Technological Knowledge and Offshore Outsourcing: Evidence from Japanese firm-level data
AbstractThis paper empirically examines the effects of knowledge capital on offshore outsourcing choices based on original survey data of Japanese firms. The results of a multinomial logit model demonstrate that firms' offshoring is positively correlated with knowledge capital measured by their R&D activities or patenting, even after controlling for other firm characteristics including productivity, capital intensity, firm age, and export status. Further, knowledge-intensive firms are more inclined to choose foreign insourcing rather than outsourcing, suggesting that firms tend to internalize their technological knowledge in offshore sourcing.
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Bibliographic InfoPaper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 11052.
Length: 43 pages
Date of creation: May 2011
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-30 (All new papers)
- NEP-BEC-2011-05-30 (Business Economics)
- NEP-CSE-2011-05-30 (Economics of Strategic Management)
- NEP-INO-2011-05-30 (Innovation)
- NEP-INT-2011-05-30 (International Trade)
- NEP-KNM-2011-05-30 (Knowledge Management & Knowledge Economy)
- NEP-SBM-2011-05-30 (Small Business Management)
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- Angels Pelegrín & José García-Quevedo, 2012. "Which firms are involved in foreign vertical integration?," Working Papers 2012/38, Institut d'Economia de Barcelona (IEB).
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