Tojeiro Rivero, Damián2025-11-122025-11-122021-08-201873-0620https://hdl.handle.net/2445/224310The present study argues that R&D offshoring is not only a matter of firm's decision as in previous literature, but also has an important industrial externality component. For a sample of manufacturing and services industries in the period 2005–15, I study the externalities coming from R&D offshorers in a given industry and the heterogeneous effects of enterprises' internal knowledge base characteristics. The evidence points to offshoring externality (OE) presenting an inverted U-shape with respect to the firms' innovative processes. However, firms with higher levels of human capital and/or internal R&D investments obtain higher returns coming from the OE. Overall, it seems that a strategy (R&D offshoring) that is highly beneficial for enterprises individually, might be also optimal for the Spanish economy.44 p.application/pdfengPolítica industrialDeslocalització industrialIndustrial policyBusiness relocationinfo:eu-repo/semantics/articleinfo:eu-repo/semantics/openAccess