The Effect of High‐Tech Services Offshoring on Skilled Employment: Intra‐Firm Evidence

Abstract

The offshoring of high-tech services has greatly increased in recent years, with consequences for firms demand for skilled employment in firms. This paper specifically analyzes the relationship between R&D offshoring and the demand for R&D employment using firm-level data for Spanish manufacturing and services companies during the period 2004-2009. Estimating different specifications with panel data techniques, we find that this association is statistically positive. In particular, if R&D offshoring doubles, the demand for researchers will raise by about 8%.