Forms of learning and product innovation degrees in Brazil: an exploratory analysis of sectoral learning standards

Abstract:

This paper aims to broaden the understanding of innovation dynamics in Brazilian firms. For doing so, we constructed indicators of 'types of learning' and 'degrees of innovation' and their relationships were econometrically tested. Significant sectoral differences were found. It was also found that: (i) 'higher degree' innovations arise from forms of learning that combine both codified knowledge (such as knowledge arising from advanced S&T sources) and tacit knowledge (resulting from customer interactions, for example); (ii) 'lesser degree' innovations derive almost exclusively from forms of learning that consider only tacit knowledge; and (iii) customers are always important sources for innovation processes. From the latter finding, we hypothesized that the limited dynamic innovation found in Brazilian firms can be explained by a type of 'lock-in effect' related to customers' demands for quality. The stimulus to exports is the main policy recommendation derived from this analysis, by admitting that more sophisticated customers may induce the most promising technological trajectories.

Keywords:
product innovation; forms of learning; learning by exporting