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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 - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology

No 486, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: We examine the impact of offshoring on patenting and total factor productivity 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 results show that the link between offshoring on the one hand and innovation and productivity on the other is largely explained by self-selection and reverse causality. We find a positive but statistically weak impact of offshoring on innovation, and no effect on productivity.

Keywords: offshoring; patent; trademark; innovation; productivity; panel data (search for similar items in EconPapers)
JEL-codes: C33 D24 F61 L23 O31 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2020-08-03
New Economics Papers: this item is included in nep-eff, nep-ent, nep-sbm and nep-tid
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