firm, manufacturing new products, which tends to take out licences abroad. Also firms which have been In the branch of Industry for a long time and had a long period In which to adapt and assimilate the processes In use In their own sector do lt. This lack of correlation between age of the Industry and licensing cast doubts about one of the main points of the complementary approach: the Internalization of learning and the subsequent elimination of licences ties. The fact that they keep up a licensing contract probably tel Is us nothing about the lev~l or type of local capability because we may be faced with a contract made to open a channel for liquid assets abroad. 111. TECHNOLOGICAL BEHAVIOUR OF LOCAL FIRMS The two former sections show that the different propensity of the firms to take up licences expressed, In terms of Its capital origin, Is associated with long term contractual relationship. Table 2 shows the reasons used by national firms to justify Importing technological assets. It shows that the substitutive cnaracter of technical Imports Is more prevalent In cases where a 12 local entrepreneur may be faced with technical risks (associated with his research costs), If he aevelops a process In order to undertake local production. It also exists In a situation of constant technological changes which are difficult to generate I nterna II y at the same rhythm. In other words. the! r deve I opment would place the firm at a competitive disadvantage and the need for a permanent and stable posltlan In the market could encourage the local firm to take out foreign I lcences. Certainly It Is possible to ~tate that In these cases It Is not technology transfer p_~ which limits or dlsco~ra·ges local creativity but 
**Analysis**
The text appears to be discussing the behavior of local firms in terms of their willingness to take out licenses for technological assets, and how this behavior is influenced by factors such as the age of the industry and the level of technological change. The text also touches on the idea that the possession of foreign licenses does not necessarily imply a lack of local capability. Given the focus on the behavior of firms and the transfer of technological assets, it seems likely that the text is related to the field of economics and industry.

**Category**
Industry, International trade, Science and technology