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Offshoring & Innovation in the Media

Also the Austrian business weekly Format features Bernhard Dachs‘ of AIT foresight and policy development and my analysis. The paper that this refers to can be found here.

Offshoring & Innovation in the Media

Today  an article in the NZZ (Neue Züricher Zeitung) features our analysis of offshoring.

Press release

Today’s latest MCI press release features our offshoring study: see here.

Offshoring of Production Activities & Innovation in the Home Country

Today the study “The Effects of Production Offshoring on R&D and Innovation in the Home Country” by Bernhard Dachs of the Austrian Institute of Technology and myself was published online.

A strong innovation performance based on R&D, product development and the implementation of advanced production technologies is key for the long-term competitiveness of European economies. This study investigates the effects of production offshoring on research and development (R&D) and innovation activities of the firm in the home country. The analysis is based on a dataset of more than 3000 manufacturing firms from seven European countries taken from the magnificent  European Manufacturing Survey.

We employ propensity score matching to compare R&D and innovation activities of firms which have offshored production activities in a previous period to a control group of non-offshoring firms.

The analysis finds no negative effect of production offshoring on innovation and technological capabilities of firms in the home country. On contrary, offshoring firms spend significantly more on R&D or product design, and invest more in process innovation than non-offshoring firms. These results support a view on internationalization of firms that regards offshoring as a strategy of international expansion, and not a passive reaction of firms to a loss of their competitiveness.

Our results indicate that this expansion goes hand in hand with innovation and process modernization at home.



Innovation & Design?

Obviously even design icons might attract considerable criticism for their new product design.

Innovation & Design

It seems that more often than not, even when design and innovation are mentioned together, there is no genuine design orientation behind innovation. Sometimes however, design and innovation are the basis of a successful business model.

Innovation & Design

“Design-orientation has to be integrated into any corporate strategy” says Rudolf Greger. From this follows immediately that design-orientation has to be integrated into the innovation process.