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This paper explores offshoring of firms’ research and development functions. Our analysis employs a previously untapped and unique Eurostat International Sourcing Survey. The results are easy to summarize. First, the magnitude of R&D offshoring is small. Second, a large majority of R&D is...
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Workers have different abilities in research, development and innovation (R&D&I) activities. Firms have different … “prospects for innovation”. Innovation is facilitated by matching innovators, i.e. workers that are specialized in R&D&I to firms … with good prospects for innovation. Aggregate productivity growth requires that firms with the best prospects for …
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