"The main objective of this proposal is to capitalize on the scholarly experience the applicant researcher has acquired in the United States and contribute to the advancement of the state-of-the-art research conducted in Koc University, in Turkey as well as in Europe. The project “Short and Long-term Stock Market Returns from Innovation Outsourcing: A Comparative Analysis of Domestic versus Offshore High-Tech Markets (INNOVATION-SOURCING)” aims to provide an understanding on the returns and risks of a firm’s decision to outsource its innovation development. Specifically, this research addresses the following questions: (1) what are the effects of innovation outsourcing on short versus long-term stock market performance and are firms better off outsourcing innovation domestically or offshoring; (2) what sources of dependence and uncertainty impact short versus long-term stock market performance in the domestic versus offshore outsourcing contexts; and (3) overall, what is the optimal innovation outsourcing spending as reflected in the market stock returns? The implementation of this research project requires the training and the cooperation of doctoral students, and hence, may contribute to reversing of the effects of the European brain drain to third countries. The subject matter in this research project may also allow the development of enduring collaborations with the scientific and industrial milieu of Europe and the USA. Given the timeliness and significance of the topic, this project not only has the potential to contribute to the researcher’s long term professional integration, but also to the scientific excellence and competitiveness of Europe as a whole."