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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. * This paper is a shortened version of a longer study that is available on request from the authors, who would like to thank Decio Fialho for research assistance and Sonia Dahab, Fernando Fajnzylber, Virene Matesco, Jorge M'attar, Jose Rossi and an anonymous referee for helpful comments. The opinions expressed are personal and do not necessarily reflect those of the Government of Brazil or the United Nations. 'See Caves et al. [1980, pp. 168-175] and Dahlman et al. [1987].

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