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Article
Off-shoring, specialization and R&D
Review of Income and Wealth, forthcoming (2016)
  • Ioannis Bournakis
  • Michela Vecchi, Middlesex University - U.K.
  • Francesco Venturini
Abstract
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.
Keywords
  • High-tech specialization,
  • off-shoring,
  • productivity,
  • R&D,
  • OECD industries
Disciplines
Publication Date
2016
Citation Information
Ioannis Bournakis, Michela Vecchi and Francesco Venturini. "Off-shoring, specialization and R&D" Review of Income and Wealth, forthcoming (2016)
Available at: http://works.bepress.com/francesco_venturini/35/