Offshoring and Innovation

PSU Researcher(s)
Stephen Yeaple

Additional Researchers (Affiliation)
Wolfgang Keller (University of Colorado)

With the increase in globalization, research and development (R&D) and production are increasingly separated across both firm and country boundaries.  Our research project is to investigate the extent to which this growing fragmentation affects the private and social return to R&D.  To answer this question, we have assembled a firm-level dataset from several Census resources, including the Census of Manufacturing (CMF), the transaction–level trade data (LFTTD), and the R&D survey data (SIRD & BRDIS).  Additionally, we have merged patent ownership to the firms in this dataset.  We infer changes in the return to R&D caused by the offshoring that was induced by China’s entry into the WTO.