Outsourcing and Innovation

Knott, Anne Marie; Argyres, Nicholas
January 2015
Academy of Management Annual Meeting Proceedings;2015, Vol. 2015 Issue 1, p1
Conference Proceeding
Michael Porter and Jan Rivkin in a March 2012 Harvard Business Review article argue that problems associated with the current recession pale in comparison to the problems of national competitiveness. "But the United States also faces a less visible but more fundamental challenge: a series of underlying structural changes that could permanently impair America's ability to maintain, much less raise, the living standards of its citizens. They define competitiveness as the ability to generate high output per employable person. Accordingly two of the central topics in the debate on US competitiveness are off-shoring (outsourcing jobs to other countries), which reduces the number of employed persons and innovation, which increases the productivity per employed person. Typically the two topics (outsourcing and innovation) are considered separately, but this panel presents a series of empirical papers suggesting the two are inter-related.


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