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Industrial upgrade, economic catch-up and industrial policy in Brazil: general trends and the specific case of the mining industry [Upgrade industrial, catch-up econômico e política industrial no Brasil: tendências gerais e o caso específico da mineração]

Author

Listed:
  • Renato Garcia

    (UNICAMP)

  • Ulisses Pereira dos Santos

    (CEDEPLAR, UFMG)

  • Wilson Suzigan

    (UNICAMP)

Abstract

The aim of this paper is to analyze the role of industrial policy in promoting technological upgrading in Brazil. To do that, we focus on the main characteristics of the Brazilian national innovation system and the role of its institutions. We examine whether industrial policy implemented between 2003 and 2014 was able to promote changes in agents’ conventions towards more vigorous strategies linked to technological upgrading and catch-up. In addition, we analyze the Brazilian mining industry, a sector in which Brazil has developed relevant competitive advantages in international markets, and in which domestic agents have built important operational capabilities. Main results show the huge difficulties faced by industrial policy efforts in establishing mechanisms to drive technological catch-up, based on the unsuccessful experiences of policies in the years 2002 to 2014. The specific experience of the Brazilian mining industry confirms these general findings, since domestic mining companies were not able to create new technological capabilities, even during the commodity price boom period.

Suggested Citation

  • Renato Garcia & Ulisses Pereira dos Santos & Wilson Suzigan, 2020. "Industrial upgrade, economic catch-up and industrial policy in Brazil: general trends and the specific case of the mining industry [Upgrade industrial, catch-up econômico e política industrial no Bras," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 30(spe), pages 1089-1114, December.
    • Handle: RePEc:nov:artigo:v:30:y:2020:i:spe:p:1089-1114
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    References listed on IDEAS

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    5. Suzigan, Wilson & Furtado, João, 2010. "Política industrial e desenvolvimento," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), May.
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    8. Wilson Suzigan & Renato Garcia & Paulo Henrique Assis Feitosa, 2020. "Institutions and industrial policy in Brazil after two decades: have we built the needed institutions?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 29(7), pages 799-813, October.
    9. David Dequech, 2017. "The Concept of Development Conventions: Some Suggestions for a Research Agenda," Journal of Economic Issues, Taylor & Francis Journals, vol. 51(2), pages 285-296, April.
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    11. Cimoli, Mario & Dosi, Giovanni & Stiglitz, Joseph E. (ed.), 2009. "Industrial Policy and Development: The Political Economy of Capabilities Accumulation," OUP Catalogue, Oxford University Press, number 9780199235278, Decembrie.
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    Cited by:

    1. Yao Wang & Qiang Yang & Xuenan Wu & Ruichen Wang & Tilei Gao & Yuntong Liu, 2023. "A Study of Trends in Low-Energy Development Patterns in China: A Data-Driven Approach," Sustainability, MDPI, vol. 15(13), pages 1-18, June.
    2. Glenda Kruss & Keun Lee & KJ Joseph & Eduardo da Motta e Albuquerque, 2020. "Breaking middle income traps in a post Covid-19 world: an introduction to the Special Issue [Romper a armadilha da renda média no mundo pós-Covid-19: uma introdução ao Número Especial]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 30(spe), pages 1063-1088, December.
    3. Fayuan Wang & Rong Wang & Zhili He, 2022. "Exploring the Impact of “Double Cycle” and Industrial Upgrading on Sustainable High-Quality Economic Development: Application of Spatial and Mediation Models," Sustainability, MDPI, vol. 14(4), pages 1-17, February.

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    More about this item

    Keywords

    Industrial Policy; institutions; knowledge and innovation; mining;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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