Procurement that pays: Foreign outsourcing, innovation, and profit dynamics

Authors

• Görg
• H.
• Hanley
• A.

Publication Date

This column examines the impact of offshore outsourcing on firms’ profits and innovation. Using data on 2,000 Irish firms, it shows that the purchase of foreign inputs raises both profits and innovation. Offshore outsourcing seems to improve competitiveness and bode well for an economy’s long-term economic health.

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