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Corporate decision-making in R&D outsourcing and the impact on internal R&D employment intensity

(2010) INDUSTRIAL AND CORPORATE CHANGE. 19(6). p.1741-1768
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Abstract
This article aims to assess whether firms’ strategies of R&D outsourcing determine changes in their internal R&D employment intensity. Four strategic decisions are investigated: to start, increase, decrease or stop outsourcing. It is found that internal R&D employment intensity decreases when firms decide to start, to increase, or to stop R&D outsourcing. However, this finding hides important differences according to the type and the location of the contractor. In general, firms prefer a mix of different types of contractors at different locations. Started outsourcing of R&D to research centers within the nation and increased R&D outsourcing to research centers within the region appear to decrease the internal R&D employment intensity. Decreasing outsourcing to national universities in another region also has a negative impact on internal R&D employment intensity. A corporate decision to stop R&D outsourcing to other firms within the nation but outside the region has a positive impact on the internal R&D employment intensity. The latter is the only effect that is not only statistically significant but is also substantial in magnitude.
Keywords
KNOWLEDGE, TECHNOLOGY, INNOVATION, EMPIRICAL-ANALYSIS, MANUFACTURING FIRMS, STRATEGIC MANAGEMENT, DEVELOPMENT COOPERATION, PERFORMANCE, SPILLOVERS, BOUNDARIES

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Citation

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Chicago
Teirlinck, Peter, Michel Dumont, and André Spithoven. 2010. “Corporate Decision-making in R&D Outsourcing and the Impact on Internal R&D Employment Intensity.” Industrial and Corporate Change 19 (6): 1741–1768.
APA
Teirlinck, P., Dumont, M., & Spithoven, A. (2010). Corporate decision-making in R&D outsourcing and the impact on internal R&D employment intensity. INDUSTRIAL AND CORPORATE CHANGE, 19(6), 1741–1768.
Vancouver
1.
Teirlinck P, Dumont M, Spithoven A. Corporate decision-making in R&D outsourcing and the impact on internal R&D employment intensity. INDUSTRIAL AND CORPORATE CHANGE. 2010;19(6):1741–68.
MLA
Teirlinck, Peter, Michel Dumont, and André Spithoven. “Corporate Decision-making in R&D Outsourcing and the Impact on Internal R&D Employment Intensity.” INDUSTRIAL AND CORPORATE CHANGE 19.6 (2010): 1741–1768. Print.
@article{1014704,
  abstract     = {This article aims to assess whether firms{\textquoteright} strategies of R\&D outsourcing determine changes in their internal R\&D employment intensity. Four strategic decisions are investigated: to start, increase, decrease or stop outsourcing. It is found that internal R\&D employment intensity decreases when firms decide to start, to increase, or to stop R\&D outsourcing. However, this finding hides important differences according to the type and the location of the contractor. In general, firms prefer a mix of different types of contractors at different locations. Started outsourcing of R\&D to research centers within the nation and increased R\&D outsourcing to research centers within the region appear to decrease the internal R\&D employment intensity. Decreasing outsourcing to national universities in another region also has a negative impact on internal R\&D employment intensity. A corporate decision to stop R\&D outsourcing to other firms within the nation but outside the region has a positive impact on the internal R\&D employment intensity. The latter is the only effect that is not only statistically significant but is also substantial in magnitude.},
  author       = {Teirlinck, Peter and Dumont, Michel and Spithoven, Andr{\'e}},
  issn         = {0960-6491},
  journal      = {INDUSTRIAL AND CORPORATE CHANGE},
  keyword      = {KNOWLEDGE,TECHNOLOGY,INNOVATION,EMPIRICAL-ANALYSIS,MANUFACTURING FIRMS,STRATEGIC MANAGEMENT,DEVELOPMENT COOPERATION,PERFORMANCE,SPILLOVERS,BOUNDARIES},
  language     = {eng},
  number       = {6},
  pages        = {1741--1768},
  title        = {Corporate decision-making in R\&D outsourcing and the impact on internal R\&D employment intensity},
  url          = {http://dx.doi.org/10.1093/icc/dtq038},
  volume       = {19},
  year         = {2010},
}

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