intellectual property rights and of offshoring costs on the rate of innovation and on the offshoring intensity. In chapter 4 I … estimate knowledge spillovers through outsourcing relationships between German firms, measured by the number of those firms …

innovators are not protected against others appropriating their ideas, incentives for innovation are suboptimally low. Now, in … most industries and for most potential users, appropriating a foreign innovation is itself an investment decision fraught … with cost and risk. Nonetheless, standard theory predicts too little innovation. Arguably the problem is exacerbated by the …