The objective of this paper is to show how public policies are extremely relevant means of enhancing the attractiveness of emerging countries, through their influence over the variables of Dunning's Eclectic Paradigm, one of the main theories that explain the internationalization process of firms. The three variables that make up the model - ownership, location and internalization - determine the feasibility of a company establishing a subsidiary in another country to explore a competitive advantage, compared to the alternative of transferring this asset to a local firm, by means of a license, or through product exports. Through the analysis of the Informatics Act, launched in 1991 to stimulate the local production of informatics and telecommunication equipment, we conclude that it was essential to attract big multinational companies. The methodology included a qualitative approach and the multiple study case method, with semi-structured interviews in three companies and four institutes. The results show that the requirement for doing R&D activities led to the creation of private research institutes, which were in great part responsible for the dissemination of knowledge and local learning, especially in the high technology pole of Campinas. We conclude that the government has a fundamental role in defining instruments that increase the attractiveness of the country for the performance of innovation activities by multinational companies.
eclectic paradigm; multinational companies; technological innovation; Informatics Act; tax incentives
