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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.

Suggested Citation

  • ITO Banri & TOMIURA Eiichi & WAKASUGI Ryuhei, 2011. "Technological Knowledge and Offshore Outsourcing: Evidence from Japanese firm-level data," Discussion papers 11052, Research Institute of Economy, Trade and Industry (RIETI).
    • 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).
    2. Cho, Janghee & Chun, Hyunbae & Hur, Jung, 2014. "Choosing multiple offshoring strategies: Determinants and complementarity," Journal of the Japanese and International Economies, Elsevier, vol. 34(C), pages 42-57.
    3. 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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