Captive offshoring, innovation and market diffusion : evidence from the Swedish Community Innovation Survey
(2023) In Journal of the Knowledge Economy- Abstract
Although the effects of captive offshoring on firm innovation have increasingly become a subject of study, the literature did so far not distinguish between the effects on introducing innovation as opposed to the effects their market diffusion. This distinction is important. By integrating insights from the innovation diffusion literature, we argue that the effects of captive offshoring on home base innovation are likely to differ between the generation and the diffusion phases. Using a matched employer-employee panel dataset drawn from consecutive waves of the Swedish Community Innovation Survey (CIS) between 2009 and 2015, it is shown that captive offshoring, as measured by the share of employees at foreign locations, has an inverted... (More)
Although the effects of captive offshoring on firm innovation have increasingly become a subject of study, the literature did so far not distinguish between the effects on introducing innovation as opposed to the effects their market diffusion. This distinction is important. By integrating insights from the innovation diffusion literature, we argue that the effects of captive offshoring on home base innovation are likely to differ between the generation and the diffusion phases. Using a matched employer-employee panel dataset drawn from consecutive waves of the Swedish Community Innovation Survey (CIS) between 2009 and 2015, it is shown that captive offshoring, as measured by the share of employees at foreign locations, has an inverted u-shape effect on innovation propensity (with positive effects for the average firm). In contrast, employment offshoring does not, on average, affect the rate of diffusion as measured by the share of turnover from new products. For firms with more novel product innovations, the effects are even negative.
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- author
- Schubert, Torben LU
- organization
- publishing date
- 2023-04-24
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- Community innovation survey, Diffusion, Innovation, International employment, Sweden
- in
- Journal of the Knowledge Economy
- pages
- 29 pages
- publisher
- Springer
- external identifiers
-
- scopus:85153378128
- ISSN
- 1868-7865
- DOI
- 10.1007/s13132-023-01329-2
- language
- English
- LU publication?
- yes
- additional info
- Open Access funding enabled and organized by Projekt DEAL. Funding by VINNOVA under grant number 2017-05382 is gratefully acknowledged.
- id
- bad5a1d7-a67a-43f3-b5f2-045054e4d8b9
- date added to LUP
- 2023-05-04 15:25:56
- date last changed
- 2024-01-19 21:49:50
@article{bad5a1d7-a67a-43f3-b5f2-045054e4d8b9,
abstract = {{<p>Although the effects of captive offshoring on firm innovation have increasingly become a subject of study, the literature did so far not distinguish between the effects on introducing innovation as opposed to the effects their market diffusion. This distinction is important. By integrating insights from the innovation diffusion literature, we argue that the effects of captive offshoring on home base innovation are likely to differ between the generation and the diffusion phases. Using a matched employer-employee panel dataset drawn from consecutive waves of the Swedish Community Innovation Survey (CIS) between 2009 and 2015, it is shown that captive offshoring, as measured by the share of employees at foreign locations, has an inverted u-shape effect on innovation propensity (with positive effects for the average firm). In contrast, employment offshoring does not, on average, affect the rate of diffusion as measured by the share of turnover from new products. For firms with more novel product innovations, the effects are even negative.</p>}},
author = {{Schubert, Torben}},
issn = {{1868-7865}},
keywords = {{Community innovation survey; Diffusion; Innovation; International employment; Sweden}},
language = {{eng}},
month = {{04}},
publisher = {{Springer}},
series = {{Journal of the Knowledge Economy}},
title = {{Captive offshoring, innovation and market diffusion : evidence from the Swedish Community Innovation Survey}},
url = {{http://dx.doi.org/10.1007/s13132-023-01329-2}},
doi = {{10.1007/s13132-023-01329-2}},
year = {{2023}},
}