ABSTRACT
The acquisition and exercise of more technological capability within Canada continues to be a worthy objective. As one approach to reaching this objective, some Canadian governments have been strongly urging foreign based parent companies to grant world product mandates (WPMs) to Canadian subsidiaries for the development of specific products. The intended benefits of WPMs for both Canada and the subsidiary have already been described (Advisory Committee on Global Product Mandating, 1980; Science Council of Canada, 1980). Governments seem to believe that a combination of research and development (R&D) incentives along with pressure exerted on corporate offices will induce foreign parents to assign more WPMs to Canadian subsidiaries. This chapter argues that this approach will probably prove unsuccessful in generating substantial increases in the number of WPMs in Canada unless the subsidiaries themselves become much more adept at the entrepreneurial development of new opportunities.
