Outsourcing in Product Cycles |
| |
| Authors: | Hsiao‐Lei Chu |
| |
| Affiliation: | Department of Economics, National Tsing Hua University, Hsinchu, Taiwan |
| |
| Abstract: | In this quality‐ladder product‐cycle model, a production process consists of core research and development (R&D), complementary R&D and manufacturing; and there exist northern imitation, southern innovation, and outsourcing of complementary R&D as well as manufacturing from the North to the South. It is found that a policy to protect intellectual property rights or to subsidize R&D may reduce the aggregate rate of innovation. In addition, not every globalized production strategy is innovation‐improving. |
| |
| Keywords: | |
|
|
