The New Economy and the Challenges Facing Emerging Countries: The Case of Brazil
Data on knowledge capital and innovation, in particular, show that the country is ranked in a lower position not only in relation to the developed countries but also to its peers. The country’s innovation performance shows mediocre results as the main innovation model is based on the use of imported machinery and equipment.
The paper’s argument concerning the country’s poor performance regarding the setting up innovative companies results from a specific developmental path characterized by the lack of an embedded institutional framework capable of supporting the requirements of the new context. The argument follows that this incapability in great part is due to the country’s model of industrialization based on the import-substitution, oriented to the home market and favored by strong protectionism.
The conclusion is that the country needs a series of reforms that will not be easy to implement.