Learning from Productive Development Agencies in Brazil: Policies for Technological Innovation

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Saes, Maria Sylvia;
Schneider, Paula Sarita Bigio;
Francischini, Andresa Silva Neto;
Santana, Synthia Kariny Silva de;
Morgulis, Maria Clara de Azevedo
Dec 2016
This paper presents and comparatively analyzes three case studies of productive development agencies (PDAs) in Brazil: Embrapa, Finep, and ABC Foundation. Following a discussion of the main hypotheses and the methodology employed, the paper describes each case, the related counterfactual and an analysis of each PDA's capabilities. A subsequent section presents a comparative analysis of the PDAs, studying: i) the use of hybrid forms to assemble complementary capabilities: short-run effects on technological policy; ii) the effect of strategic alliances on building capabilities and dynamic effects; and iii) how industry structure and innovation should affect PDAs' strategies. Finally, the paper presents conclusions, summarizing results, methodological shortcomings and policy implications.