Offshoring Technology Innovation: A Case Study of Rare-earth Technology

Brian J. Fifarek, Francisco Veloso & Cliff I. Davidson
Many US firms are improving their individual competitiveness by offshoring manufacturing operations, services and, increasingly, knowledge work. Although research to date has maintained that these practices are beneficial to the offshoring firm and national economies, by reducing costs and expanding markets, little is known about the longer term effect of offshoring on the rate of innovation of home economies. This paper suggests that offshoring practices have adverse effects on innovation at the national home base....
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