de Rassenfosse, GaetanThomson, Russell2020-01-312020-01-312020-01-312019-12-0110.1093/icc/dtz020https://infoscience.epfl.ch/handle/20.500.14299/165039WOS:000507606100007Offshoring research and development (R&D) commonly invokes concerns regarding the loss of high value jobs and a hollowing out of technological capabilities, but it can also benefit domestic firms by enabling them to tap into the global technological frontier. We study the effect of R&D offshoring on industrial productivity in the home country using industry-level data for 18 OECD countries over a 26-year period. Simultaneity between productivity and R&D offshoring is addressed by using foreign tax policy as an instrument for offshored R&D. We show that R&D offshoring contributes positively to productivity in the home country, irrespective of the host country destination.BusinessEconomicsManagementBusiness & Economicsoverseas researchmultinational-enterprisesfirm-levelsystem gmmtechnologypanelinternationalizationinvestmentlocationglobalizationtext::journal::journal article::research article