Understanding the Drivers of International R&D Outsourcing and the Role of Firm Age

Abstract

Due to increased globalization, fast information technology growth and trade liberalization over the last years, the tendency to outsource knowledge is becoming more important for firms as a strategy to nurture innovative activities. This paper contributes to the literature by studying the main drivers of international R&D outsourcing, in terms of technological resources and international experience. In addition, the research discusses how this innovation behaviour differs between young and more mature firms. To achieve this goal, an empirical study using PITEC database was conducted, based on a sample of 3720 Spanish manufacturing firms over the years 2009 to 2016. The results show that technological resources and international experience positively affect the propensity to outsource international R&D. Further, the strength of these relationships varies depending on the level of maturity of a firm. In this sense, the younger firms are, the stronger the positive relationship between international experience and international R&D outsourcing. Regarding the relations between internal technological resources and international R&D outsourcing, there is only partial support for the negative moderating role of firm age. This paper concludes by discussing the implications of the study for researchers, manager, and policymakers.