Abstract
We investigate the effects of production offshoring on the innovation
activities of manufacturing firms in the home country. The analysis is based on a dataset of more than 3,000 manufacturing firms from seven European countries. We find that offshoring firms on average employ a higher share of R&D and design personnel, introduce new products more frequently to the market, and invest more frequently in advanced process technologies compared to non-offshoring firms. Concerns that offshoring may hurt innovation because of the lost links between production and product development are not supported by the evidence.
| Original language | English |
|---|---|
| Pages (from-to) | 9-31 |
| Number of pages | 23 |
| Journal | Journal of Industrial and Business Economics |
| Volume | 42 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2015 |
Research Field
- Former Research Field - Innovation Systems and Policy
Keywords
- Offshoring
- R&D
- Home country effects
- Investment
- Product innovation
- Process innovation
