%0 Journal Article
%A García Vega, María
%A Huergo, Elena
%T Determinants of International R&D Outsourcing: The Role of Trade
%D 2011
%@ 1363-6669
%U https://hdl.handle.net/20.500.14352/45128
%X This paper investigates the determinants of international R&D outsourcing, in particular the role of trade. We construct a monopolistic competition model with heterogeneous firms where outsourcing increases a firm’s fixed transaction as well as its productivity. Financial constraints affect the decision to outsource R&D more to non-exporters than to exporters. In contrast, exporters are more sensitive to a lack of information because they have higher losses when there is technology leakage. We test these predictions using a panel database of Spanish companies. The results highlight the relevance of information in competitive markets, and the role of trade to induce companies to engage in other globalization strategies.
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