Ownership and Technological Capabilities in Brazil

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.Technological Capability, Multinational Companies, Brazilian Industry

Foreign-owned firms and technological capabilities in the Argentinean manufacturing industry

This deals with the technological development implications of the substantial and long-dated presence of foreign-owned affiliates in the Argentinean manufacturing industry. It put forward the argument that the learning process of foreign-owned firms should be central in the analysis of the technological impacts of inward FDI. In other words, FDI impacts to host economies are dependent not exclusively on the technology and knowledge that multinational corporations are willing to transfer to their overseas affiliates, nor on the absorptive capacity of domestic firms. Instead, the technological learning that takes place within the foreign-owned firms is crucial. In order to shed some light on the level of learning reached by foreignowned firms integrating the Argentinean economy, this paper analyses the technological profiles of MNC affiliates in the manufacturing industry, and compares them with those of domestically-owned firms. This analysis is based on proxies for different levels of technological capabilities, calculated by means of the second Argentinean innovation survey, which was carried out by INDEC, the Argentinean National Council of Statistics, for the period 1998-2001. The analysis suggests that foreign-owned affiliates seem to play an important role in terms of diffusion of technologies generated elsewhere. Yet, the results are not so clear when the local generation of knowledge and technology is considered. In general terms, the analytical exercise made here suggests reasonable development of operational capabilities, coupled with shallow interaction, monitoring, improvement and generation capabilities both by foreign affiliates and domestics firms. In other words, the findings suggest the accumulation of substantial capabilities for using existing technologies, but only meagre capabilities for locally-generated new ones.Foreign-owned Affiliates, Manufacturing Industry, Technological Capability, Diffusion of Innovations, Organizational Learning, Argentina

Thinking locally: Exploring the importance of a subsidiary-centered model of FDI-related spillovers in Brazil

This paper investigates FDI-related spillovers in Brazil for the period 1996-2005. In contrast to most previous recent studies, which have failed to identify any significant effects in emerging economies, we found that horizontal spillovers did arise in Brazil. However, they did not arise simply as a consequence of general FDI-mediated technology transfer from MNC headquarters, as the standard approach presumes. Nor were they associated with expected inter-industry differences in technological intensity, or with differences in domestic firms’ absorptive capability. Instead, spillovers were associated with the existence of particular kinds of localized knowledge-creation activities undertaken by subsidiaries. We discuss the theory and policy implications that emerge from these results.FDI spillovers, subsidiaries, heterogeneity, localized innovation, Brazil, productivity, innovation

A New Nexus Between Foreign Direct Investment, Industrial and Innovation Policies

This paper deals with the interplay between foreign direct investment (FDI) and the industrial and innovation policies of host developing economies. It aims to redefine the nexus between these different, though yet strongly interconnected policy areas, by bringing the affiliates of multinational corporations already established in a host economy to the first level of analysis. It argues that host country governments should concentrate on enhancing innovativeness and development of existing foreign-owned affiliates, instead of striving to attract higher volumes of FDI inflows.Foreign Direct Investment, FDI, Foreign-owned Affiliates, Industrial Policy, Innovation Policy

Knowledge Base Determinants of Technology Sourcing in the Clean Development Mechanism Projects

The Clean Development Mechanism (CDM) is one of the three greenhouse gas emission reduction and trading instruments of the Kyoto Protocol (KP). The CDM allows governments and business entities from developed countries to offset their emissions liabilities by reducing or avoiding emissions in developing countries, where it is often cheaper to do so. Examples of CDM projects include the installation of various renewable energy producing facilities, cutting the GHG emissions in industry and waste management, or projects focused on improving energy efficiency. From the sustainable development perspectives CDM has been alleged as a new channel of transfer and diffusion of climate friendly technologies (CFT) in developing countries. However we are evidencing that the majority of the CDM projects deploy local sources of technology, which challenges the North- South technology transfer paradigm established under the sustainable development agenda of the KP. This paper is an attempt to explain technology sourcing patterns in CDM projects through employment of knowledge base determinants. On the basis of an empirical analysis we conclude that in countries with a stronger knowledge base in CFT, CDM project implementers tend to go for local and combined technologies and less for foreign technologies.Clean Development Mechanism, CDM, Kyoto Protocol, Technology

Drivers of Brazilian foreign investments – technology seeking and technology exploiting as determinants of emerging FDI

The paper uses data from a recent survey on Brazilian firms to investigate the role of technology in the internationalization of firms, and whether if affects the destination of foreign investments. Emerging markets FDI is a much-debated topic these days, and their technology-seeking purpose is a strong driver for the internationalization, as firms are searching for assets in order to compete. We apply a logit model to seek for the influence of determinants and some firms’ competitive advantages on the choice for developed countries as a destination for Brazilian FDI. We also test which modes of entry are preferred when investing in a developed destination. Our results point out the importance of a skilled labor force on the decisions to invest in developed destinations. We found out that technology is an asset used as a competitive resource, and that Brazilian firms do not undertake technology-seeking investments in developed countries, and that acquisitions and Greenfield investments are the main modes of entry.foreign direct investments, emerging markets, technology, innovation, competitive advantages, multinational corporations

Absorptive capacity in technological learning in clean development mechanism projects

Technology transfer in Clean Development Mechanism (CDM) projects of the Kyoto Protocol has become one of the important issues addressed both in policy agenda and by academic scholars. In many CDM project host countries, technology transfer is among the key provisions of sustainable development objectives of the CDM projects. This study is an effort to investigate CDM projects' related technology transfer process from the organizational learning perspective. The prerequisite for successful technology transfer and organizational technological learning is to foster technological capabilities (TC) of an organization. In this study we used data from our survey of the CDM project host organizations in four largest CDM host countries India, Brazil, Mexico and China. We assessed TC building progress and studied various characteristics of the organizations. The present paper focuses on absorptive capacity related determinants of technological capability building in the CDM projects. Absorptive capacity is a multidimensional concept thus we investigated the effect of the dimensions such as prior knowledge, personnel qualification, and training efforts. A strong positive association was established between prior knowledge and TC building; and less for qualification variable. Besides we proved a curvilinear relationship between prior knowledge and TC building outcomes.Clean Development Mechanism, Technology transfer, technological capability building, technological learning, absorptive capacity

Global Players from Brazil: drivers and challenges in the internationalization process of Brazilian firms

This chapter discusses general patterns of internationalization of Brazilian firms. It highlights the main determinants for internationalization, the main destinations, as well as the modes of entry that Brazilian firms employ overseas. The paper also discusses some aspects related to the technological capabilities of Brazilian firms that are related to their internationalization strategies, in terms of both the exploitation of such advantages and the search for technological assets abroad.foreign direct investments, multinationals, emerging markets, internationalization strategies

Beyond the emission market: Kyoto and the international expansion of waste management firms

This paper analyses the participation of firms without GHG emission liabilities as technology providers in CDM and JI projects, the flexibility mechanisms of the Kyoto Protocol. It argues that the motivations for those firms to engaging in CDM and JI projects is based on market stimuli beyond those related to the emission market itself. Instead, their motivations are largely associated with search for new markets where their technological resources and expertise can be exploited. The analysis is based on three firms from the Dutch waste management industry. These cases suggest that the Kyoto's mechanisms compensate to some extent the weakness of the underdeveloped waste management sector in developing and transition economies.Waste Management Industry, Kyoto Protocol, International Expansion, Firm-specific advantages

O setor de autopeças no Brasil : desafios e mudanças na decada de noventa

Orientador: Sergio Robles Reis de QueirozDissertação (mestrado) - Universidade Estadual de Campinas, Instituto de GeocienciasMestrad