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Showing posts with the label direct foreign investment

German Innovation through Foreign Subsidiaries

American firms are not the only ones seeking competitive advantages using innovative development in emerging markets. German companies, with fingers in a number of different countries, are trying to better understand how innovation and knowledge based strategies impact their competitiveness. Research helps highlight the competitiveness of German companies in international markets and how this impacts their firm’s ability to compete internationally. Innovation activities in multinational firms do not live within a vacuum and are subject to and influenced by the environmental impact of its host country. Innovative activities of firms abroad depend on the technological abilities and capabilities of the home country (le Bas & Sierra, 2002).   It is difficult to develop innovation through home grown businesses in emerging markets without the support of the home country. Information and abilities are transferred from the home country to the host country through the subsidi