The effects of production offshoring on R&D and innovation in the home country

Bernhard Dachs, Bernd Ebersberger, Steffen Kinkel and Oliver Som

Economia e Politica Industriale: Journal of Industrial and Business Economics, 2015, vol. 42, issue 1, 9-31

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. Copyright Associazione Amici di Economia e Politica Industriale 2015

Keywords: Offshoring; R&D; Home country effects; Investment; Product innovation; Process innovation; F230; F610; O310; O330 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (11)

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Related works:
Working Paper: The effects of production offshoring on R&D and innovation in the home country (2014)
Working Paper: The Effects of Production Offshoring on R&D and Innovation in the Home Country (2013)
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DOI: 10.1007/s40812-014-0001-2

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