Institutions and industrial policy in Brazil after two decades: have we built the needed institutions?

Suzigan, Wilson; García, Renato; Feitosa, Paulo Henrique Assis

doi:10.1080/10438599.2020.1719629

Cited by 32 publications

(26 citation statements)

References 43 publications

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“…The political context is also crucial since the instruments are embedded in institutions that shape their performance over time. Suzigan, Garcia and Feitosa (2020) demonstrate how the general political context was decisive in determining the results of policies to encourage the generation of knowledge in Brazil (based on R&D indicators). Thus, evaluations of instruments need to consider the intention of policy and recognize the existence of unobserved forces that shape the scope of the policy.…”

Section: Sequence and Context Of Policiesmentioning

confidence: 94%

Policies for knowledge generation in the catch-up process

Feitosa

2021

Rev. Bras. Inov.

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Public intervention to support knowledge generation is recognized as a fundamental strategy that enables the closing the gap between latecomers and forerunners economies. Evaluations and academic studies have been conducted on a wide variety of interventions and rapidly expanded what is known about these policies instruments. However, much of the evidence report conflicting results and can lead to misunderstandings about the potential of these interventions. This article offers a systematic review and a critical discussion of what the literature has to say about the effectiveness of these instruments. It is argued that learning about the effectiveness of interventions requires a capacity to seize and interpret its effects. Specifically, two critical factors are emphasized to understand the potential of these policies, which are their sequence of implementation and the context-dependence of interventions. Since none of these issues has been investigated in-depth, some aspects are discussed to guide future evaluations.

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Section: Sequence and Context Of Policiesmentioning

confidence: 94%

Policies for knowledge generation in the catch-up process

Feitosa

2021

Rev. Bras. Inov.

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“…Notably, MNCs play an important role in the domestic productive structures of emerging countries. They usually occupy a high share in the domestic manufacturing industry, especially in high-tech sectors, and they are responsible for a significant share of domestic R&D expenditures (Suzigan, Garcia, and Assis Feitosa 2020). Emerging economies usually suffer from the lack of domestic capabilities, and MNCs can represent an important source of new knowledge that positively impacts regional development.…”

Section: Methodsmentioning

confidence: 99%

“…In this sense, the positive effects of inward FDI can be even more important for regions in emerging countries, since they can be a means to disseminate new knowledge among local actors. Moreover, a usual characteristic of the productive structure of emerging countries, as is the case of Brazil, is the strong presence of MNCs, since they have a high participation in the domestic manufacturing activity, and they are responsible for an important share of domestic private R&D expenditures (Suzigan, Garcia, and Assis Feitosa 2020).…”

Section: Literature Review: Inward Foreign Direct Investment and Regi...mentioning

confidence: 99%

How Industrial Diversity Shapes the Effects of Foreign Direct Investment Spillovers on Regional Innovation

García

Araújo

Mascarini

et al. 2022

International Regional Science Review

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Inward Foreign Direct Investment (FDI) can generate important knowledge spillovers on local economies, fostering regional innovation, especially in developing countries. In this paper, we analyze how regional industrial structure shapes the effects of inward FDI spillovers on the innovative performance of Brazilian regions. Prior literature has analyzed the effects of FDI spillovers on the productivity of host countries’ firms, while less attention has been given to the corresponding effects on regional innovation. Thus, we use data on the investments of Multinational Companies in Brazilian regions for 2003-2014 and relate these data to the innovative performance measured by patents. Our results show that inward FDI positively influences innovation at the regional level since Brazilian regions that receive inward FDI present stronger innovative performance. In addition, the positive effects of inward FDI on local innovation are reinforced by the diversity of the regional industrial structure. Diversified regions that receive inward FDI are therefore better able to leverage the benefits of inward FDI spillovers.

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“…While some authors highlight the need to promote infant industries and overcome structural constraints for industrialization and economic diversification (e.g., Alex Hamilton [27], Rosenstein-Rodan [28], Rodrik [29], Chang [30], Hartmann [31]), other authors highlight the need for anti-trust measures and ensuring the integrity of the market forces of competition and innovation [32][33][34][35]. In consequence, diverse industrial policy definitions have also been debated in the literature [30,36]. One definition and related school of thought argues that industrial policy should focus on market-oriented policy measures to correct market failures.…”

Section: Initial Theoretical Mappingmentioning

confidence: 99%

Linking Economic Complexity, Diversification, and Industrial Policy with Sustainable Development: A Structured Literature Review

et al. 2021

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Research on economic diversification and complexity has made significant advances in understanding economic development processes, but has only recently explored environmental and social sustainability considerations. In this article we evaluate the current state of this emerging literature and reveal 13 research gaps. A total of 35 different keywords and methods from structured literature reviews and network science helped to identify 374 scientific articles between 1988 and 2020 and revealed a fragmented research landscape around three larger network communities: (1) industrial policies, climate change, and green growth; (2) economic complexity and its association with inequality and environmental sustainability; and (3) economic diversification, including studies on livelihood diversification in poor areas. Economic complexity research applies new empirical methods and considers both social and environmental sustainability, but seldom scrutinizes theory and policy. Industrial policy research focuses on green growth policies but tends to omit social sustainability issues and advanced empirical methods. Research on economic diversification in poor regions provides insights on the livelihood diversification of farmers, but is disconnected from the economic complexity and industrial policy research. This review helps to summarize the main contributions and shows pathways for potential mutual learning between these communities for the sake of sustainable development.

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Institutions and industrial policy in Brazil after two decades: have we built the needed institutions?

Cited by 32 publications

References 43 publications

Policies for knowledge generation in the catch-up process

Policies for knowledge generation in the catch-up process

How Industrial Diversity Shapes the Effects of Foreign Direct Investment Spillovers on Regional Innovation

Linking Economic Complexity, Diversification, and Industrial Policy with Sustainable Development: A Structured Literature Review

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