Innovation and the International Firm Structure: Theory and Evidence from German Firm-Level Data

Hansen, Thorsten (April 2010): Innovation and the International Firm Structure: Theory and Evidence from German Firm-Level Data. Discussion Papers in Economics 2010-20

Abstract

This paper studies the impact of innovation on the organizational structure. The theoretical framework predicts that a larger parental pool of knowledge raises the probability of oshoring. This holds in a national as well as an international context. However, when the producer loses territorial protection, the changeover from non-integration to integration is delayed. Employing data on German rms investing in Eastern Europe nds empirical evidence for the theoretical predictions. The results are robust to dierent measurements and an instrumental variable regression.

• Item Type: Paper
• Form of publication: Preprint
• Keywords: offshoring, innovation, firm structure
• Faculties: Economics; Economics > Munich Discussion Papers in Economics; Economics > Chairs > Chair of International Economics
• Subjects: 300 Social sciences > 300 Social sciences, sociology and anthropology; 300 Social sciences > 330 Economics
• JEL Classification: D23, D51, F23, L14, L21, L22, L23
• Language: English

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