In this paper we examine the process of technological capability building in the Brazilian industry. The paper is based on the IBGE PINTEC report published in 2002. A discussion is made about the nature and the intensity of the firm's innovative activities, the novelty of the implemented changes, the sources of information, and the interrelations with suppliers and customers. We investigate the cooperation relations between firms and research institutions, looking for the existence of a national system of innovation. We investigate the impact of this relationship on the innovative performance of the firms in the context of the knowledge-based economy. Finally, we argue that the innovations introduced by the Brazilian industrial firms are closer to a casual process of equipment modernization rather than to the development of new products or processes based on R&D investments.
Innovation; Brazilian industry and technological capability
