The innovation activities of foreign subsidiaries have been identified as an important source of competitive advantage … foreignness). We derive potential stumbling blocks in the innovation process theoretically and argue that these materialize as … innovation activities in Germany from various sectors. We find that foreign-controlled firms are not challenged by liability of …

Firms compete increasingly in an open innovation environment. Search strategies for external knowledge become therefore … firms pursue external knowledge source. A consensus exists that resource constrains force firms to balance both dimensions … are built through internal or external R&D activities) and the munificence of its innovation environment. We test these …