INDUSTRIAL IMPACTS OF FOREIGN ENTERPRISE: A CANADIAN TECHNOLOGICAL PERSPECTIVE

The technological underdevelopment of secondary manufacturing in Canada is inferred from patterns of trade, industrial structure, and the range of industrial functions performed within firms in Canada. These patterns are explained by reference to the behavior of foreign subsidiaries that have major direct and indirect effects on the linkages and developmental potential of the Canadian industrial system. Canadian manufacturing is found to have a low level of innovative capability because of inadequate R & D and product and design engineering in foreign and domestic firms. In view of the strong need for new policy initiatives, the components of a techno-industrial strategy are evaluated.