National scientific capacity and R&D offshoring

Abstract

This paper presents new evidence regarding the role of national scientific capacity in driving patterns of R&D offshoring using a larger and more comprehensive dataset than has hitherto been used and applying it in a gravity model framework. Our results unambiguously support the importance of inventor country scientific capacity in attracting offshored R&D. As expected, the home country's scientific capacity is also found to play a positive role. We find that in fact, on average, firms source technology from less technologically advanced nations, suggesting that firms offshore to access niche skills.