How production offshoring impacts process innovation in the home country

Abstract: This thesis investigates how offshoring influences process innovation in the home country. This topic, although stimulating, has been understudied in the past by academia. I have elaborated two innovative hypotheses according to which relocations would hurt process innovation in the home country because 1) they are used as an alternative to process innovation, and 2) they damage trade-unions. To explore them, I have analyzed two case studies from Italy, the Embraco plant of Riva di Chieri (Piedmont) and the GKN plant of Campi Bisenzio (Tuscany). Both are representative of the Italian economy due to historical, industrial, and geographic reasons. Methodologically, I have conducted nine semi-structured interviews with different agents connected to the plants. The case studies confirm the two hypotheses. Consequently, the study can push on the research frontier on this issue, showing new ways in which relocations affect process innovation.