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    • Ara jo et al highlights that the progressive targeting

    2018-10-30

    Araújo et al. (1992) highlights that the progressive targeting of the Brazilian MT exports in the late 1980s towards developed countries such as USA, Germany, Italy and Canada shows that the industry made ​​a significant competitive effort. The growth of the intra-industry trade, the diversification of exports lists and the increase in the exports price reflected “an increase in the technological content of the exported product, and the strengthening of the foreign purchase l-ascorbic acid power.” (p. 93). At the end of the decade the MT production was consolidated by a more advanced technological level if compared with that of countries such as India, Mexico and Argentina (Cruz, 1993, p. 04). Specialization among MT sector producers in the early 1990s was practically the same as that from the mid-1970s: foreign companies produced highly sophisticated products, such as special MT (e.g., presses). The machining centers and the serial medium sophistication MT/CNC sector competed with national and foreign companies, whereas small and medium-sized national companies offered less sophisticated products to less dynamic sectors. The interdependence between macro and microeconomic forces, which was expressed in the co-evolution of the institutional structure of the industry and technology changes, guaranteed a high rate of economic growth since the ISI and had set up sectorial incentive regimes characterized by high productive investment opportunities. However, it encouraged vicious sectorial technological regimes as well as informal and passive technological learning efforts that, when active and formal, were restricted to few sectors and companies. Given the acceleration in the industrialization process, the use of foreign licensing and the importation of capital goods enabled enhancing the productive and manufacturing capabilities by means of technological efforts and informal and passive learning processes—the most innovative processes to replace imports. However, these processes were not sufficient for the accumulation of capabilities which were fundamental to the widespread development of innovation products (and process) to the international market. Moreover, even the ISI leading companies sought to be major leaders in order to meet the domestic market demands. The accumulation of innovative capabilities and the technical progress materialization in new products and processes (services, etc.) to the international market resulted from R&D learning processes and efforts to adapt foreign technology based on intense and stable producer-user interactions and cooperation processes set with institutions such as universities that produce and reproduce theoretical and practical knowledge. According to Ferraz (1987), these technological efforts were restricted to a few sectors, even when they were intentional. The efforts were restricted to a few companies within these sectors, thus they generated a framework of great technological and competitive heterogeneity in the Brazilian industry.
    Machine-tools sector restructuring from 1990 to 2000: specialization and innovative dynamics The trade openness experienced by the country since late 1980s found an accommodated industry without stimuli for product innovation and differentiation. Moreover, the paradox was an industry with strong presence of foreign capital, but extremely closed, with little international insertion, and which, by facing the crisis, reversed its expansion strategies in Brazil. The structural reforms of the 1990s consisted of trade and financial openness to increase the economy external integration. The largest real and potential contestability in the Brazilian economy and industry lowered the level and dispersion of protective tariffs, changed the patent legislation, property rights and sought for foreign direct investments. According to the new model, competition would be the central mechanism to stimulate the incorporation of new technologies able to sustain a virtuous circle of increasing productivity and real wages (Carneiro, 2002).