Talent Is Key Driver in R&D Outsourcing

Posted by Sheila Redick on February 16, 2006

A new report by the Ewing Marion Kauffman Foundation identifies intellectual capital and university collaboration - not just lower costs - as the primary motivation for the outsourcing of R&D by multinational companies.

The study of more than 200 multinational companies across 15 industries, mostly headquartered in the United States and Western Europe, finds that emerging countries such as China and India will continue to be major beneficiaries of R&D expansion over the next three years as companies seek new market opportunities, access to top scientists and engineers, and collaborative research relationships with leading universities.

The report further emphasizes the need for dynamic cities flush with smart people and great universities if the U.S. is to compete in the global economy.   

"The study underscores the critical role universities play in a country's national innovation system, not just in the training of new scientists and access to the best talent, but in the ease of developing and licensing technology," said Carl Schramm, president and CEO of the Kauffman Foundation.

You can read a New York Times piece on the study here, or access the report by clicking here.