outsourcing of R&D

Innovation: Management, Policy & Practice

Volume 7, Issue 4, 2005
US offshore outsourcing of R&D: Accommodating firm and national competitiveness perspectives
Policy Debate

DOI:10.5172/impp.2005.7.4.351
Thomas A. Hemphilla
pages 351-356

Publishing models and article dates explained
Received: 27 Jul 2004
Accepted: 2 Nov 2004
Published online: 17 Dec 2014
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Summary
In the United States (US), the policy debate surrounding offshore outsourcing of ‘white collar’ service jobs, many of them high-paying, professional and technical positions, has recently focused on an area having potentially serious consequences for America’s long-term national competitiveness: the business strategy of off-shoring firm research and development (R&D) activities of critically important industries, such as information technology (IT) and pharmaceuticals. The author argues that, from a business perspective, an effective R&D offshore outsourcing strategy embraces an ‘Open Innovation’ approach, which emphasizes a careful balance between retaining core internal R&D capabilities while leveraging formal, collaborative technology relationships that enhance new product development and protect the corresponding intellectual property. US public policy complements this private sector strategy by establishing a foundation for improving the technological capabilities of the citizenry, restricting technology-sensitive areas from offshore outsourcing due to national security imperatives, and providing tax incentives for domestic R&D investment (and eliminating public financial incentives) for offshore outsourcing.

Why are companies offshoring innovation? The emerging global race for talent
作者:Lewin, AY (Lewin, Arie Y.)[ 1 ] ; Massini, S (Massini, Silvia)[ 2 ] ; Peeters, C (Peeters, Carine)[ 3 ]
JOURNAL OF INTERNATIONAL BUSINESS STUDIES
卷: 40  期: 6  頁碼: 901-925
DOI: 10.1057/jibs.2008.92
出版日期: AUG 2009
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摘要
This paper empirically studies determinants of decision by companies to offshore innovation activities. It uses survey data from the international Offshoring Research Network project to estimate the impact of managerial intentionality, past experience, and environmental factors on the probability of offshoring innovation projects. The results show that the emerging shortage of highly skilled science and engineering talent in the US and, more generally, the need to access qualified personnel are important explanatory factors for offshoring innovation decisions. Moreover, contrary to drivers of many other functions, labor arbitrage is less important than other forms of cost savings. The paper concludes with a discussion of the changing dynamics underlying offshoring of innovation activities, suggesting that companies are entering a global race for talent. Journal of International Business Studies (2009) 40, 901-925. doi: 10.1057/jibs.2008.92