In this paper we analyze the conditions under which firms decide to offshore innovation. We consider the role of … technological change. Using unique data from the German Innovation Survey we find that while high speed of technological change … tends to drive innovation offshoring, high uncertainty about future technology developments results in more innovation …

Established firms often face significant obstacles to innovation. As a solution, it has been suggested to form … monitored by their corporate sponsors, resulting in less favorable conditions for radical innovation …

Recent years have shown a surge of firms globalising their innovation activities in order to gain from international … stronger dispersed international R&D activities hamper or stimulate innovation. Second, we employ two well-established market …-based indicators for innovation (introduction of and sales growth rates due to new products) instead of looking at inventions (patents …

’ innovation activities. Employing data from a representative sample of German firms, we find consistently with real options theory … that negatively affected firms substantially reduced R&D and other innovation expenditures not only in the first year of … the pandemic (2020), but also in the two subsequent years indicating ’Long–Covid’ effects on innovation. Furthermore …