EconPapers    
Economics at your fingertips  
 

Services outsourcing and innovation: An empirical investigation

Holger Görg () and Aoife Hanley

No 7390, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We provide a comprehensive empirical analysis of the links between international services outsourcing, domestic outsourcing, profits and innovation using plant level data. We find a positive effect of international outsourcing of services on innovative activity at the plant level. Such a positive effect can also be observed for domestic outsourcing of services, but the magnitude is smaller. This makes intuitive sense, as international outsourcing allows more scope for exploiting international factor price differentials, therefore giving the establishment higher profits and more scope to restructure production activities towards innovation. We also find that international services outsourcing has a positive effect on profitability, as predicted by theory, while this is not true for domestic sourcing. The results are robust to various specifications and an instrumental variables analysis.

Keywords: innovation; offshoring; R&D; services outsourcing (search for similar items in EconPapers)
JEL-codes: F19 O31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-ino, nep-int and nep-knm
Date: 2009-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=7390 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: SERVICES OUTSOURCING AND INNOVATION: AN EMPIRICAL INVESTIGATION (2011)
Working Paper: Services Outsourcing and Innovation: An Empirical Investigation (2009) Downloads
Working Paper: Services outsourcing and innovation: An empirical investigation (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:7390

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=7390

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2019-10-03
Handle: RePEc:cpr:ceprdp:7390