Brazilian Air Force acquisition policies: observing absorptive capacity and contingent factors in aeronautical beneficiary companies

Abstract

The offset agreement (OA) of the Brazilian Air Force (FAB) is a demand-side policy aiming to improve innovative capacities. However, it may be constrained by companies’ absorptive capacities, relationship features, and sectoral specificities. This study examines these issues in a small but representative sample of domestic beneficiary firms from the FAB’s OA. The model in the study by Zahra and George, along with contingent factors such as power relationship and social integration mechanisms, inspired the design of the research tools. The results point to similar and high firms’ absorptive capacities, regardless of the origins of capital. However, results show distinct benefit perceptions given by contingent factors, companies’ strategies, and sectoral specificities, which may denote distinct possibilities on cumulativeness and appropriability from technology transfer. We expect that these findings may improve the planning, monitoring, evaluation, and adjustments of this demand-side policy, attracting attention to new studies on the theme.