Public procurement accounts for 15 to 20 percent of global GDP and is considered an effective innovation policy …

We study the implications of services trade for firm innovation. Using a quasi-experimental shift-share design, we find …’ innovation efficiency by mitigating decreasing economies of scale in in-house innovation efforts. As a result, firms become more … likely to outsource innovation efforts as they become more innovative, whereas the prevalence of offshoring depends on its …

public procurement tenders. However, there is no direct or broad empirical evidence on its innovation impact. There are even … doubts about its effectiveness as an innovation policy tool, as it does not require innovations as part of its contracts and …