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Globalization of Production and Innovation: How Outsourcing is Reshaping an Advanced Manufacturing Area

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Author Info

  • Lucia Cusmano
  • Maria Luisa Mancusi
  • Andrea Morrison

Abstract

Cusmano L., Mancusi M. L. and Morrison A. Globalization of production and innovation: how outsourcing is reshaping an advanced manufacturing area, Regional Studies. This paper investigates the determinants and the spatial and functional dimensions of firms' outsourcing. Based on a large survey of manufacturing firms in Lombardy, Italy, the analysis shows that outsourcing is remarkably wide across sectors and has a clear regional dimension, concerning highly skilled firms at most. Offshoring is still a minor fraction of the deverticalization process, largely related to wider strategies of internationalization by foreign group subsidiaries at intermediate stages of the value chain. The evidence suggests the regional system is inserting onto global knowledge networks, but also points at the risk of 'branch plant effects' in high-technology segments. [image omitted] Cusmano L., Mancusi M. L. et Morrison A. La mondialisation de la production et de l'innovation: comment l'approvisionnement a l'exterieur reorganise une zone industrielle avancee, Regional Studies. Cet article cherche a examiner les determinants et la portee geographique et fonctionnelle de l'approvisionnement a l'exterieur des entreprises. A partir d'une enquete detaillee des entreprises industrielles situees en Lombardie en Italie, l'analyse laisse voir que l'approvisionnement a l'exterieur s'avere tres generalisee a travers les secteurs et a une portee nettement regionale en ce qui concerne notamment les entreprises dont la main-d'oeuvre est hautement qualifiee. Les activites offshore representent toujours une proportion negligeable du processus de desintegration verticale et se rapporte etroitement aux strategies d'internationalisation des filiales des groupes etrangers aux etapes intermediaires de la chaine des valeurs. Les preuves laissent supposer que le systeme regional s'insere dans des reseaux de connaissance mondiaux, mais indique egalement la menace que pose des 'effets etablissement' dans les secteurs a la pointe de la technologie. Approvisionnement a l'exterieur Activites offshore Systeme de production regional Industrie Italie Cusmano L., Mancusi M. L. und Morrison A. Die Globalisierung von Produktion und Innovation: Wie sich eine fort geschrittene Produktionsregion durch Outsourcing verandert, Regional Studies. In diesem Beitrag untersuchen wir die Determinanten sowie die raumlichen und funktionellen Dimensionen des Outsourcing von Firmen. Ausgehend von einer umfangreichen Erhebung unter produzierenden Firmen in der Lombardei, Italien, geht aus der Analyse hervor, dass das Outsourcing in den verschiedenen Sektoren bemerkenswert weit verbreitet ist und eine eindeutig regionale Dimension aufweist, die vor allem Firmen mit hohem Qualifikationsniveau betrifft. Die Verlagerung ins Ausland stellt weiterhin einen kleinen Bruchteil des Devertikalisierungsprozesses dar und ist grosstenteils mit den breiter angelegen Internationalisierungsstrategien von Filialen auslandischer Konzerne auf den mittleren Stufen der Wertschopfungskette verknupft. Die Belege lassen darauf schliessen, dass sich das regionale System in die globalen Wissensnetzwerke einfugt, weisen aber auch auf das Risiko von 'Zweigwerkseffekten' in Hightech-Segmenten hin. Outsourcing Verlagerung ins Ausland Regionales Produktionssystem Produzierende Industrie Italien Cusmano L., Mancusi M. L. y Morrison A. Globalizacion de produccion e innovacion: como la contratacion externa remodela un area manufacturera avanzada, Regional Studies. En este articulo investigamos los determinantes y las dimensiones espacial y funcional de la contratacion externa de empresas. Basandonos en un importante estudio de empresas manufactureras de Lombardia, Italia, en este analisis mostramos que la contratacion externa esta muy extendida en todos los sectores y tiene una clara dimension regional, sobre todo con respecto a las empresas altamente cualificadas. La externalizacion de servicios representa todavia una fraccion menor del proceso de desverticalizacion, y en gran medida relacionada con estrategias mas extensas de la internacionalizacion por parte de filiales de grupos extranjeros en fases intermedias de la cadena de valores. La evidencia indica que el sistema regional se inserta en las redes de conocimiento globales pero tambien senala el riesgo de 'efectos de las sucursales' en segmentos de alta tecnologia. Contratacion externa Externalizacion de servicios Sistema de produccion regional Industria manufacturera Italia

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 44 (2010)
Issue (Month): 3 ()
Pages: 235-252

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Handle: RePEc:taf:regstd:v:44:y:2010:i:3:p:235-252

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Related research

Keywords: Outsourcing; Offshoring; Regional production system; Manufacturing industry; Italy;

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References

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  1. Ron Boschma, 2004. "Competitiveness of Regions from an Evolutionary Perspective," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 1001-1014.
  2. Abraham, Katharine G & Taylor, Susan K, 1996. "Firms' Use of Outside Contractors: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 394-424, July.
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Citations

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Cited by:
  1. Manuel Artís & Raul Ramos & Jordi Suriñach, 2006. "Job losses, outsourcing and relocation: Empirical evidence using microdata," Working Papers CREAP2006-05, Xarxa de Referència en Economia Aplicada (XREAP), revised Oct 2006.
  2. Pinuccia Calia & Maria Ferrante, 2013. "How do firms combine different internationalisation modes? A multivariate probit approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 149(4), pages 663-696, December.
  3. Liza Jabbour & Maria Pluvia Zuniga, . "Drivers of the Offshore Outsourcing of R&D: Empirical Evidence from French Manufacturers," Discussion Papers 09/04, University of Nottingham, GEP.
  4. Elia, Stefano & Maggi, Elena & Mariotti, Ilaria, 2011. "Does the transport industry gain from manufacturing internationalization? An empirical investigation on the Italian regions," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 49, pages 53-74.
  5. Kluck, Christian, 2012. "Zur Beschäftigungsdynamik in der Wissensökonomie: Die Entwicklung von wissensintensiven-unternehmensorientierten Dienstleistungen in Deutschland," Beiträge zur Wirtschaftsgeographie und Regionalentwicklung 2-2012, Universität Bremen, Institut für Geographie.
  6. da Silveira, Giovani J.C., 2014. "An empirical analysis of manufacturing competitive factors and offshoring," International Journal of Production Economics, Elsevier, vol. 150(C), pages 163-173.
  7. Deschryvere, Matthias & Kotiranta, Annu, 2008. "Domestic Employment Effects of Offshoring: Empirical Evidence from Finland," Discussion Papers 1166, The Research Institute of the Finnish Economy.
  8. Roberto Antonietti & Maria Rosaria Ferrante & Riccardo Leoncini, 2014. "Trust your neighbour. Industrial relatedness, social capital and outsourcing," Papers in Evolutionary Economic Geography (PEEG) 1403, Utrecht University, Section of Economic Geography, revised Jan 2014.

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