A strong innovation performance based on R&D, product development and the implementation of advanced production … offshoring on R&D and innovation activities of the firm in the home country. The analysis is based on a dataset of more than 3000 … manufacturing firms from seven European countries. We employ propensity score matching to compare R&D and innovation activities of …

associated with better firm performance. Our analysis demonstrates that policy support that aims at stimulating investment only … investment bottlenecks arising from market imperfections, while remaining non-discriminatory with a view at what sort of capital …