In this paper we are concerned with discussing some empirical regularities relatad with the effects of the presence of foreign capital on decisions to incur into technological activities taken by the spanish manufacture industry. For this, we use firm level data obtained form the ESEE (Encuesta Sobre Estrategias Empresariales) for the years 1990-1995, from where we can recovar information on the foreign capital participation in the forms and its R&D expenditures (R&D expenditures and technological payments). We fond a positive effect between the higher the foreign capital participation the higher the technology imports. On the other hand, with respect to own R&D only minor foreign capital participation has a positive effect. These could suggest that there is a substitution process between own R&D and technology imports when the foreign capital participation increases.

Keywords: direct foreing investment, R&D, manufactury industry.
JEL classification: C25, F23, L60, O32.