Abstract
This article focuses on the roles innovation and information technology play in the multinational enterprise. In recent years there has been a steady expansion in the literature that relates the internationalization of production to the development and transfer of technology by multinational enterprises (MNEs). It is a literature that can be dated back at least to John Dunning's (1958) seminal study of the impact of US MNEs upon UK technology and productivity, and Ray Vernon's (1966) development of the product cycle model (PCM) as an explanation of the technological dynamism associated with the growth of US foreign direct investment (FDI) in Europe in the 1950s and 1960s.