ABSTRACT
The technological change capabilities of the firms in this study are not very developed, and certainly far from being the innovative capabilities. Few firms seem able to conduct institutional search for innovation and/or basic research as defined in M. Fransman's taxonomy. The importance of previously accumulated knowledge and experience in facilitating the process of learning gives support to the notion of absorptive capacity suggested by W. Cohen & D. Levinthal. The importance of this capacity does vary in relation to different types of knowledge. Foreign connections is the second most important mechanism of learning. The case evidence in the study shows that in both sectors, this mechanism is mainly used for building capabilities in production, investment and linkage, but contributes, little to marketing capability. It is difficult to provide a ready-made recipe as a way of bench-marking firms' learning activities. The content of learning also expands over time.
