6533b833fe1ef96bd129cabe

RESEARCH PRODUCT

The futures of offshoring FDI in high-tech sectors

Yama TemouriDolores Añón HigónNigel Driffield

subject

Sociology and Political ScienceOffshoringbusiness.industryInternational tradeForeign direct investmentInternational economicsInternational businessDevelopmentHigh techIndigenousOutsourcingPhenomenonLower costBusiness and International Managementbusiness

description

This paper examines what is still a relatively new phenomenon in the literature, the outsourcing/offshoring of high-technology manufacturing and services. This has become a concern for both policy makers and academics for two reasons. Firstly, policy makers have become concerned that the offshoring of high-technology sectors in the West will follow the more labour intensive sectors, and move to lower cost locations. Secondly, international business theory has tended to view low costs, and high levels of indigenous technological development as being the two main drivers of location advantage in the attraction of FDI. We show that this may not be the case for offshored high-technology manufacturing or services.

https://doi.org/10.1016/j.futures.2010.08.024