vega, M. (1999). Patterns of internationalisation of corporate technology: location vs. home country advantages. Research Policy, 28(2–3), 145–155. doi:10.1016/S0048-7333(98)00117-6.

    Google Scholar 

  • Pearce, R.D. (1999). Decentralised R&D and strategic competitiveness: globalised approaches to generation and use of technology in multinational enterprises (MNEs). Research Policy, 28(2–3), 157–178. doi:10.1016/S0048-7333(98)00115-2.

    Google Scholar 

  • Pearce, R.D., & Papanastassiou, M. (1999). Overseas R&D and the strategic evolution of MNEs: evidence from laboratories in the UK. Research Policy, 28(1), 23–41. doi:10.1016/S0048-7333(98)00104-8.

    Google Scholar 

  • Pearce, R.D., & Singh, S. (1992). Globalizing research and development. Basingstoke: Palgrave Macmillan.

    Google Scholar 

  • Phene, A., & Almeida, P. (2008). Innovation in multinational subsidiaries: the role of knowledge assimilation and subsidiary capabilities. Journal of International Business Studies, 39(5), 901–919. doi:10.1057/palgrave.jibs.8400383.

    Google Scholar 

  • Piscitello, L., & Santangelo, G.D. (2010). Does R&D offshoring displace or strengthen knowledge production at home? Evidence from OECD countries. In F.J. Contractor, V. Kumar, S. Kundu, & T. Pedersen (Eds.), Outsourcing and offshoring of business activities. Cambridge: Cambridge University Press.

    Google Scholar 

  • Porter, M.E. (1990). The competitive advantage of nations. NY: Free Press.

    Google Scholar 

  • Rabbiosi, L., & Santangelo, G.D. (2013). Parent company benefits from reverse knowledge transfer: the role of the liability of newness in MNEs. Journal of World Business, 48(1), 160–170. doi:10.1016/j.jwb.2012.06.016.

    Google Scholar 

  • Rugman, A.M., & Verbeke, A. (1992). A note on the transnational solution and the transaction cost theory of multinational strategic management. Journal of International Business Studies, 23(4), 761–771.

    Google Scholar 

  • Sartor, M.A., & Beamish, P.W. (2014). Offshoring innovation to emerging markets: organizational control and informal institutional distance. Journal of International Business Studies,. doi:10.1057/jibs.2014.36.

    Google Scholar 

  • Schmeisser, B. (2013). A systematic review of literature on offshoring of value chain activities. Journal of International Management, 19(4), 390–406. doi:10.1016/j.intman.2013.03.011.

    Google Scholar 

  • Shimizutani, S., & Todo, Y. (2008). What determines overseas R&D activities? The case of Japanese multinational firms. Research Policy, 37(3), 530–544. doi:10.1016/j.respol.2007.11.010.

    Google Scholar 

  • Singh, J. (2008). Distributed R&D, cross-regional knowledge integration and quality of innovative output. Research Policy, 37(1), 77–96.

    Google Scholar 

  • Stiebale, J. (2013). The impact of cross-border mergers and acquisitions on the acquirers’ R&D: firm-level evidence. International Journal of Industrial Organization, 31(4), 307–321. doi:10.1016/j.ijindorg.2013.04.005.

    Google Scholar 

  • Subramaniam, M., & Venkatraman, N. (2001). Determinants of transnational new product development capability: testing the influence of transferring and deploying tacit overseas knowledge. Strategic Management Journal, 22(4), 359–378. doi:10.1002/smj.163.

    Google Scholar 

  • Swamidass, P.M., & Kotabe, M. (1993). Component sourcing strategies of multinationals: an empirical study of European and Japanese multinationals. Journal of International Business Studies, 24(1), 81–99. doi:10.1057/palgrave.jibs.8490226.

    Google Scholar 

  • Szulanski, G. (1996). Exploring internal stickiness: impediments to the transfer of best practice within the firm. Strategic Management Journal, 17(S2), 27–43. doi:10.1002/smj.4250171105.

    Google Scholar 

  • Teece, D.J. (1987). Capturing value from technological innovation: Integration, strategic partnering, and licensing decisions. In B.R. Guile & H. Brooks (Eds.), Technology and global industry. Washington, DC: National Academy Press.

    Google Scholar 

  • Thursby, J.G., & Thursby, M.C. (2006). Here or There? a survey of factors in multinational R&D location: report to the Government/University/Industry research roundtable. Washington, DC: National Academy Press.

  • Todo, Y., & Shimizutani, S. (2008). Overseas R&D activities and home productivity growth: evidence from Japanese firm-level data. The Journal of Industrial Economics, 56(4), 752–777. doi:10.1111/j.1467-6451.2008.00363.x.

    Google Scholar 

  • Tsai, W. (2002). Social structure of “coopetition” within a multiunit organization: coordination, competition, and intraorganizational knowledge sharing. Organization Science, 13(2), 179–190. doi:10.1287/orsc.13.2.179.536.

    Google Scholar 

  • Vernon, R. (1966). International investment and international trade in the product cycle. Quartely Journal of Economics, 80(2), 190–207.

    Google Scholar 

  • Von Zedtwitz, M. (2004). Managing foreign R&D laboratories in China. R&D Management, 34(4), 439–452. doi:10.1111/j.1467-9310.2004.00351.x.

    Google Scholar 

  • Von Zedtwitz, M., & Gassmann, O. (2002). Market versus technology drive in R&D internationalization: four different patterns of managing research and development. Research Policy, 31(4), 569–588. doi:10.1016/S0048-7333(01)00125-1.

    Google Scholar 

  • Welch, D.E., & Welch, L.S. (2008). The importance of language in international knowledge transfer. Management International Review, 48(3), 339–360. doi:10.1007/s11575-008-0019-7.

    Google Scholar 

  • Yang, Q., Mudambi, R., & Meyer, K. (2008). Conventional and reverse knowledge flows in multinational corporations. Journal of Management, 34(5), 882–902. doi:10.1177/0149206308321546.

    Google Scholar 

  • Zanfei, A. (2000). Transnational firms and the changing organisation of innovative activities. Cambridge Journal of Economics, 24(5), 515–542.

    Google Scholar 

  • Zhao, M. (2006). Conducting R&D in countries with weak intellectual property rights protection. Management Science, 52(8), 1185–1199. doi:10.1287/mnsc.1060.0516.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Political and Social Sciences, University of Catania, Via Vittorio Emanuele II, 8, 95131, Catania, Italy

    Lorena M. D’Agostino

Authors
  1. Lorena M. D’Agostino
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Lorena M. D’Agostino.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

D’Agostino, L.M. The neglected effects of R&D captive offshoring in emerging countries on the creation of knowledge at home. Econ Polit Ind 42, 61–91 (2015). https://doi.org/10.1007/s40812-014-0006-x

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s40812-014-0006-x

Keywords

JEL Classification

Search

Navigation