Innovation and the International Firm Structure: Theory and Evidence from German Firm-Level Data

Thorsten Hansen

Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems from Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich

Abstract: This paper studies the impact of innovation on the organizational structure. The theoretical framework predicts that a larger parental pool of knowledge raises the probability of offshoring. This holds in a national as well as an international context. However, when the producer loses territorial protection, the changeover from non-integration to integration is delayed. Employing data on German firms investing in Eastern Europe finds empirical evidence for the theoretical predictions. The results are robust to different measurements and an instrumental variable regression.

JEL-codes: D23 D51 F23 L14 L21 L22 L23 (search for similar items in EconPapers)
Date: 2010-04
New Economics Papers: this item is included in nep-cse, nep-ino, nep-int, nep-knm and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:trf:wpaper:315

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