As automation becomes a cornerstone of industrial strategy, many expect industries to reshore and rely more on domestic suppliers. But new research by Hylke Dijkstra and Konstantin M. Wacker (University of Groningen), as part of the TWIN SEEDS project, challenges that assumption with compelling evidence.

Drawing on data from 15 manufacturing sectors across 35 countries, the study finds that robotisation doesn’t lead to more domestic sourcing. Instead, it drives overall growth, boosting output, employment, and demand for both domestic and foreign inputs. In other words, rather than replacing global links, automation appears to scale them. Only in declining industries do robots lead to more domestic inputs, likely driven by uncertainty rather than deliberate reshoring strategies.

The key takeaway? Robotisation and globalisation aren’t opposing forces. The most successful automated industries remain globally integrated, combining technological advancement with strong international supply chain links.

This research offers timely insights for policymakers navigating the intersection of trade, technology, and resilience.

📄 Read the full working paper via wiiw: https://wiiw.ac.at/robots-shoring-patterns-and-employment-what-are-the-linkages-p-7383.html