New Brazilian automotive industrial policy: analysis of the consequences for local R%D based on new comer's strategies

Ugo Ibusuki, Roberto C. Bernardes and Flávia L. Consoni

International Journal of Automotive Technology and Management, 2015, vol. 15, issue 1, 63-79

Abstract: This study analyses the Brazilian auto-industry based on Porter's diamond model, looking for the four competitive advantage factors and how the new automotive industrial policy (INOVAR-AUTO), recently launched in 2012, impacts on the local automobile industry. Results show that the Brazilian government's goal is in line with Porter's theoretical model, but it leads us to conclude that Brazil needs to devise, design and implement a focused and integrated industrial policy of research and development (R%D) in the country. The survey, conducted with Asian new comer car and auto-part manufacturers, shows they have quickly adapted to the new policy changes of INOVAR-AUTO without consolidating a real local R%D function. The absence of such a technological specialisation policy increases the chances for Brazil to become a centre of production and commercialisation of vehicles conceived externally and produced with increasingly less local content and local design with higher prices due to less competition.

Keywords: Brazil; automobile industry; automotive industrial policy; Porter's diamond model; INOVAR-AUTO; newcomer strategy; competitive advantage; research and development; automotive R%D; automotive components; automotive manufacturing; local R%D; technological specialisation. (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.inderscience.com/link.php?id=67092 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijatma:v:15:y:2015:i:1:p:63-79

Access Statistics for this article

More articles in International Journal of Automotive Technology and Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().