 A second area where Reading School theorists have made a significant impact has been the innovation and research and development performance of multinational enterprise.Major contributions have been made in this area by Robert Pearce, whose 1989 book was one of the first systematic analyses of the behaviour of the research and development activities of subsidiaries of multinational enterprise.In parallel, John Cantwell has integrated internalization theory with the economics of technological change and Schumpeterian and evolutionary economics.