Discussion Paper 16
IT Outsourcing - A Source of Innovation? - Microeconometric Evidence for Germany
Irene Bertschek and Daniel Erdsiek
ZEW Mannheim, ICT Research Group, University of Mannheim
Does IT outsourcing (ITO) allow firms to redirect their resources on core activities? Are IT outsourcing firms more innovative than non-IT outsourcing firms? Do manufacturing firms behave differently from services firms? We attempt to answer these questions by analysing a firm-level data set comprising 1453 firms from the German manufacturing and services sectors. The econometric analysis shows that ITO plays a significant role for the product innovation activity of manufacturing firms. In the service sector, by contrast, ITO is important for process innovation.
This paper of December 2012 replaces all previous versions