The Impact of Overseas R&D on Domestic R&D Employment

This chapter uses surveys of Finnish firms to test three hypotheses regarding the offshoring of R&D: (1) relocated R&D replaces domestic R&D; (2) the relation between R&D offshoring and employment varies by offshoring channel; and (3) the relation between R&D offshoring and domestic R&D employment varies by industry. Section 2 starts by briefly reviewing the literature on which the hypotheses are based. Section 3 describes the survey data and lists the sample properties. Section 4 describes the methodology. Section 5 presents the econometric results and section 6 concludes