IT outsourcing - a source of innovation? : Microeconometric evidence for Germany


Bertschek, Irene ; Erdsiek, Daniel


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URL: https://ub-madoc.bib.uni-mannheim.de/32974
URN: urn:nbn:de:bsz:180-madoc-329745
Document Type: Working paper
Year of publication: 2012
The title of a journal, publication series: ZEW Discussion Papers
Volume: 88-012
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: D22 , L23 , O31,
Subject headings (SWD): Deutschland , Informationstechnik , betriebliches Informationssystem , Outsourcing , Innovation , verarbeitendes Gewerbe , Dienstleistungssektor
Keywords (English): IT outsourcing , product innovation , process innovation , firm-level data
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 signifcant and U-shaped relationship between ITO and product innovation activity of manufacturing firms, and a signifcant 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.




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