It is reasonable to suppose that TNCs affiliates operating in the Brazilian pulp and paper sector search for exploring the advantages of producing lower costs pulp to the domestic and international paper markets, but it is also expected that they make innovation efforts to absorb and to extend the short-fiber pulp technological knowledge based on eucalyptus. The participation of four important TNCs in two Research Consortiums on Eucalyptus in Brazil at the present time corroborates to this expectation. This implies a qualification on the first hypothesis (): the technology spillover effects in the Brazilian pulp and paper industry could be.
