I analyse firms organisational choices when they face uncertainty about institutional conditions in foreign locations with heterogeneous final good producers and incomplete contracts. As firms learn about the conditions abroad, the increasing offshoring activity increases competition in the...

This paper examines the importance of localized knowledge for innovative exporters by observing their embeddedness in regional innovation systems and international knowledge flow by using trade data on openness. The study distinguishes between new competence creation as proxied by patent...