The Effects of Production Offshoring on R&D and Innovation in the Home Country

This paper tests the assumption that offshoring of production activities leads to less innovation 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 employ more people in R&D and design, introduce more frequently new products, 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

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Year of publication:	2013
Authors:	Dachs, Bernhard ; Ebersberger, Bernd ; Kinkel, Steffen ; Som, Oliver
Publisher:	[S.l.] : SSRN
Subject:	Innovation \| Auslandsverlagerung \| Offshoring \| Industrie \| Manufacturing industries \| Produktivität \| Productivity

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