The impact of country level factors on the choice of R&D offshoring location

This thesis explores the topic of offshoring R&D development by companies in all industries. The aim of the study is to identify the main factors affecting the decision-making process of choosing where to offshore R&D by companies. The thesis begins with a literature review covering globalization of the economies, which aided in the innovative methods of offshoring business activities through different countries. Different forms of offshoring were covered based on past literature, as well as advantages and disadvantages according to various variables that strategic management considers before initiating the decision-making process of offshoring. The practical part includes a face-to-face interview with two representatives from major healthcare companies – BREAS Medical AB and QuantMDx – in order to understand the complexities of offshoring. The thesis findings suggest that the main reason for offshoring is financial attractiveness, primarily to developing countries.