TY - GEN A1 - Steinberg, Philip J. A1 - Urbig, Diemo A1 - Procher, Vivien D. T1 - Too much or too little of R&D offshoring: The impact of captive offshoring and contract offshoring on innovation performance T2 - Research Policy N2 - Innovating firms may acquire foreign knowledge and improve their innovation performance by offshoring their R&D activities to their own foreign affiliates (captive offshoring) as well as by contracting out their R&D to external foreign parties (contract offshoring). This study examines the impact of both R&D offshoring strategies on innovation performance. Based on a panel dataset of 2421 R&D-active firms in Germany, we demonstrate that captive offshoring and contract offshoring differ fundamentally in their impact on firm innovation performance. At low degrees of offshoring, contract offshoring positively affects innovation performance and is preferable over captive offshoring. At larger degrees of offshoring, captive offshoring becomes more beneficial while contract offshoring is disadvantageous. Both offshoring strategies eventually harm innovation performance when excessively employed. Furthermore, the R&D offshoring-performance relationship is leveraged by R&D intensity, such that firms with a larger knowledge stock benefit stronger from both captive and contract offshoring. KW - R&D offshoring KW - Innovation KW - Contract offshoring KW - Captive offshoring KW - R&D intensity Y1 - 2021 UR - https://opus4.kobv.de/opus4-UBICO/frontdoor/index/index/docId/27206 UR - http://dx.doi.org/10.1016/j.respol.2017.08.008 SN - 1873-7625 VL - 46 IS - 10 SP - 1810 EP - 1823 ER -