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Improved innovative performance through production offshoring

Tue, 08/06/2013 - 10:55am
Management Center Innsbruck

In the last few decades, European companies have moved much of their manufacturing abroad. A joint study produced by AIT Austrian Institute of Technology and the MCI Management Center Innsbruck shows that such companies spend significantly more on R&D or product design, and invest more in process innovation than non-offshoring firms. The results support the view that offshoring is not a reaction to the loss of international competitiveness but rather part of a strategy of expansion adopted by innovative companies.

The report was prepared in the framework of a program of the Austrian Ministry of Economics (Research Centre International Economics) and is based on a dataset of more than 3,000 manufacturing companies from seven European countries.

Research Centre International Economics (FIW) is part of the Austrian federal government’s internationalization offensive. It is run on behalf of the Ministry of Economics, Family and Youth (BMWFJ) by the following three institutes: Austrian Institute of Economic Research (WIFO), Vienna Institute for International Economic Studies (wiiw) and Computing Centre for Economics and Social Sciences (WSR). It offers access to international foreign trade databases, a research platform and information on subjects related to foreign trade.

The FIW’s 2013/14 research reports show the results of the three topics “Trends and effects of foreign direct investment”, “Austria's Trade in Value Added” and “Analysis of Austria’s trade balance”, which were announced in 2012 by the Austrian Federal Ministry of Economics, Family and Youth in the framework of the FIW and funded through the Austrian government’s internationalization initiative.

View Report

Source: Management Center Innsbruck

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