The 'New' Globalization of Engineering

Research Report

The 'New' Globalization of Engineering

How the Offshoring of Advanced Engineering Affects Competitiveness and Development

Abstract

This paper examines offshoring of advanced engineering to emerging economies by multinational enterprises (MNEs) through case studies of U.S. and European MNE engineering development sites in China, India, and Mexico. We assess the offshoring of core technologies, impact on MNE engineering capabilities, and degree of technology transfer to emerging economies. We find significant technology transfer to emerging economies, but MNEs are developing multiple national identities, weakening their strong national ties and technology capabilities of their home countries. Although the global state of technology will benefit, it is less certain what the country-specific impact will be on jobs and economic growth.

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