Title: Multinational enterprises and technology transfer

Authors: lngeborg Menzler-Hokkanen

Addresses: Helsinki School of Economics, Runeberginkatu 14-16, FIN-00100 Helsinki, Finland

Abstract: The diversity of the roles played by foreign R&D in multinational enterprises is demonstrated in this paper. In many multinational enterprises (MNEs) R&D has taken its place among the key internationalized functions. It is recognized that this enhances MNEs| ability to utilize diverse sources of scientific input efficiently, and to do so as part of an increasingly globalized basis of competition. In formulating their attitudes to multinationals| R&D units the host countries also need to acknowledge the diversity of the roles such units play, and thus also to consider the range of potential benefits and costs which they bring. The granting of world product mandates to subsidiaries in particular merits further investigation as a possible means whereby multinationals may create production facilities which possess independent innovative potential of their own.

Keywords: multinational enterprises; MNEs; foreign direct investment; FDI; vertical integration; knowledge-based industries; social know-how; natural know-how; competitive advantage; information asymmetry; R&D; technology transfer; innovation; research and development.

DOI: 10.1504/IJTM.1995.025628

International Journal of Technology Management, 1995 Vol.10 No.2/3, pp.293 - 310

Published online: 23 May 2009 *

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