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Technological Knowledge and Offshore Outsourcing: Evidence from Japanese firm-level data

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  • ITO Banri
  • TOMIURA Eiichi
  • WAKASUGI Ryuhei

Abstract

This 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 Info

Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 11052.

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Length: 43 pages
Date of creation: May 2011
Date of revision:
Handle: RePEc:eti:dpaper:11052

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Cited by:
  1. 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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