In recent years, multinational enterprises have built up considerable research and development (R&D) activities at locations outside their home countries. This trend has raised fears that overseas R&D may substitute similar activities in the home countries. To test this assumption, this paper...

This paper tests the assumption that offshoring of production activities leads to less innovation in the home country. The analysis is based on a dataset of more than 3000 manufacturing firms from seven European countries. We find that offshoring firms employ more people in R&D and design,...

The shift of employment from lower to higher productive firms is an important driver for structural change and industry dynamics. We investigate this reallocation in terms of employment gains and losses from innovation. New employment created by product innovation may be offset by employment...

A growing literature investigates how firms’ innovation input reacts to changes in the business cycle. However, so far there is no evidence whether there is cyclicality in the effects of innovation on firm performance as well. In this paper, we investigate the employment effects of innovations...

The main aim of this study is to explain the differences between innovation motives and the behaviour of subsidiaries of different types (especially the emerging-emerging type) and to potentially uncover motives and behaviours that are inconsistent with the current theory, which mainly focuses...