Off-shoring, specialization and R&D

Bournakis, Ioannis and Vecchi, Michela and Venturini, Francesco (2018) Off-shoring, specialization and R&D. Review of Income and Wealth, 64 (1). pp. 26-51. ISSN 1475-4991

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This paper investigates whether off-shoring promotes technological specialization by reallocating resources towards high-tech industries and/or stimulating within industry R&D. Using data for the US, Japan and Europe, our results show that material off-shoring promotes high-tech specialization through input reallocation between sectors, while service off-shoring favours technologically advanced production by increasing within-industry productivity, mainly via its positive impact on R&D. Conversely, we find that the increasing fragmentation of core production tasks, captured by narrow off-shoring, has adverse effects on technological specialisation, which suggests that this type of off-shoring is mainly pursued for cost-reduction motives.

Item Type: Article
Research Areas: A. > Business School > Economics
Item ID: 19042
Notes on copyright: © 2016 The Author. Review of Income and Wealth published by John Wiley & Sons Ltd on behalf of International Association for Research in Income and Wealth. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.
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Depositing User: Michela Vecchi
Date Deposited: 18 Mar 2016 10:16
Last Modified: 20 Feb 2018 14:24

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