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.
NOTICE: this is the author’s version of a work that was accepted for publication in Futures. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Temouri, Y, Driffield, NL & Añón Higón, D, 'The future of offshoring FDI in high-tech sectors' Futures, vol 42, no. 9 (2010) DOI http://dx.doi.org/10.1016/j.futures.2010.08.024
- foreign direct investment
- high-tech sectors