Comparing domestic- and foreign-owned firms in Germany, this paper finds that foreign-owned firms are more likely to focus on short-term profit. This influence is particularly strong if the local managers of the German subsidiary are not sent from the foreign parent company. Moreover, the...

Globalization is a relevant issue for policymakers and firms alike. Although individuals, firms, and countries have always been connected in various ways throughout history, commentators generally claim that globalization has caused a once-unfathomable new height of connectedness at the dawn of...

Do knowledge externalities from FDI foster local innovative performance? Employing manufacturing data for the period 2001–2006 this paper investigates the impact of inward FDI on the generation of innovation. Adopting a Knowledge Production Function approach (KPF), we find that in the case of...