The Transnational Activities of Small and Medium Sized Enterprises

measure of the rate of innovation --research-and-development (R&D) expenditure per employee compared to new patents received per employee -- does not adequately capture a unique feature of SMEs, namely that owners and managers are often themselves innovators. This is a study of the role, impact and policy implications of small and medium-sized transnational corporations (TNC's) in the developed economies as well as in the developing countries. After a description of the theoretical framework, the volume analyzes trends, patterns and salient features of small and medium-sized TNC's by emphasizing the problems in the transnationalization process and proposes measures and policy suggestions to promote foreign direct investment by small and medium-sized enterprises. The study is largely derived from a survey, conducted by the author, designed to obtain information about the characteristics and consequences of small and medium-sized transnational corporations' activities compared with those of large TNC's and indigenous firms. This volume describes the role of TNC's in domestic economies and their transnational activities.