Ownership and Technological Capabilities in Brazil

Abstract

Over the last fifty years, foreign-owned firms have played an important role in developing the Brazilian industry. The focus of debate on the impacts of these firms upon technical change in Brazil has been on the use of technology. However, a further understanding of how they can help to deepen local technological capabilities (TCs) is crucial. The research we are developing is an attempt to throw some light on this issue. As part of this task, this paper aims to present some proxies for TCs, comparing foreign- and domestic-owned firms. Farther demonstrating a low technological performance in the Brazilian industry, the figures point to a moderate TCs-building process, both by foreign- and domestic-owned firms. This suggests that foreign-owned firms do not per si mean local accumulation of deeper technological capabilities.