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The measurable share of international technology transfer i.e. trade with patents, licenses and technical know-how has been dominated by multinational companies for years, as also R&D internationalization i.e. setting up of own R&D laboratories abroad.
Beneficiaries of these investments seem to be primarily economies, which already have established a strong technological base in the corresponding industry.
In recent years, the internationalization trend has accelerated as a result of the greater speeds at which information technologies are being disseminated, making it easier for multinational firms to organize their research activities into transnational networks. Without multinational corporations, the third world will be left behind in the upward spiral towards a technologically advanced future. Corporations are often the only link to new technology and computers for the average citizen in a third world country. Without these interactions, there would be a similar situation to that in the Industrial Revolution.
In the 18th century, the colonizers did not see the importance of sharing their technology with their less fortunate counterparts. As a result, the third world countries emerged, and were in a disadvantageous position. Although any technological aid contradicts the naturally selfish nature of corporations, without this sharing, the third world would be pushed back even further, and the social gap between the two worlds would definitely increase.
However, as the underdeveloped world becomes more open to foreign investment, it will increase small corporations' abilities to expand and cut costs through investment in other countries. The first world will need to become more innovative in order to survive the changes which may ensue.
MNC/TNCs' positive contribution to R&D development in the host economies include:
However, the conflicts of interest for these MNC/TNCs include: