‘Home-sourcing’ and closer value chains in mature economies: the case of Spanish manufacturing


This paper offers a novel perspective on manufacturing home-sourcing. We present evidence that home-sourcing occurs in the context of a new competitive environment where the relative importance of scale economies versus variety is altered, and a recoupling of innovation and production within industrial ecosystems becomes desirable. We look at the determinants of manufacturing home-sourcing. We find that R&D-intensive businesses with core non-standardized products are more likely to switch sourcing of components to the home economy from abroad. Our findings provide evidence in favour of increasing trends towards closer value chains for knowledge-intensive production, suggesting that the possibilities for (and potential impact of) home-sourcing have not been fully recognised as pathways to industrial and economic renewal in mature economies. The implications for industrial policy are to focus on the resilience of existing national industrial ecosystems and their attractiveness and ability to integrate incoming business opportunities.

Publication DOI: https://doi.org/10.1093/cje/bey020
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > School of Social Sciences & Humanities > Aston Centre for Europe
College of Business and Social Sciences > Aston Business School
Additional Information: © The Author(s) 2018. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contact journals.permissions@oup.com
Uncontrolled Keywords: Reshoring,home-sourcing,manufacturing,global value chains,GVCs,Industrial policy
Publication ISSN: 1464-3545
Last Modified: 20 May 2024 07:27
Date Deposited: 22 Jan 2019 11:28
Full Text Link:
Related URLs: https://academi ... /6/1567/5067309 (Publisher URL)
PURE Output Type: Article
Published Date: 2018-11-09
Published Online Date: 2018-08-06
Accepted Date: 2018-03-15
Authors: Bailey, David G (ORCID Profile 0000-0002-1956-0556)
Corradini, Carlo (ORCID Profile 0000-0001-9164-4108)
De Propris, Lisa


Export / Share Citation


Additional statistics for this record