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Outsourcing in the innovation process: Locational and strategic determinants

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Listed:
  • Love, James H.
  • Roper, Stephen

Abstract

There is now substantial evidence that locational and agglomeration influences can have a significant positive effect on innovation performance. Networking and boundary†spanning activities are also increasingly recognised as important contributors to innovation success. In this article we attempt to discover whether these factors are associated: in particular, is there any link between plant location, agglomeration effects and the extent of outsourcing in the innovation process? Using data for a large sample of UK and German manufacturing plants, we find that organisational and strategic factors play a much greater and more consistent role than locational influences in shaping the level of outsourcing in the innovation process. Strategic approaches to outsourcing may also benefit plants in obtaining economies of scope in the management or governance of outsourcing within the innovation process.

Suggested Citation

Handle: RePEc:eee:paresc:v:80:y:2001:i:3:p:317-336
DOI: 10.1111/j.1435-5597.2001.tb01802.x
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JEL classification:

  • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
  • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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