This paper seeks to analyse technology flows and the coordination of knowle
dge activity within the context of technological innovation in multinationa
l firms. A kev element in analysing how technology is transferred internall
y within the firm is to consider the wider issue of knowledge and informati
on flows. As the pace of technological change and diffusion has speeded up
and the number and age of subsidiary operations has matured, multinationals
have been increasingly faced with transferring 'softer' forms of technolog
y and knowledge as the shift of competitive advance towards these more dise
mbodied forms of technological change has become more prominent. Developing
this therm the paper concludes by highlighting that concern about intra-fi
rm technology transfer has shifted from moving the direct 'results' of inno
vation or technical elements to the delivery of a wider 'envelope' or mecha
nism which allows the transfer of knowledge surrounding the innovation proc
ess.