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The impact of offshoring on innovation and productivity: Evidence from Swedish manufacturing firms

Christopher Baum (), Hans Lööf (), Andreas Stephan () and Ingrid Viklund-Ros
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Ingrid Viklund-Ros: CESIS, KTH Royal Institute of Technology

No 1014, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: We examine the impact of offshoring on patenting and total factor productivity as a measure on technical change using a panel of 7,000 mainly small Swedish manufacturing firms over the period 2001-2014. We apply the United Nations Broad Economic Categories (BEC) system to identify offshoring-related intermediate imports. The empirical analysis shows that a positive link between offshoring and innovation exists. However, the effects are much weaker and less significant when self-selection and reverse causality from innovation to offshoring are considered.

Keywords: offshoring; patent; trademark; innovation; productivity; panel data (search for similar items in EconPapers)
JEL-codes: C23 F23 O47 O33 O52 (search for similar items in EconPapers)
Date: 2020-07-31
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ino and nep-int
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