The Transfer of Technology to Latecomer Economies in the 19th-Century:
The Case of Minas Gerais, Brazil
Sergio de Oliveira Birchal
Prof.
PhD Economic History (LSE),
Associate Professor
of the Production Engineering Department of the Federal University of Minas Gerais (UFMG),
Belo Horizonte, Brazil
Abstract:
This paper examines the transfer of technology to latecomer economies by investigating the case of 19th-century Minas Gerais, Brazil. It discusses the dependence of various firms on foreign technical knowledge and the limits to the development of an indigenous technology during this period. It also examines the main sources of technology of mineiro firms during the last century and the nature of the technological dependence of each industry investigated. As local production of technical knowledge was virtually non-existent, most industries in 19th-century Minas Gerais relied on foreign technology. Among the industries investigated three - textile, electricity generating, and transport industries - relied exclusively on foreign technology. Consequently, they also relied upon foreign sources for the supply of materials, components, parts, equipment, and machinery. The only industry in 19th-century Minas Gerais to employ an indigenous technology was the iron industry, although a few foundries employed foreign methods of iron production. Nevertheless, their development was limited by the deficiencies of such indigenous technology and by the limited ability of the local business environment to develop technical knowledge.
Key words: technology transfer, textile, hydroelectric generating and transport industries
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