Offshoring and Outsourcing of R&D and Business Activities in Canadian Technology Firms
Keywords:offshoring, outsourcing, research and development, manufacturing, Canada, business strategies, manufacturing firms
A substantial amount of empirical research has been conducted on the offshoring/outsourcing practices of U.S., European, South Korean, and Japanese technology firms. However, there is very little research evidence on the strategies of Canadian firms. This leaves a gap in the literature that we aim to fulfill by providing empirical evidence of the practice among Canadian manufacturing firms. The evidence presented is based on t he 2009Survey of Innovation and Business Strategy conducted by Statistics Canada. This survey provides the largest and most comprehensive data in Canada on this topic. The data suggest that only a very small proportion of Canadian manufacturing firms offshore/outsource their R&D and other business activities and only a select few countries. The primary motivations for Canadian firms to offshore/outsource their R&D and business activities are to reduce costs and to gain access to new markets. The managerial, policy, and research implications of the results are discussed.
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