“…Rather, MNEs may gain advantage by explicitly seeking out ''distant'' institutional contexts that favor different sets of activities or firm capacities (Whitley, Morgan, Kelly, & Sharpe, 2003). For example, despite their very different institutional environments, German pharmaceuticals firms have located substantial R&D activities in more LMEs, such as the US, in order to take advantage of comparative institutional advantages in science-based radical innovation and thereby compensate for some weaknesses of German institutions (Lane & Probert, 2006).…”