Germany through firm-specific advantages. Still, some face significant challenges. A submarket analysis shows that home market … advantages are more deeply rooted in the Western part of Germany and that foreign competitors find a more accessible competitive … environment in Eastern Germany. Therefore, East Germany is a superior platform for deploying effective and efficient …

country knowledge. We use a broad sample of roughly 1,000 firms in Germany to empirically test the existence of liabilities of …

innovation activities in Germany from various sectors. We find that foreign-controlled firms are not challenged by liability of …

more than 7,000 firm observations in Germany over a multi-year period. Our theoretical predictions are only supported for …