Abstract

The objective of this paper is to examine the system of intellectual property rights (IPR), in Brazil, including patent, copyright, trademark, and trade secret regimes, and its impact on industrial technology development. It is to be argued that the incentive structure for the acquisition of technological capabilities is fundamentally related to the overall economic environment and the prevailing competition policy regime. Technology policies and institutions play a complementary role that assumes increasing importance as markets become more competitive. The contribution of the intellectual property rights regime for explaining the technological performance of Brazilian industrial firms thus should not be overstated. The impact of IPR on industrial technology development and the connection between the property rights regime and direct foreign investment and arms-length technology transactions is examined. Steps to close the gaps in IPR protection are suggested, while stressing the importance of changes in other policy areas to improve the structure of incentives and strengthen the technological capabilities of Brazilian industry. The paper concludes by suggesting directions for research in assessing the relationship between IPR protection and technology development.

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