We propose an endogenous growth model with offshoring to investigate its effects on product innovation and growth in … the country of origin. Offshoring is associated with reduced feedback from offshored plants to domestic labs as well as … static decision to relocate plants but not R&D. Hence, offshoring may be chosen by firms when it damages the growth rate of …

and to introduce new products and upgrade existing products. The effect of offshoring on R&D spending is significantly …

product demand can affect employment under these conditions. The analysis suggests that the longer-term effectiveness of …

employment are determined by optimizing choices in an imperfectly competitive setting. It turns out that underemployment …

product and in labour markets, in the determination of sectoral employment growth in Italy during the last forty years (1951 … markets were quantitatively more important than changes in product markets in the determination of sectoral employment growth … remained constant after 1973, our simulations suggest that, on average, industrial and service employment would have been …