The article explores why companies outsource their research and development (R&D) activities. It suggests that firms that work with foreign customers and suppliers tend to outsource more R&D, while those with skilled employees and high internal R&D investments are better at using the outsourced knowledge for innovation. The study found that firms that import or export, have skilled employees, and invest in internal R&D tend to outsource more R&D. Additionally, subsidiaries of foreign firms are less influenced by skilled employees and internal R&D investments when it comes to outsourcing R&D.