Technological innovation, tax incentives and economic efficiency in the Brazilian scenario

Abstract

The current market imposes on economic agents the use of different strategies to achieve a sure competitive differential or even enough for the regular maintenance of their organizations. From this perspective, innovations emerge as an alternative capable of boosting the revenues of companies and technological development, a fact that, as a consequence, leads to an improvement in the well-being of the population, income distribution, and socioeconomic progress. In this context, it is up to the public authorities to adopt different incentive instruments to create an environment conducive to innovation in the country and in each state, such as tax incentives, which stimulate such activities by eliminating or reducing tax collection. So, considering the peculiarities of the State of Piauí, which presents incipient figures on technological innovation, this paper aims to analyze the effects of public policies of tax incentives for technological innovation in this part of the federation alternatives for improvement given the reality found. It is a bibliographic, documental, descriptive, exploratory research, with an inductive method and qualitative approach, carrying out a case study in which the actual context of Piauí State using the Law and Economics instrumental as an analysis tool. With this methodology, we were able to confirm our hypothesis that there are flaws in the public policies that currently exist and, therefore, the improvement of actions and public projects to support innovation with a focus on the State's specificities, a measure that is needed.