Brazilian new patterns of an industrial, technological and foreign trade policy

Abstract

The objective of this paper is to deepen the discussion about the unavoidable way Brazil has to go through in order to construct a modern industrial and technological policy, based on knowledge and technological innovation, which will work as a stimulator of economic development. The different theories about this subject (SCHUMPETER, 1985; PAVITT, 1998; FREEMAN, 1995; KRUGMAN, 1995; COUTINHO & FERRAZ, 1994; MATIAS-PEREIRA & KRUGLIANSKAS, 2005), so as the principles set by the Brazilian Development Ministry (“Diretrizes de Política Industrial, Tecnológica e de Comércio Exterior”), give support in the search for defining a new model of industrial, technological policy and foreign trade for the country. The strategic role of industrial policy seems to be very evident, if it takes on its co-ordination work involving the productive agents, which are responsible for crucial decisions, such as those related to investments and/or innovation, in a context of great incertitude about the consequences of their decisions in the future. Finally, the conclusion arising from this discussion demonstrates that it is crucial for the country to define a modern industrial policy, which could be able to integrate the incentive to innovation as well as to exports, in order to serve as a tool to foster development. The paper also argues that the feasibility to this policy depends on Government’s ability in supplying agents with a favorable context towards adequate regulation, purchasing policy, availability on financing facilities and fiscal incentives.