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Industrial policy, innovation capability accumulation and discontinuities

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Figueiredo, Paulo N De

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Research Projects

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"This paper examines a “path-creating” innovation capability accumulation trajectory in latecomer natural resource-processing industries across discontinuous policy regimes. Drawing on multiple-case and first-hand evidence from 13 forestry, pulp and paper firms in Brazil (1950- 2007) it was found that: (1) Firms’ innovation capability accumulation paths involved a qualitative departure from the established technological trajectory at the early stage of their capability development; (2) As firms moved along the new technological segment, over discontinuous policy regimes, there was a high degree of variability across and within firms in terms of “depths” and speeds of capability accumulation; (3) Firms that reached advanced and world-leading capability levels exhibited a combination between pro-active innovation strategies, entrepreneurial management and synergetic, and relatively informal, relationships with industrial policy-making, other than protectionism; (4) Such combination proved essential for such innovators to thrive along the new technological segment and cross discontinuous industrial policy regimes with progressively higher innovative performance. By adopting an approach that captures types, stages and dynamics of firms’ innovation capability building, the paper contributes to expanding our understanding of technological “catch-up”. It also sheds light on the role of firms’ innovation strategies and government policy in achieving international leadership in natural resource-processing industries from latecomer natural resource-endowed contexts."

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Política industrial, Innovaciones tecnológicas, Investigación científica

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