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- Title
SERVICES OUTSOURCING AND INNOVATION: AN EMPIRICAL INVESTIGATION.
- Authors
GÖRG, HOLGER; HANLEY, AOIFE
- Abstract
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, but the magnitude is smaller. We also find that international services outsourcing has a positive effect on profitability, as predicted by theory, whereas this is not true for domestic sourcing. The results are robust to various specifications and an instrumental variables analysis. ( JEL F19, O31)
- Subjects
IRELAND; CONTRACTING out; INNOVATIONS in business; EMPIRICAL research; OFFSHORE assembly industry; PROFITABILITY; ROBUST control; INTERNATIONAL division of labor; RICARDIAN Model of International Trade; MATHEMATICAL models; RESEARCH &; development; METHODOLOGY
- Publication
Economic Inquiry, 2011, Vol 49, Issue 2, p321
- ISSN
0095-2583
- Publication type
Article
- DOI
10.1111/j.1465-7295.2010.00299.x