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Mothers and daughters: heterogeneity of German direct investments in the Czech Republic
Münich, Daniel ; Srholec, Martin ; Moritz, M. ; Schäffler, J.
We assess heterogeneity of German affiliates in the Czech Republic and their mother companies in Germany. Using cluster analysis on micro firm level data from unique ReLoc survey, we identify five main groups of firms that can be interpreted as specializing in i) High-tech production; ii) Medium-tech production; iii) Low-tech production; iv) Interactive services; and v) Support services. The results are examined more closely by location, ownership and industry of the firms. Finally, we derive implications of these findings for technological upgrading.

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