The low complexity trap in Minas Gerais: the challenge of economic sofistication in a commodity exporter state

Abstract

Minas Gerais has dealt for decades with the challenge of economic sophistication. In an attempt to build paths for its economy’s transformation, the Government of Minas Gerais launched the Dataviva platform, allowing economic complexity’s approach to be used in the context of public development policies. This article aims to contribute to this debate by analyzing the economic complexity of the Brazilian states from 2002 to 2014, focusing on Minas Gerais. The research reveals that Minas’ economy is stuck in a “low complexity trap”, which requires a close collaboration between the public and private sectors for the discovery and investment in activities that contribute to economic sophistication.

Key-words:
Economic Complexity; Innovation; Public Policies; Commodities; Dataviva