The role of multinational enterprises in technological diversification in less developed regions: an analysis from Czechia

This article examines the role of multinational enterprises (MNEs) in technological diversification in less developed regions, focusing on Czechia. Using disaggregated patent-firm-level data, the study finds that MNEs contribute to technological diversification by entering new patent classes. However, diversification is slightly more prevalent among domestic entities (companies, research institutions), highlighting their vital role in regional innovation. Both MNEs and domestic actors diversify into more complex technologies, often targeting novel fields within the region, possibly to minimize knowledge spillovers. Diversification occurs in both metropolitan and non-metropolitan regions, but is more prevalent in metropolitan regions.