Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/68225
Authors: 
Bertschek. Irene
Erdsiek, Daniel
Year of Publication: 
2012
Series/Report no.: 
ZEW Discussion Papers 12-088
Abstract: 
Do firms sourcing out IT services redirect their resources to innovation activity? We attempt to answer this question by analysing a firm-level data set comprising 1453 firms from the German manufacturing and services sectors. Using different measures of IT outsourcing (ITO), the econometric estimations reveal a significant and U-shaped relationship between ITO and product innovation activity of manufacturing firms, and a significant and hump-shaped relationship between ITO and process innovation activity of services firms. A propensity score matching analysis takes account of reverse causality; the results underpin the relevance of ITO for services firms' realisation of process innovation.
Subjects: 
IT outsourcing
product innovation
process innovation
firm-level data
JEL: 
D22
L23
O31
Document Type: 
Working Paper

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