Location, shared suppliers and the innovation performance of R&D outsourcing agreements

The location of an international supplier constitutes a crucial variable when outsourcing research and development (R&D) services, especially if the supplier also serves competitors. Even though shared suppliers have refined capabilities, they may act as hubs for knowledge transfers, exposing their clients to the risk of knowledge leakages to their competitors. Building on Transaction Cost Theory, we argue that a client’s ability to benefit from...