Munich Personal RePEc Archive

Firm R&D units and outsourcing partners: A matching story

Barge-Gil, Andrés and Conti, Annamaria (2013): Firm R&D units and outsourcing partners: A matching story.

[img]
Preview
PDF
MPRA_paper_44090.pdf

Download (329kB) | Preview

Abstract

We present a theory that examines the optimal match between firm R&D units and external partners for projects that involve problem solving. We have a firm selecting an external partner conditional on the learning costs of its internal R&D unit. We show that there exists a matching equilibrium with property that external partners with low learning costs for a project work with R\&D units that also have low learning costs for the same project. Empirically, we use a dataset of Spanish R\&D firms and relate their share of R&D outsourcing to universities to the composition of their R&D units, described by the presence of staff with a PhD. Our main finding is that, controlling for endogeneity, firms that employ R\&D staff with a PhD outsource relatively more to universities than to firms. We interpret this result as evidence that R&D units with relatively low learning costs for basic projects tend to match with external partners, universities, with relatively low learning costs for the same projects.

Logo of the University Library LMU Munich
MPRA is a RePEc service hosted by
the University Library LMU Munich in Germany.