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The political economy of innovation; an institutional analysis of industrial policy and development in Brazil

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  • Menezes, Jose H. V.

Abstract

This dissertation examines Brazilian industrial policies during the administrations of President Lula (2003-2010) and questions if innovation has truly been the main driver of those instruments. It provides a brief overview on the intersections of politics, economics, innovation and institutions as well as the main choices, incentives and alliances of the Brazilian government, which are illustrated by the Innovation Law, PITCE, PDP and campaign financing of President Lula's 2002 and 2006 candidacies. By adding to the analysis Brazil's exports, its balance of trade and the expenditures of BNDES, this research indicates a disconnect between the intentions and the results of the industrial policy. China and “low-tech” businesses seem to have become the real drivers of the government's agenda; the first for its importance to the Brazilian economy and the latter for its influence with government. Finally, while recognizing some positive results, it presents an alternative model based on a “high-tech” natural resources vision of development which could convert the current challenges into opportunities

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 28849.

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Date of creation: 01 Aug 2010
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Handle: RePEc:pra:mprapa:28849

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Keywords: Brazil; development; institutions; innovation; industrial policy;

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  1. Ha-Joon Chang & Ali Cheema & L. Mises, 2002. "Conditions For Successful Technology Policy In Developing Countries—Learning Rents, State Structures, And Institutions," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(4-5), pages 369-398.
  2. Richard Nelson, 2004. "The challenge of building an effective innovation system for catch-up," Oxford Development Studies, Taylor & Francis Journals, vol. 32(3), pages 365-374.
  3. Mansueto Almeida, 2009. "Desafios da Real Política Industrial Brasileira do Século XXI," Discussion Papers 1452, Instituto de Pesquisa Econômica Aplicada - IPEA.
  4. Cimoli, Mario & Dosi, Giovanni, 1995. "Technological Paradigms, Patterns of Learning and Development: An Introductory Roadmap," Journal of Evolutionary Economics, Springer, vol. 5(3), pages 243-68, September.
  5. Freeman, Chris, 1995. "The 'National System of Innovation' in Historical Perspective," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 5-24, February.
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