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Exploring the links between offshoring and innovation

Published on Mar 1, 2015
· DOI :10.1007/s40812-014-0008-8
Davide Castellani21
Estimated H-index: 21
(University of Perugia),
Maria Luisa Mancusi11
Estimated H-index: 11
(CUA: The Catholic University of America)
+ 1 AuthorsAntonello Zanfei20
Estimated H-index: 20
(University of Urbino)
Abstract
A. Zanfei (&) Department of Economics, Society and Politics, University of Urbino, Via Saffi 42, 61029 Urbino, Italy e-mail: antonello.zanfei@uniurb.it 1 Resorting to foreign unaffiliated companies is often dubbed as offshore outsourcing, including pure supply relationships as well as more comprehensive partnership subcontracting. Offshoring within the boundaries of multinational enterprises (MNEs) is also referred to as offshore in-house sourcing (OECD 2006) or captive offshoring (Kedia and Mukherjee 2008). Strictly speaking, this definition implies a total or partial closure of activities at home and their transfer to new or existing foreign affiliates. However, it is widely accepted that offshoring may also include all greenfield and brownfield foreign direct investment (FDI) and outsourcing to independent companies, no matter whether they substitute for activities at home.
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Recent years have seen remarkable changes in the nature of trade and foreign direct investment (FDI) flows. A keyword that is often used to summarize the multi-facet aspects of this transformation is ‘‘offshoring’’ which can be broadly defined as firms’ allocation of economic activities to another country, either by obtaining goods and services from unaffiliated foreign companies, or by investing in the creation of joint ventures or foreign affiliates (the latter being identified as ‘‘captive of...
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