ABSTRACT
This chapter presents a background discussion on World Product Mandates (WPMs) related to research and development (R&D) and the patenting relationship. It provides a perspective on the forces and pressures that influence the distribution of R&D facilities in multinational enterprises (MNEs), ranging from highly concentrated cases centralised at corporate headquarters, to decentralised R&D facilities dispersed at subsidiary level. The chapter also provides a statistical analysis of Canadian patent data, supplemented by other publicly available information in order to provide an empirical perspective on the R&D and patenting characteristics of WPM operations in Canada. The presence in many markets has been and still is one of the main features of MNEs. On one side of the spectrum, some policymakers and academic writers believe that a WPM and an increase in R&D activity are synonymous. By transferring some modest R&D activity to their subsidiaries, MNEs can generate goodwill and improve their public posture to please host country governments.
