RESEARCH AND DEVELOPMENT, GLOBAL VALUE CHAINS, AND GLOBALIZATION MEASUREMENT: A WORKSHOP

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In recent decades, production processes of final products have been increasingly fragmented across countries in what is called global value chains (GVCs). Production of intermediate goods or services is increasingly outsourced to a foreign affiliate, in the case of multinational companies, or to unrelated companies. Estimates are that about 70 percent of all global trade is in these intermediate goods and services. This increased use of global value chains poses challenges for our statistical system. While National Statistical Organizations collect a great deal of information on economic performance, trade, employment, and foreign direct investment, this information cannot always be used to quantify the international linkages and flows that characterize these cross-border transactions, especially those related to research and development (R&D) or software. The project will convene a 2-day workshop in which a diverse group of experts will address issues concerning the measurement of R&D in the context of GVCs. The long-term objective of the workshop is to help improve the quality of published statistics relevant to R&D and GVCs, and thereby advance understanding of the impacts of GVCs on employment, innovation, global competitiveness, and other economic issues. More accurate and complete characterization of economic activity and economic health will improve governments' capabilities for assessing current and prospective economic policies, the nature of R&D in GVCs and the overall role companies play in it, and any national security implications of the current or prospective landscape. Workshop participants will include experts from the U.S. and abroad in fields such as industrial organization, international trade, and the accounting/taxation of multinational enterprises, as well as staff from (U.S. and foreign) national statistical offices. Original research will be commissioned in advance of the workshop. The workshop will include short panel discussions of the commissioned papers followed by interactive sessions facilitated by key stakeholders. Workshop sessions will guide participants to integrate theoretical and disciplinary perspectives on R&D and GVCs, highlight gaps and inconsistencies in the current measurement of R&D in GVCs, evaluate ongoing efforts to address these gaps, examine national and international manuals used to provide statistical guidance on measurements of R&D and globalization, and identify and prioritize potential improvements in data collection and analysis, among other topics. Workshop outputs will include: (i) the set of research papers solicited in advance of the meeting; and (ii) a Proceedings of the presentations and discussions that summarizes key issues raised during the meeting, including possible strategies for collaboration among U.S. statistical agencies regarding measurement of global R&D and avenues for international collaboration to update statistical manuals related to globalization and R&D.This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.