The research reported in this work is related to technological innovation and, more specifically, to the development of products and their management in small and medium enterprises (SMEs) of the metal-mechanical sector in the Greater São Paulo area and in Sorocaba and surroundings. The work consisted of an exploratory and descriptive survey conducted in 2004, in a qualitative approach, to gain an overview of the processes of product development and technological innovation in SMEs, on the basis of the data collected from a sample of 32 companies. The information produced from the survey may subsidize organizations of support to small and medium enterprises, and provide an increase of competitiveness in the geographic region considered, in addition to promoting the integration of researchers in the mechanical departments of EPUSP (Polytechnic School of the University of São Paulo) and FATEC – CEETEPS (Paula Souza Center for Technological Education).