The Economic Analysis Of Corporate R&D Outsourcing

Corporation contract with external resources for outsourcing its R&D development, the method is called corporate R&D outsourcing. With the development of R&D outsourcing, lots of scholars are interested in it, they pay attention to the motive of corporate R&D outsourcing and the effect of R&D outsourcing on corporation, but they only explain them logically or by giving examples. In this paper author try to establish some models about corporate R&D outsourcing to explain two important questions:"why do the corporation outsource its R&D development" and "the factors influence the effect of R&D outsourcing".In this paper, we can arrive at some conclusions:1. Corporations will outsource its R&D development on condition that:the transaction cost of R&D outsourcing is below the cost of internal R&D development, corporations want to break its technology developing path, but the isolated mechanism exist in the market; the achievement of in-house R&D development is not enough for company.2. The factors, which impact R&D outsourcing’s effect, are information asymmetry and knowledge spillover, they have negative effect on R&D outsourcing. When information asymmetry and knowledge spillover exist, corporations are less likely outsourcing its R&D development, and R&D outsourcing’s profit is smaller.Combining these conclusions with our country’s R&D outsourcing, we can see:1. Chinese companies can development its technology level by outsourcing their R&D development, especially company need to transform its development way.2. Our government and self regulating organization should reduce information asymmetry and knowledge spillover to benefit more companies.3. Government need to consider the characteristics of the industry or sector when it support corporations’ R&D development.4. Companies can maximize its R&D outsourcing’s profit only if they realize their position in market or industry.