This paper sheds new light on forces shaping the outsourcing decision by linking the decision to a certain form of non … to a lumpy relationship between size and outsourcing, in which outsourcing is only practiced by narrow set of firms in …

manufacturing. We use the data to distinguish between low-cost-oriented and innovation-oriented outsourcing. Outsourcing without … innovation lowers costs at the expense of damaging the future chances of innovation, while innovation-oriented outsourcing leads … firms that innovate, simultaneously outsourcing increases the probability of future innovation by 4 per cent. Innovation …

of firms and when firms are only considering outsourcing to domestic suppliers. Firm-level data on Australian …

A general framework for the study of outsourcing is introduced that incorporates dynamics and heterogeneity among both … suppliers. Average employment in this model might increase or decrease with outsourcing, which is an observed pattern in the …

manufacturing. We use the data to distinguish between low-cost-oriented and innovation-oriented outsourcing. Outsourcing without … innovation lowers costs at the expense of damaging the future chances of innovation, while innovation-oriented outsourcing leads … firms that innovate, simultaneously outsourcing increases the probability of future innovation by 4 per cent. Innovation …