Organization of R&D outsourcing: Asymmetric cross‐effects between locations

Garc�a-Vega, Mar�a; Huergo, Elena

Abstract

When companies acquire R&D from external national providers, would they benefit if they also acquired knowledge from foreign providers? And the other way around? These questions are important for the organization of firm knowledge-based activies and R&D governance. In this paper, we try to answer these questions by empirically examining the cross-effects of international and national R&D outsourcing to generate innovation. Using a panel database of about 10,000 Spanish firms, we show that there is asymmetry in the effectiveness of the combined adoption of R&D outsourcing locations: international R&D outsourcing reinforces national R&D outsourcing, but national outsourcing does not reinforce international outsourcing. Therefore, the order of adoption matters; i.e., on average, companies are more innovative if they acquire R&D first from external domestic providers and afterwards from foreign providers. We also find that the mechanism for these effects is related to organizational and management changes in sharing responsibilities and decision-making.

Citation

García-Vega, M., & Huergo, E. (2021). Organization of R&D outsourcing: Asymmetric cross‐effects between locations. Journal of Economics and Management Strategy, 30, 503-524. https://doi.org/10.1111/jems.12422

• Journal Article Type: Article
• Acceptance Date: Feb 13, 2021
• Online Publication Date: Mar 10, 2021
• Publication Date: 2021-10
• Deposit Date: Feb 15, 2021
• Publicly Available Date: Mar 11, 2023
• Journal: Journal of Economics & Management Strategy
• Print ISSN: 1058-6407
• Electronic ISSN: 1530-9134
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 30
• Article Number: 12422
• Pages: 503-524
• DOI: https://doi.org/10.1111/jems.12422
• Keywords: Management of Technology and Innovation; Strategy and Management; Economics and Econometrics; General Business, Management and Accounting
• Public URL: https://nottingham-repository.worktribe.com/output/5328896
• Publisher URL: https://onlinelibrary.wiley.com/doi/10.1111/jems.12422
• Additional Information: This is the peer reviewed version of the following article: García-Vega,, M., & Huergo,, E. (2021). Organization of R&D outsourcing: Asymmetric cross-effects between locations. J Econ Manage Strat. 30, 503– 524., which has been published in final form at https://doi.org/10.1111/jems.12422 This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.