Government, Innovation and Technology Policy

Government, Innovation and Technology Policy

An International Comparative Analysis

New Horizons in the Economics of Innovation series

Sunil Mani

This unique book offers a comprehensive analysis of the changing role of government with respect to domestic technology development in eight countries in both the developed and the developing world. The author distinguishes between those countries which can be classed as creators of new technologies (Japan, Korea and Israel) and those which possess the potential to create new technologies (Singapore, Malaysia, India, South Africa and Brazil).

Chapter 8: The Brazilian Experience

Sunil Mani

Subjects: economics and finance, economics of innovation, innovation and technology, economics of innovation, innovation policy


The chapter is structured into three main sections. In the first one, the Brazilian enterprise sector is mapped out. This is followed by an analysis of the outcomes of innovation policy in terms of some standard indicators. The third section outlines four different modes through which the Brazilian state has intervened to hasten the process of local technology generation. A summary of the main findings concludes the chapter. THE BRAZILIAN ENTERPRISE SECTOR Brazil is the largest and technologically speaking most developed country in Latin America. It has been very successful in certain areas of high technology such as aeronautics and the only one from the developing world to be so. With a per capita income of US$6,840 (PPP 1999), it is closer to Malaysia and South Africa than to India. Despite the phenomenal growth of its service sector, manufacturing still accounts for about a quarter of its gross value added. However, the manufacturing sector has been performing rather badly during the 1990s, which corresponds to the period of economic liberalisation and opening up of the Brazilian economy. In fact, as Figure 8.1 shows, the rate of growth of manufacturing value added decelerated from about 1.89 per cent per annum during the 1980s to 0.21 per cent per annum during the 1990s. Brazil has also opened up its economy much more compared to India during the 1990s. For instance, the mean weighted tariff for manufactured products has been significantly reduced from 37.9 per cent in 1989 to...

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