Global Sourcing in Innovation: Theory and Evidence from the Information Technology Hardware Industry

Economists, including Paul Samuelson and Jagdish Bhagwati, vigorously debate whether offshore outsourcing in high-tech industries helps or harms the U.S. economy. The main issue is whether insourcing countries, such as China or India, will catch up with and eventually outcompete the U.S. Moreover, the dearth of off shore outsourcing data has hindered the study of the impact of offshore outsourcing. To explore the impact of … [ Read more ]