External technology supply and client-side innovation
Flexibility in response to competitive pressure from globalized markets and increasingly individualized customer desires has become vital for firms. A common strategy to address this challenge is to employ a dynamic concept of organization and reach beyond the boundaries of the firm. Accordingly, technology transfer from providers of knowledge intensive business services attracts more and more attention. In this context we focus on external supply of information technology and client-side innovation. The aim of this paper is to contribute to resolving an empirical puzzle arising from the prior literature. Some authors find beneficial effects of IT outsourcing, others underline that firms often fail to achieve expected strategic goals. Our stylized theoretical model combines a knowledge production function framework and transaction cost economics. We hypothesize that the right balance between internal and external knowledge is critical for innovation. The empirical application is German firm-level data covering a wide range of industries from 2003 to 2006. Our results largely support the theoretical arguments and suggest a positive linear relationship between the level of outsourcing and process innovation. For product innovation we find a hump-shape.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.zew.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.:
- Holger Görg & Aoife Hanley, 2011.
"Services Outsourcing And Innovation: An Empirical Investigation,"
Western Economic Association International, vol. 49(2), pages 321-333, 04.
- Holger Görg & Aoife Hanley, 2008. "Services Outsourcing and Innovation: An empirical investigation," Kiel Working Papers 1417, Kiel Institute for the World Economy.
- Görg, Holger & Hanley, Aoife, 2009. "Services outsourcing and innovation: An empirical investigation," CEPR Discussion Papers 7390, C.E.P.R. Discussion Papers.
- Görg, Holger & Hanley, Aoife, 2009. "Services Outsourcing and Innovation: An Empirical Investigation," IZA Discussion Papers 4404, Institute for the Study of Labor (IZA).
- C. Antonelli, 2007.
"Localized Technological Change,"
in: Elgar Companion to Neo-Schumpeterian Economics, chapter 16
- Antonelli, Cristiano, 2003. "Localized Technological Change," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200305, University of Turin.
- Bertschek, Irene, 1995. "Product and Process Innovation as a Response to Increasing Import and Foreign Direct Investment," Journal of Industrial Economics, Wiley Blackwell, vol. 43(4), pages 341-57, December.
- Sascha O. Becker & Peter Egger, 2007.
"Endogenous Product versus Process Innovation and a Firm’s Propensity to Export,"
CESifo Working Paper Series
1906, CESifo Group Munich.
- Sascha Becker & Peter Egger, 2013. "Endogenous product versus process innovation and a firm’s propensity to export," Empirical Economics, Springer, vol. 44(1), pages 329-354, February.
- Stefan Bauernschuster & Oliver Falck & Stephan Heblich, 2009.
"Training and Innovation,"
Journal of Human Capital,
University of Chicago Press, vol. 3(4), pages 323-353.
- Claudio A. Piga & Marco Vivarelli, 2003.
"Internal and External R&D: A Sample Selection Approach,"
Papers on Entrepreneurship, Growth and Public Policy
2004-05, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Claudio A . Piga & Marco Vivarelli, 2004. "Internal and External R&D: A Sample Selection Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(4), pages 457-482, 09.
- Ohnemus, Jörg, 2007. "Does IT Outsourcing Increase Firm Success? An Empirical Assessment using Firm-Level Data," ZEW Discussion Papers 07-087, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- repec:hrv:faseco:4784029 is not listed on IDEAS
- Engelstätter, Benjamin & Sarbu, Miruna, 2010. "Enterprise software and service innovation: Standardization versus customization," ZEW Discussion Papers 10-100, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Miozzo, Marcela & Grimshaw, Damian, 2005. "Modularity and innovation in knowledge-intensive business services: IT outsourcing in Germany and the UK," Research Policy, Elsevier, vol. 34(9), pages 1419-1439, November.
- 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.
- Caroline Freund & Diana Weinhold, 2002. "The Internet and International Trade in Services," American Economic Review, American Economic Association, vol. 92(2), pages 236-240, May.
- Tether, Bruce S. & Tajar, Abdelouahid, 2008. "Beyond industry-university links: Sourcing knowledge for innovation from consultants, private research organisations and the public science-base," Research Policy, Elsevier, vol. 37(6-7), pages 1079-1095, July.
- Gooroochurn, Nishaal & Hanley, Aoife, 2007.
"A tale of two literatures: Transaction costs and property rights in innovation outsourcing,"
Elsevier, vol. 36(10), pages 1483-1495, December.
- Nishaal Gooroochurn & Aoife Hanley, 2006. "A Tale of Two Literatures: Transaction Cost and Property Rights in Innovation Outsourcing," Occasional Papers 17, Industrial Economics Division.
- Dirk Czarnitzki & Alfred Spielkamp, 2003.
"Business services in Germany: bridges for innovation,"
The Service Industries Journal,
Taylor & Francis Journals, vol. 23(2), pages 1-30, March.
- Czarnitzki, Dirk & Spielkamp, Alfred, 2000. "Business services in Germany: bridges for innovation," ZEW Discussion Papers 00-52, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Paul Windrum & Andreas Reinstaller & Christopher Bull, 2009. "The outsourcing productivity paradox: total outsourcing, organisational innovation, and long run productivity growth," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 197-229, April.
- Christoph Grimpe & Ulrich Kaiser, 2010. "Balancing Internal and External Knowledge Acquisition: The Gains and Pains from R&D Outsourcing," Journal of Management Studies, Wiley Blackwell, vol. 47(s2), pages 1483-1509, December.
- David Audretsch & Marcel Hülsbeck & Erik Lehmann, 2012.
"Regional competitiveness, university spillovers, and entrepreneurial activity,"
Small Business Economics,
Springer, vol. 39(3), pages 587-601, October.
- Audretsch, David B. & Hülsbeck, Marcel & Lehmann, Erik E., 2010. "Regional competitiveness, university spillovers and entrepreneurial activity," UO Working Papers 02-10, University of Augsburg, Chair of Management and Organization.
- Lind, Jo Thori & Mehlum, Halvor, 2007.
"With or Without U? - The appropriate test for a U shaped relationship,"
4823, University Library of Munich, Germany.
- Jo Thori Lind & Halvor Mehlum, 2010. "With or Without U? The Appropriate Test for a U-Shaped Relationship," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(1), pages 109-118, 02.
- Lind, Jo Thori & Mehlum, Halvor, 2007. "With or Without U? The appropriate test for a U shaped relationship," Memorandum 21/2007, Oslo University, Department of Economics.
- Barras, Richard, 1986. "Towards a theory of innovation in services," Research Policy, Elsevier, vol. 15(4), pages 161-173, August.
- Erik Lehmann & Doris Neuberger & Solvig R”thke, 2004. "Lending to Small and Medium-Sized Firms: Is There an East-West Gap in Germany?," Small Business Economics, Springer, vol. 23(1), pages 23-39, 08.
When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:11082. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.