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Innovation for Competitiveness in Brazil: An Overview of Recent Performance and Main Government Policies

  • Newton K. HamatsuEmail author
  • Caio T. Mazzi
Chapter

Abstract

This chapter suggests that low innovation performance of Brazilian firms is one of the main reasons for productivity stagnation and technological regression of the country’s export basket in recent years. Although the last decade was undoubtedly prosperous for Brazil in terms of income and exports growth, that process was strongly determined by the 2000’s commodities boom. When compared to OECD and more dynamic developing countries, Brazil presented inferior performance in innovation inputs and outputs indicators, such as business expenditures in R&D, patents, and introduction of new products in the market. We assert that there are important government initiatives in place to face this issue and support private firms’ innovation activities. However, that effort is still insufficient and threatened by the institutional weakness of the national innovation system. The recent reduction in subsidized credit and grants for business expenditures in R&D exemplifies the problem.

Keywords

Productivity Competitiveness Technological innovation Public policy Research and development 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Brazilian Innovation Agency (Finep)Rio de JaneiroBrazil
  2. 2.Federal University of Rio de Janeiro (UFRJ)Rio de JaneiroBrazil
  3. 3.University of Maastricht (UNU-MERIT)MaastrichtThe Netherlands

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