TY - JOUR
T1 - Going offshore or better staying in?
T2 - Spatial relocation strategies and their impact on firm innovativeness
AU - Kreutzer, Fabian
AU - Mitze, Timo
PY - 2017
Y1 - 2017
N2 - We analyse the short- to mid-run effects of spatial relocation strategies on firm innovativeness and productivity growth. Using conditional difference-in-difference estimation with multiple treatments, we find for a sample of German firms in 1999–2013 that offshoring has a statistically significant negative impact on the firms’ innovation activity and productivity growth vis-à-vis nonrelocating comparison firms. In contrast, we find a positive link between domestic relocation activities and the firms’ propensity to introduce a product innovation. Firms should thus carefully account for potentially distorting performance effects when deciding about the spatial scale of relocation strategies in the short to mid-run.
AB - We analyse the short- to mid-run effects of spatial relocation strategies on firm innovativeness and productivity growth. Using conditional difference-in-difference estimation with multiple treatments, we find for a sample of German firms in 1999–2013 that offshoring has a statistically significant negative impact on the firms’ innovation activity and productivity growth vis-à-vis nonrelocating comparison firms. In contrast, we find a positive link between domestic relocation activities and the firms’ propensity to introduce a product innovation. Firms should thus carefully account for potentially distorting performance effects when deciding about the spatial scale of relocation strategies in the short to mid-run.
U2 - 10.1080/13504851.2016.1231892
DO - 10.1080/13504851.2016.1231892
M3 - Journal article
SN - 1350-4851
VL - 24
SP - 837
EP - 840
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 12
ER -