This paper studies the implications of innovation offshoring and reshoring for long-run productivity growth in a North–South framework that features a tension in the firm-level innovation location decision between accessing technical knowledge in an asset-wealthy country and sourcing low-cost high-skilled labor in an asset-poor country. We show that, with trade costs and imperfect international knowledge diffusion, industry and innovation tend to concentrate geographically in proximity to the larger market of the asset-wealthy North when trade costs are high. Investigating the effects of greater economic integration, we find that an improvement in knowledge diffusion increases the share of firms offshoring innovation to the asset-poor South to take advantage of lower high-skilled wages, potentially raising the rate of productivity growth. A decrease in trade costs, however, induces firms to reshore innovation to the asset-wealthy North to take advantage of greater knowledge spillovers, with rising high-skilled wages potentially lowering the productivity growth rate.

中文翻译：

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创新离岸和回流，完全内生增长

本文研究了南北框架下创新离岸和回流对长期生产率增长的影响，该框架的特点是企业层面的创新地点决策在资产富裕国家获取技术知识与采购低成本高成本之间存在紧张关系。 - 资产匮乏国家的熟练劳动力。我们表明，由于贸易成本和国际知识传播不完善，当贸易成本较高时，工业和创新往往在地理上集中在资产富裕的北方更大市场附近。在研究更大程度的经济一体化的影响时，我们发现，知识传播的改善增加了将创新外包到资产匮乏的南方的公司的比例，以利用较低的高技能工资，从而有可能提高生产率增长率。