The Impact of External Sourcing of R&D Resources on R&D Worker Mobility

Abstract

The use of external R&D resources for innovation has received substantial attention in the innovation literature. What is less known about it, however, is its impact on the mobility of R&D workers. In this paper, we hypothesized that the external sourcing of R&D resources facilitates the mobility of R&D workers since it provides them with generalpurpose knowledge, generates unutilized technology, and creates job opportunities. These arguments were tested by a panel sample of 2,154 Japanese listed companies between 2012 and 2020. The results indicate that the use of external R&D resources itself positively affects the mobility of R&D workers. However, the amount of investment in external sourcing has a negative impact on their mobility. Furthermore, the more diverse the external sources are, the more R&D workers move. Thus, this study sheds light on an essential aspect of intricate mechanisms through which the external sourcing of R&D resources influences firm-level outcomes.