|
First,
outsourcing reduces process R&D in large markets if the multinational
firm only conducts process R&D.
Second,
outsourcing promotes product R&D but tends to discourage process R&D
if the multinational firm conducts both product R&D and process R&D.
Therefore,
outsourcing tends to emerge as a complementary factor to product development
but as a substitute for process R&D.
|