ABSTRACT
A far-reaching process of change is underway in the practice of technology policy in DCs which is illustrated by the example of Brazil. Technology policy in DCs was in the past characterized by a large measure of voluntarism. Policies were shaped by the will of the political actors, not the technological actors, and largely ignored the incentive structure and rationality of action relevant to the latter. Technology policy was viewed in isolation from other policies which often had far more influence on technological behavior: a turbulent economic macropolicy that led to a situation in which firms thought in the short term, perceived the state as the cause of turbulence, and failed to respond to incentives offered by technology policy; a restrictive monetary policy that led firms not to invest, not even in technology; a public budget policy that (especially in phases of structural adjustment) made employment in the public sector financially unattractive.
