Technological Knowledge and Offshore Outsourcing: Evidence from Japanese firm-level data

Banri Ito, Eiichi Tomiura and Ryuhei Wakasugi ()

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: This paper empirically examines the effects of knowledge capital on offshore outsourcing choices based on original survey data of Japanese firms. The results of a multinomial logit model demonstrate that firms' offshoring is positively correlated with knowledge capital measured by their R&D activities or patenting, even after controlling for other firm characteristics including productivity, capital intensity, firm age, and export status. Further, knowledge-intensive firms are more inclined to choose foreign insourcing rather than outsourcing, suggesting that firms tend to internalize their technological knowledge in offshore sourcing.

Pages: 43 pages
Date: 2011-05
New Economics Papers: this item is included in nep-bec, nep-cse, nep-ino, nep-int, nep-knm and nep-sbm
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:11052

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