Technological Imports and Technological Effort: An Analysis of their Determinants in Brazilian Firms

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Logit analysis is employed to measure the effect of selected variables on the probability that a firm (1) purchases imported technology, (2) engages in research and development and (3) controls the quality of its production. Analysis of 4342 industrial establishments show these technological activities to share common determinants: all increase significantly with foreign ownership, exports and firm size. Other variables, including state ownership, profits and effective protection, affect only some activities. Imports of technology have a positive effect on technological effort and quality control.