Globalization, technological advances and the demands of international competition have driven firms to develop activities in their value chains abroad. Although this phenomenon — known as offshoring — is not new, it has undeniably gained in importance over the last decade. And the scope,...

I integrate the literatures on global strategy and innovation management to explain how domestic firms and subsidiaries of foreign firms innovate. Building on the knowledge-based view, I argue that subsidiaries of foreign firms and domestic firms have access to different knowledge sources and...