Abstract
Considering important studies on innovations such as those by Schumpeter (1982), Dosi (1982) and, especially, Mazzucato and Penna (2016), in which they analyzed Brazil's system of innovations, pointing out the macroeconomic regime as a major weakness, this paper’s objective is to analyze and discuss the relationships between selected macroeconomic variables (such as exchange, interest and inflation rates and industrial production) and innovations in Brazil. For this, a vector of error correction (VEC) model is estimated. The results found a negative relationship between innovation and the macroeconomic variables of interest and inflation rates, a positive relationship with industrial production and with innovation itself, and a negative relationship with a short-term exchange rate depreciation immediately after the shock but becoming positive after a few periods.Keywords: Innovation; Economic Policies; Brazilian territory.
Highlights
A major challenge for Brazil is to promote a productive structural change, in order to encourage sectors and products with high technological content, high-income elasticity of domestic and foreign demand and increasing returns to scale, which have positive feedback in the economy, as well as gains in productivity and growth
The objective of this paper is to investigate the relations between technological innovations and macroeconomic variables in order to observe whether they have positive or negative relationships
The results indicate that the variables cambio, i, INPI and Prodind variables are not stationary at 5% of statistical significance, but when tested in the first difference, all were stationary
Summary
A major challenge for Brazil is to promote a productive structural change, in order to encourage sectors and products with high technological content, high-income elasticity of domestic and foreign demand and increasing returns to scale, which have positive feedback in the economy, as well as gains in productivity and growth These factors can favor the formation of a virtuous growth and development cycle. Analyzing innovations, Dosi (1982) argues that economic conditions play an important role and interact with the process of selecting new technologies, with their development, and with their obsolescence and substitution With this base, Mazzucato and Penna (2016) analyze Brazil’s system of innovation and point to the macroeconomic regime as a great weakness. Having favorable macroeconomic conditions for innovation, not a sufficient condition, is a very important one to aid the innovative process
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