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Outsourcing in Product Cycles

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  • Hsiao-Lei Chu

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.

Suggested Citation

  • Hsiao-Lei Chu, 2015. "Outsourcing in Product Cycles," Review of Development Economics, Wiley Blackwell, vol. 19(4), pages 941-956, November.
    • Handle: RePEc:bla:rdevec:v:19:y:2015:i:4:p:941-956
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    References listed on IDEAS

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