This paper investigates the relation between greening in global companies and the upgrading of manufacturing subsidiaries’ technological capabilities. Drawing on a proprietary database of secondary source information about greening-related product and process upgrading, research and technology development, and functional upgrading at 25 Hungarian manufacturing subsidiaries, we identify two greening related mechanisms that propel the upgrading of subsidiaries’ technological capabilities. First, greening enhances the organisational decomposition of innovation, which facilitates manufacturing subsidiary scientists’ and technicians’ participation in the global R&D team of their owners. Second, greening related changes in corporate routines prompt the delegation of new, sophisticated business functions and activities to subsidiaries. Some of the new tasks require subsidiaries’ indigenous technology efforts.
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