In recent years there has been a spectacular growth in the technological capabilities of developing countries and in outward direct investment from firms based in these countries. Technological Innovation and Third World Multinationals argues that these phenomena are related; the emerging technological capabilities of Third World firms are allied to the cumulative growth of their outward direct investment. The existence and accumulation of technological capabilities are thus determinants as well as effects of these firms' international production activities.

Evidence is presented on the unique, innovative activities of MNEs from Asia and Latin America which have become increasingly important as international production evolves and as developing countries move through stages of industrial development.