"In-Sourcing " Boosts Quality Control

"Such moves make it harder for competitors to copy innovative technology." I don't know about that. Industrial espionage is a much larger concern that most consumers realize. Competitors will use (just about) any means necessary or available to learn what the other guy is up to. Of course, as soon as he can simply purchase one of my new items at the store, all bets are off. We will see how enforceable patents really are (we have had that discussion already).

"What conditions dictate production close to home and how big a benefit is that approach to quality control?" Today, as much as the protection of intellectual property, I would think civil unrest (unrest of any type; the Japan earthquake and tsunami comes to mind) in any particular location would be a very important consideration. Not just the location of the out-source manufacturing site, but the source of their raw materials, manpower, energy, packaging materials, tooling...