The spatial distribution of innovation activities has become a central topic in economic theory and policy. While the discussion on the international distribution of innovation activities has been intense, there is still no consensus in theory regarding the causes of spatial differentiation in corporate innovations at the subnational level. Previous studies have focused on individual potential determinants of the spatial dispersion of corporate innovation activities, but there is a lack of a theoretical framework for the many partial effects. Matthias Christian Freund examines existing economic geographic, macroeconomic, and business management explanatory and design approaches. From this, he develops a multi-level production theory model to explain the subnational differentiation of corporate innovations.