An International Comparative Analysis
New Horizons in the Economics of Innovation series
Chapter 8: The Brazilian Experience
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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