Services Outsourcing and Innovation: An empirical investigation
We provide a comprehensive empirical analysis of the links between international services outsourcing, domestic outsourcing, profits and innovation using plant level data. We find a positive effect of international outsourcing of services on innovative activity at the plant level. Such a positive effect can also be observed for domestic outsourcing of services, but the magnitude is smaller. This makes intuitive sense, as international outsourcing allows more scope for exploiting international factor price differentials, therefore giving the establishment higher profits and more scope to restructure production activities towards innovation. We also find that international outsourcing has a positive effect on profitability, as predicted by theory, while this is not true for domestic sourcing. The results are robust to various specifications and an instrumental variables analysis
|Date of creation:||Apr 2008|
|Date of revision:|
|Contact details of provider:|| Postal: Kiellinie 66, D-24105 Kiel|
Phone: +49 431 8814-1
Fax: +49 431 85853
Web page: http://www.ifw-kiel.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alexander Hijzen, & Tomohiko Inui, & Yasuyuki Todo, .
"Does Offshoring Pay? Firm-Level Evidence From Japan,"
07/14, University of Nottingham, GEP.
- Alexander Hijzen & Tomohiko Inui & Yasuyuki Todo, 2010. "Does Offshoring Pay? Firm-Level Evidence From Japan," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 880-895, October.
- Alexander HIJZEN & INUI Tomohiko & TODO Yasuyuki, 2007. "Does Offshoring Pay? Firm-Level Evidence from Japan," Discussion papers 07005, Research Institute of Economy, Trade and Industry (RIETI).
- Pol Antràs & Elhanan Helpman, 2003.
NBER Working Papers
10082, National Bureau of Economic Research, Inc.
- Antras, Pol & Helpman, Elhanan, 2004. "Global Sourcing," Scholarly Articles 3196327, Harvard University Department of Economics.
- Antràs, Pol & Helpman, Elhanan, 2004. "Global Sourcing," CEPR Discussion Papers 4170, C.E.P.R. Discussion Papers.
- Pol Antras & Elhanan Helpman, 2003. "Global Sourcing," Harvard Institute of Economic Research Working Papers 2005, Harvard - Institute of Economic Research.
- Glass, Amy Jocelyn & Saggi, Kamal, 2001. "Innovation and wage effects of international outsourcing," European Economic Review, Elsevier, vol. 45(1), pages 67-86, January.
- Hans-Werner Sinn, 2006.
"The Pathological Export Boom and the Bazaar Effect: How to Solve the German Puzzle,"
The World Economy,
Wiley Blackwell, vol. 29(9), pages 1157-1175, 09.
- Hans-Werner Sinn, 2006. "The Pathological Export Boom and the Bazaar Effect - How to Solve the German Puzzle," CESifo Working Paper Series 1708, CESifo Group Munich.
- Sinn, Hans-Werner, 2006. "The pathological export boom and the bazaar effect: How to solve the German puzzle," Munich Reprints in Economics 19602, University of Munich, Department of Economics.
- Ann Bartel & Saul Lach & Nachum Sicherman, 2005.
"Outsourcing and Technological Change,"
NBER Working Papers
11158, National Bureau of Economic Research, Inc.
- Bartel, Ann P & Lach, Saul & Sicherman, Nachum, 2005. "Outsourcing and Technological Change," CEPR Discussion Papers 5082, C.E.P.R. Discussion Papers.
- Bartel, Ann P. & Lach, Saul & Sicherman, Nachum, 2009. "Outsourcing and Technological Change," IZA Discussion Papers 4678, Institute for the Study of Labor (IZA).
- Dermot Leahy, & Catia Montagna, .
"‘Make-or-Buy' in International Oligopoly and the Role of Competitive Pressure,"
07/05, University of Nottingham, GEP.
- Dermot, Leahy & Catia, Montagna, 2007. "‘Make-or-Buy’ in International Oligopoly and the Role of Competitive Pressure," MPRA Paper 7468, University Library of Munich, Germany.
- Dermot Leahy & Catia Montagna, 2006. "'Make-or-Buy' in International Oligopoly and the Role of Competitive Pressure," Dundee Discussion Papers in Economics 197, Economic Studies, University of Dundee.
- Dermot Leahy & Catia Montagna, 2007. "Make-Or-Buy’ In International Oligopoly And The Role Of Competitive Pressure," Economics, Finance and Accounting Department Working Paper Series n1901107.pdf, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
- Eiichi Tomiura, 2005.
"Foreign Outsourcing, Exporting, and FDI: A Productivity Comparison at the Firm Level,"
Discussion Paper Series
168, Research Institute for Economics & Business Administration, Kobe University.
- Tomiura, Eiichi, 2007. "Foreign outsourcing, exporting, and FDI: A productivity comparison at the firm level," Journal of International Economics, Elsevier, vol. 72(1), pages 113-127, May.
- Chiara Criscuolo & Jonathan E. Haskel & Matthew J. Slaughter, 2005.
"Global Engagement and the Innovation Activities of Firms,"
NBER Working Papers
11479, National Bureau of Economic Research, Inc.
- Criscuolo, Chiara & Haskel, Jonathan E. & Slaughter, Matthew J., 2010. "Global engagement and the innovation activities of firms," International Journal of Industrial Organization, Elsevier, vol. 28(2), pages 191-202, March.
- repec:hrv:faseco:4784029 is not listed on IDEAS
- Geishecker, Ingo & Görg, Holger, 2007.
"Winners and losers: A Micro-level Analysis of International Outsourcing and Wages,"
CEPR Discussion Papers
6484, C.E.P.R. Discussion Papers.
- Ingo Geishecker & Holger Görg, 2008. "Winners and losers: a micro-level analysis of international outsourcing and wages," Canadian Journal of Economics, Canadian Economics Association, vol. 41(1), pages 243-270, February.
- Mark Cassidy & Holger Görg & Eric Strobl, 2005. "Knowledge Accumulation, And Productivity: Evidence From Plant-Level Data For Ireland," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(3), pages 344-358, 07.
- Amiti, Mary & Wei, Shang-Jin, 2006. "Service Offshoring, Productivity and Employment: Evidence from the US," CEPR Discussion Papers 5475, C.E.P.R. Discussion Papers.
- Swenson, Deborah L., 2004. "Entry costs and outsourcing decisions: evidence from the U.S. overseas assembly provision," The North American Journal of Economics and Finance, Elsevier, vol. 15(3), pages 267-286, December.
- Kohn, Meir & Scott, John T, 1982. "Scale Economies in Research and Development: The Schumpeterian Hypothesis," Journal of Industrial Economics, Wiley Blackwell, vol. 30(3), pages 239-49, March.
When requesting a correction, please mention this item's handle: RePEc:kie:kieliw:1417. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dieter Stribny)The email address of this maintainer does not seem to be valid anymore. Please ask Dieter Stribny to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.