text: actual concept of technical change was modified so that Its 0 roots ar.e considered to be endogenous rather than exogenous. ~ The works above also demonstrate this concept. C'll 5. Rosenburg (1965 pg. 37 and chapter 3). 2-1 7 In both arguments, because of the nature of local economies, the level of foreign Investment Is considered as a factor Influencing technical change(6}, since subsidiary companies clearly dominating a particular sector of the economy may define the type of technology used In the different productive processes and the way In which they are assimilated. However, the role and lfluence assigned to foreign Investment-may vary significantly In each approach. The first argument has tried to show that foreign subsidiaries tend to be a substitute for local capability and to exclude It, becuase of the way In which they are assimilated Into the local market. Technology Is Included as part of an Initial package and reproduces -often Identically -processes either currently being used by the parent company or rejected by lt. The process of Import substitution based largely on the entry of transnational corporations, Is said to have conditioned local research and development, since absorbed technology does not employ special Rand 0 expenditure, nor major adaptation to local condltlons(7). That fs, It Is an argument, which tends to emphasise the minimization and exclusion of local development. What Is more, various authors have shown that because of the Integration of transnational firms, bringing their own technological assets, national firms have had to obtain foreign I lcences as the only viable way of competing In markets where codes of conduct are f !xed by the behav lour of foreign subsidiaries. The clearest demonstration of this would be the high percentage of sales under licence, and It would also explain the reduced level of local research and the Imitative conduct of 
analysis: The text appears to discuss the impact of foreign investment on the development of local technology and industries, particularly in the context of import substitution and the behavior of transnational corporations. It highlights the potential for foreign investment to exclude local development and reduce the need for local research and development.