Will Rota 2030 deliver sustainable innovation? Comparing the ends and means of Brazilian and German auto industry innovation policies

Abstract

Purpose Due to dramatic transformation of the auto industry, governments are implementing innovation policies to ensure the domain of sustainable technologies. According to the literature, developing countries that depend on multinational subsidiaries must invest in complementary innovation to be part of their research and development (R&D) headquarters' long-term plans. This study analyses the Brazilian auto industry innovation policy (Rota 2030) to evaluate if it targets complementarity with the German's one (NPE). It also compares the institutional arrangements of the former against the latter to check for governance gaps.Design/methodology/approachIt applies a case-oriented comparative method (Ragin, 2014) for the analysis of qualitative evidence on secondary data. It investigates evidence of complementarity between Rota 2030 and national platform for electric mobility (NPE) objectives and checks for governance gaps in Rota 2030 using NPE as a reference.FindingsThe results confirmed a loose fitting between the innovation policies mainly for a lack of determinism of Rota 2030 objectives. Governance gaps were also found on Rota 2030 policy formulation and operationalization.Practical implicationsIt contributes for the improvement of Rota 2030, and its analytical frame may be used for the formulation or adjustment of other developing countries' innovation policies.Originality/valueIt contributes with innovation system and policy field development with a theoretical extension coming from the New Institutional Economics (NIE) (Menard, 2018). By examining the performance of “institutional arrangements” during the process of formulation and operationalization of innovation policies, it shows the importance of coordination for their effectiveness.