Notes on Capital Control And Innovative Capability In The Industryof The S. Paulo State, Brazil

Abstract

In the nineties, the Brazilian industry has been undergoing deep sectorial process of restructuration. An important factor related to this process is the increase of foreign direct investment (FDI), of which a significant share is intended for mergers and acquisitions. An issue that arises from this aspect of industrial restructuring refers to the impacts on the technological capability of the Brazilian industry and, consequently, for its long-term competitivity. A way to analyze this question is through the relation between capital control and technological capability in two dimensions: operating capability and innovative capability. This work refers to the relation: capital control – capability based on the innovative dimension. It has as purpose to analyze some data about the characteristics of the patrimonial structure and the innovative capability of industrial sector in the São Paulo State, the most industrialized state in Brazil. The source of information is the Survey on Economic Activity in the São Paulo State – PAEP/SEADE: a wide database for 1996, which considers 10,000 companies in the industrial sector. The information available in PAEP database on innovative activities is according to the directives guidelines of Oslo Manual (OCDE) for innovation surveys. The data will be analyzed according to the source of company’s (domestic or foreign) majority capital and by groups of industries according to ISIC Rev. 3 classification.