Quo vadis? : The entry into new technologies by foreign subsidiaries of the multinational corporation

This paper addresses the evolution of technological capabilities in foreign subsidiaries of the multinational corporation. We specifically test for the existence of patterns in the timing of entry into new technologies in foreign subsidiaries which have once proven their capacity to contribute significantly to the strategic development of the multinational group. Event history analysis of the complete patenting activities by 157 foreign subsidiaries of 21 Swedish multinationals over the 1893-1990 period reveals statistically significant acceleration of entry into new technologies at relatively moderate hazard rates. The results lend support for established theorizing around the evolution of technological capabilities in foreign subsidiaries, but question extreme views on the growing strategic importance of foreign subsidiaries of the multinational corporation.