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New Brazilian automotive industrial policy: analysis of the consequences for local R%D based on new comer's strategies

Author

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  • Ugo Ibusuki
  • Roberto C. Bernardes
  • Flávia L. Consoni

Abstract

This study analyses the Brazilian auto-industry based on Porter's diamond model, looking for the four competitive advantage factors and how the new automotive industrial policy (INOVAR-AUTO), recently launched in 2012, impacts on the local automobile industry. Results show that the Brazilian government's goal is in line with Porter's theoretical model, but it leads us to conclude that Brazil needs to devise, design and implement a focused and integrated industrial policy of research and development (R%D) in the country. The survey, conducted with Asian new comer car and auto-part manufacturers, shows they have quickly adapted to the new policy changes of INOVAR-AUTO without consolidating a real local R%D function. The absence of such a technological specialisation policy increases the chances for Brazil to become a centre of production and commercialisation of vehicles conceived externally and produced with increasingly less local content and local design with higher prices due to less competition.

Suggested Citation

  • Ugo Ibusuki & Roberto C. Bernardes & Flávia L. Consoni, 2015. "New Brazilian automotive industrial policy: analysis of the consequences for local R%D based on new comer's strategies," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 15(1), pages 63-79.
    • Handle: RePEc:ids:ijatma:v:15:y:2015:i:1:p:63-79
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    Cited by:

    1. Guimón, José & Chaminade, Cristina & Maggi, Claudio & Salazar-Elena, Juan Carlos, 2018. "Policies to Attract R&D-related FDI in Small Emerging Countries: Aligning Incentives With Local Linkages and Absorptive Capacities in Chile," Journal of International Management, Elsevier, vol. 24(2), pages 165-178.

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