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| Type | Journal Article |
| Scope | Discipline-based scholarship |
| Title | Foreign direct investment and R&D-offshoring |
| Organization Unit | |
| Authors |
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| Item Subtype | Original Work |
| Refereed | Yes |
| Status | Published in final form |
| Language |
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| Journal Title | Oxford Economic Papers |
| Publisher | Oxford University Press |
| Geographical Reach | international |
| ISSN | 0030-7653 |
| Volume | 63 |
| Number | 1 |
| Page Range | 134 - 157 |
| Date | 2011 |
| Abstract Text | We analyse a two-country model of Foreign Direct Investment (FDI) and R&Doffshoring. In the basic model, two firms, each of which is originally situated in only one of the two countries, first decide whether to build a plant abroad. Then, they decide whether to relocate R&D activities offshore. Finally, they engage in product-market competition. In this model, FDI liberalization causes a relocation of R&D activities if intrafirm communication is sufficiently well developed, external spillovers are substantial, competition is not too strong and foreign markets are not too small. Surprisingly, such a relocation of R&D activities usually nevertheless increases domestic welfare. |
| Digital Object Identifier | 10.1093/oep/gpq024 |
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| Additional Information | This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Oxford Economic Papers following peer review. The definitive publisher-authenticated version Oxford Economic Papers, 63(1): 134-157, is available online at: http://oep.oxfordjournals.org/content/63/1/134.abstract. |