Innovation,the multinational corporation: Some implications for national science policy

In recent years the role of research and development has been examined with great interest to determine its causal relation to economic growth. Emerging from a number of studies is a realization that the process of innovation is the key variable. Innovation refers to that complex chain of events and processes which stretches from the conception of a new idea (often in an R & D lab) through to the acceptance in the market place of a new or improved good or service. This article sets out to examine the impact on the innovative potential of the corporate structure of a country when multinational corporations are active in such a country. In particular, the emphasis is on high technology manufacturing industries. The host country most often referred to will be Canada.