Category: Publication_Home

Effects of Production Offshoring on Innovation

Last week we received the good news that the paper “The Effects of Production Offshoring on R&D and Innovation in the Home Country” by myself, Bernhard Dachs, Steffen Kinkel and Oliver Som will be published by the Journal of Industrial and Business Economics.

In the paper we test the commonly held assumption that offshoring of production activities leads to less innovation in the home country. The analysis is based on a dataset of more than 3000 manufacturing firms from seven European countries. We find that offshoring firms employ more people in R&D and design, introduce more frequently new products, and invest more frequently in advanced process technologies compared to non-offshoring firms. Concerns that offshoring may hurt innovation because of the lost links between production and product development are not supported by the evidence.

Recruitment, Knowledge Integration and Modes of Innovation


About a week or so ago we received the favorable editorial decision about our (Sverre, Tore and I) paper “Recruitment, knowledge integration and modes of innovation” has been accepted for publication in Research Policy.

In the paper we investigate how the intrinsic characteristics of firms’ knowledge bases and processing routines have evolved with the past inflow of employees into the firm. The empirical analysis is based on linked public register and innovation survey data for Norway merged with the Norwegian innovation survey. We find that recruitment from universities, research institutes and higher education institutions increases the capacity of the firm to generate technical inventions. Yet, the organizational knowledge bases and processing routines on which commercial innovation output depends, are strengthend only by the recruitment that has occurred from related industries. In the conclusion we draw implications for research, management and policy.

Urban agglomerations, knowledge intensive services and innovation: Establishing the core connections

It took us a while to go from an idea to an accepted paper. But now Sverre Herstad and I have received the news that our paper “Urban agglomerations, knowledge intensive services and innovation: Establishing the core connections” is accepted for publication in Entrepreneurship and Regional Development.

In this paper we investigate how resources available in urban agglomerations influence the (1) organizational form, (2) innovation activity and (3) collaborative linkages of knowledge intensive business services firms (KIBS). We use rather comprehensive Norwegian data: We use the Norwegian employer-employee (LEED) registers for the years 2000 -2008 to connect the organizational forms and labour market positions of individual KIBS to their physical locations. For the decision to engage and for subsequent collaborative ties we utilize unique establishment-level information available from the Norwegian Community Innovation Survey of 2008.

We find that compared to their counterparts elsewhere, KIBS located in Norwegian large-city labour market regions are more likely to be independent from multi-establishment business organizations and thus reliant on resources available externally, in their locations. This is most pronounced in the central and western business districts of the capital, wherein independent KIBS exhibit high turnover of professionals and are less inclined to engage actively in innovation. Yet, those that do engage use the capital region economy as a platform for engaging with both domestic and international collaboration partners. Only by consecutively analysing these aspects and accounting for the selection processes involved is the empirical analysis able to uncover contrasting firm-level responses to the same urban economy resource base.