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

Bernhard Dachs, Bernd Ebersberger, Steffen Kinkel and Oliver Som

No 39, Discussion Papers "Innovation Systems and Policy Analysis" from Fraunhofer Institute for Systems and Innovation Research (ISI)

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 3000 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.

Keywords: offshoring; R&D; home country effects; investment; product innovation; process innovation (search for similar items in EconPapers)
JEL-codes: F23 F61 O31 O33 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-cse, nep-eur, nep-ino, nep-int, nep-knm, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://www.econstor.eu/bitstream/10419/92409/1/777140721.pdf (application/pdf)

Related works:
Journal Article: The effects of production offshoring on R&D and innovation in the home country (2015)
Working Paper: The Effects of Production Offshoring on R&D and Innovation in the Home Country (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:fisidp:39

DOI: 10.24406/publica-fhg-297511

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