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Industrial policy and development

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  • Wilson Suzigan
  • João Furtado

Abstract

This paper aims at contributing to the debate on industrial policy and economic development in Brazil. At first, theoretical approaches that support industrial policy- making are discussed, with emphasis on the neoschumpeterian/evolutionary approach, which focuses on innovation as prime mover of economic development and on the co-evolution of technologies, institutions, and industries and firms structures. Next, such an approach is applied to explain some successful experiences of industrial policy-making and economic development in Brazil up to the end of the 1970s, and the failures to implement such a policy from the 1980s onwards. Finally, the present government industrial policy is evaluated, arguing that although it has some positive aspects like the focus on innovation, clearly defined targets and a new institutional organization, it fails as an economic development policy because of weaknesses such as incompatibility with macroeconomic policy, inconsistencies of policy instruments, deficiencies in infrastructure and in the science, technology and innovation system, and lack of coordination and political drive. JEL Classification: L52; L60.

Suggested Citation

  • Wilson Suzigan & João Furtado, 2006. "Industrial policy and development," Brazilian Journal of Political Economy, Center of Political Economy, vol. 26(2), pages 163-185.
    • Handle: RePEc:ekm:repojs:v:26:y:2006:i:2:p:163-185:id:595
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    References listed on IDEAS

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    1. Rodrik, Dani, 2004. "Industrial Policy for the Twenty-First Century," CEPR Discussion Papers 4767, C.E.P.R. Discussion Papers.
    2. Nelson, Richard R & Pack, Howard, 1999. "The Asian Miracle and Modern Growth Theory," Economic Journal, Royal Economic Society, vol. 109(457), pages 416-436, July.
    3. Giovanni Dosi, 2000. "Institutions and Markets in a Dynamic World," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 20, pages 593-620, Edward Elgar Publishing.
    4. W. M. Corden, 1980. "Relationships between Macro‐economic and Industrial Policies," The World Economy, Wiley Blackwell, vol. 3(2), pages 167-184, September.
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    Cited by:

    1. Peres, Wilson, 2011. "Industrial Policies in Latin America," WIDER Working Paper Series 048, World Institute for Development Economic Research (UNU-WIDER).
    2. Slavo Radosevic, 2009. "Policies for Promoting Technological Catch Up: Towards a Post-Washington Approach," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 1(1), pages 23-52, June.
    3. Guennif, Samira & Ramani, Shyama V., 2012. "Explaining divergence in catching-up in pharma between India and Brazil using the NSI framework," Research Policy, Elsevier, vol. 41(2), pages 430-441.
    4. Shyama V. Ramani & Samira Guennif, 2012. "Catching up in the Pharmaceutical Sector: Lessons from Case Studies of India and Brazil," Chapters, in: Franco Malerba & Richard R. Nelson (ed.), Economic Development as a Learning Process, chapter 5, Edward Elgar Publishing.
    5. Slavo Radosevic & Despina Kanellou & George Tsekouras, 2023. "The experimentation–accountability trade-off in innovation and industrial policy: are learning networks the solution?," Science and Public Policy, Oxford University Press, vol. 50(4), pages 655-669.
    6. Stehnken, Thomas, 2010. "Innovationspolitik in Brasilien - Kontinuitäten und neue Entwicklungen während der Regierung Lula da Silva," Discussion Papers "Innovation Systems and Policy Analysis" 27, Fraunhofer Institute for Systems and Innovation Research (ISI).
    7. Adami, Vivian Sebben & Antunes Júnior, José Antônio Valle & Sellitto, Miguel Afonso, 2017. "Regional industrial policy in the wind energy sector: The case of the State of Rio Grande do Sul, Brazil," Energy Policy, Elsevier, vol. 111(C), pages 18-27.
    8. Ramani, Shyama V. & Urias, Eduardo, 2018. "When access to drugs meets catch-up: Insights from the use of CL threats to improve access to ARV drugs in Brazil," Research Policy, Elsevier, vol. 47(8), pages 1538-1552.

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    More about this item

    Keywords

    industry; industrial policy; innovation; technology; development;
    All these keywords.

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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