Eduardo Pontual Ribeiro, Camila Pires-Alves, and Luis Carlos D. Prado
This chapter presents and analyzes Brazil’s competition policy on merger control and the abuse of market power. Its role as an important Brazilian public policy derives from a combination of three factors: historical evolution, legal framework, and institution building. The chapter provides an analysis of the evolution of its main agency, the Administrative Council for Economic Defense (Conselho Administrativo de Defesa Econômica, CADE), while focusing on the control of cartels and mergers. The chapter further discusses institution building over the years surrounding the practice of competition law. Current practice and challenges in this are also discussed in the chapter.
Assessing State-Level Science and Technology Policies: North Carolina’s Experience with SBIR State Matching Grants
John Hardin, Lukas Brun, and Lauren Lanahan
State government R&D expenditures play a critical role in supporting innovation in the United States. This chapter discusses the growing role of US state governments in supporting R&D activity, paying particular attention to a small business innovation program in North Carolina designed to complement the federal Small Business Innovation Research (SBIR) program. The chapter first provides an overview of the literature on state science and technology policies that encourage innovation, competitiveness, and economic development at the state level. It then reviews complementary federal and state government policies aiming to improve the success rate of the SBIR program, with particular attention to the One North Carolina Small Business Program. It discusses the objectives of the state policy and provides results of a program assessment, which indicate that the state matching program meets the objectives of the policy and provides positive spillover effects to North Carolina’s economy.
The literature on the university’s role in regional economic development and technology commercialization has almost entirely focused on commercialization as managed through technology-licensing offices. Drawing upon case studies from a forthcoming book, it is shown that technology transfer through regional engagement by University of California campuses is far more complex and bidirectional than the current academic literature indicates. We also show that there are distinct disciplinary differences in the technology transfer process. For this reason, we suggest that technology transfer offices have little to do with most of the knowledge transferred by universities and, in certain cases, may even frustrate the transfer process. The chapter suggests better understanding of the true nature of technology transfer would allow both policymakers and university administrators to develop more effective policies.
There is an extensive literature linking clusters to innovation, through the mechanism of knowledge spillovers. This chapter argues that, in order for such innovation dynamics and knowledge spillovers to evolve, there must be a “cluster commons,” where individuals, firms, and organizations can exchange information, interact, and initiate collaboration. A well functioning commons is not an automatic or natural phenomenon. Instead, clusters are typically characterized by considerable gaps between firms and between firms and related organizations, both within the cluster and to outside markets and clusters. Bridging the seven cluster gaps through a commons involves construction by both invisible and visible hands. The chapter sets out to develop the concept of the cluster commons and shows how it can be constructed and kept, in order to avoid the tragedy of the commons.
Corruption Scandals, the Evolution of Anti-Corruption Institutions, and Their Impact on Brazil’s Economy
Mariana Mota Prado and Lindsey Carson
This chapter considers corruption in the Brazilian context and the impact this may have had on economic performance. It is first suggested that a corruption scandal can create a window of opportunity for reforms, such that a government’s action or inaction in the aftermath of a scandal may signify its commitment to institutional change. The chapter assesses the impacts of past scandals and responsive institutional reforms on perceptions of corruption. Finally, the chapter considers how foreign and domestic investors may react to government reforms, as well as perception-based indicators of corruption. It is argued that some corruption scandals have had significant impact on institutional reforms and corruption indicators in Brazil.
Robert M. Buckley and Alex F. Schwartz
This article provides both a policy primer and an analytical guide to the evolving subnational role in US housing. It traces developments that began in the 1970s. The article begins with an overview of housing's role in the economy (what was seen as an unbroken success came apart with the mortgage crisis that began in 2007). It then moves along to trends in housing tenure and an analysis of why concern for the affordability problem is increasing due largely to the interplay between the functioning of the housing market and the nation's widening wealth and income inequality.
Kayo Hirai, Hiro Motoki, and Hideki Yamawaki
Japanese corporations are in transition from their successful organizational and business model in the high-growth era of the 1960s through the 1980s, to new models to adapt to the emerging business environment of the last 20 years. The adjustment process has been slow, but has provided new opportunities for the new generation of entrepreneurs who are willing to engage in business experimentation in new products, services, and business models. Although it is still premature to predict, this chapter finds that these innovative firms that take sustainability at the heart of their business concepts and that have a clear customer value propositions are gaining traction in the marketplace and creating new sustainable values.
Edmund Amann, Werner Baer, Thomas Trebat, and Juan Villa Lora
This chapter analyzes the issues surrounding Brazil’s long-standing underinvestment in critical infrastructure. Following a survey of sectoral issues—in transportation, water, and energy—the chapter addresses the challenges that will need to be overcome if infrastructural bottlenecks are to be overcome successfully. The challenges center on regulatory as much as financial constraints. Particular areas of concern in the latter regard center on uncertainties surrounding the regulatory process, the existence of overlapping regulators and poor regulatory design. However, fiscal constraints, high financing costs and lack of technical capacity are also relevant features of the environment in which Brazilian infrastructure investment has to take place.
César Calderón and Luis Servén
This chapter revisits the theme of infrastructure development in Latin America from a macroeconomic standpoint, first documenting the trends in Latin America's infrastructure development. Overall, there is evidence that an ‘infrastructure gap’ goes together with industrial and developing regions which opened up in the 1980s and 1990s. Second, drawing from recent research, the chapter provides an empirical assessment of the contribution of infrastructure development to growth across Latin America, as well a quantitative illustration of the growth cost of the region's infrastructure gap. Third, it examines the changing roles of the public and private sectors in Latin America's infrastructure, presenting updated information on the trends in the financing of infrastructure investment and analysing how they have been shaped by macroeconomic policy constraints. Fourth, the chapter summarizes the lights and shadows from two decades of private-sector participation in Latin America's infrastructure development.
Ellen Dannin and Lee Cokorinos
This article examines an alternative means of obtaining infrastructure funding, which consists of various techniques that involve private ownership and the operation of public-use facilities. It focuses on highway projects, which constitute a major area for privatization proposals and can involve large-scale projects. After recounting many of the technical and contractual issues that are entailed in the private provision of infrastructure and reviewing the results of large deals done thus far, the article notes that privatization has been around in the United States for a short time, but long enough to raise some important policy issues. Infrastructure privatization has been seen as a novel innovation in financing, building, operating, and maintaining infrastructure. However, the revenue-guarantee measures used to protect investors can be contrary to the public interest.
Jacob Rosenberg and Avi Weiss
The Jubilee, as laid out in the Bible, is generally viewed as a time for celebration—a time during which horns are blown, families reunited, and heirlooms reclaimed. This article focuses on the need for reconsideration of the goals of jubilee. It is a time of freedom, with the release of slaves and the resulting return of their civil liberties, and of social justice, with land sold during the previous fifty years returning to its original owners. Thus, the Jubilee seems to be partially a sociological precept, with its main goal seemingly to achieve a certain degree of equality among people. However, a careful study of the precise decrees raises a number of questions that are difficult to understand when this view of the Jubilee is taken. This article explains the two main goals of Jubilee Laws, the role of slavery, and the clean slate proclamations.
Armando Castelar Pinheiro
We can divide the history of Brazilian state-owned enterprise (SOEs) into two periods. In the first (1930s to late 1970s), SOEs were a policy instrument in state-led industrialization. They produced manufactured goods, supplied cheap inputs to private manufacturing firms, and financed those companies with long-term, subsidized loans. In the second period (1980s to the early 2000s), Brazil privatized several of its main SOEs. Privatization was mainly seen as an answer to macroeconomic problems and did not result from a national ideological about-face; indeed, most Brazilians continued to trust the state to lead development. Thus, the fall of SOEs was relative. Large companies such as Petrobrás and Eletrobrás continue in state hands. Moreover, the Lula and Rousseff administrations created several SOEs and strengthened others. And the state developed new channels to influence private investment, through a network of equity participations in private companies, held by BNDES and SOE pension funds.
David B. Audretsch
This chapter provides a systematic framework for understanding what shapes the economic performance of cities, regions, and states, or places, and how that performance can be enhanced. In particular, this framework is based on four pillars—factors and resources, spatial structure and organization, the human dimension, and policy. While policymakers with a mandate to improve the economic performance of their place have tended to gravitate toward singular policy solutions and approaches, such as “smoke stack chasing,” clusters, or the creative class, this framework instead suggests a broad range of diverse policy targets and instruments. Taken together, the framework for generating local competitiveness constitutes the strategic management of place.
Since its inception after World War II, the practice of local and regional economic development has been largely divorced from national economic development policies. This is in part because the former was focused on addressing regional problems in what was assumed to be a healthy national economy. But as the US economy has suffered from serious structural decline, this relationship can no longer be taken as a given. As such, it is time to more effectively link national and local economic development efforts through innovation if both are to be successful. In particular, we need to move the practice of state and local economic development towards positive-sum activities that help local economies and economic growth but also national competitiveness. The force of globalization have had a big impact on manufacturing that has resulted in rethinking both urban and regional planning.
Jonathan L. Gifford
No area of state and local government finance has a longer lineage of public spending and intergovernmental relationships (or is more visible to citizens on a daily basis) than the transportation sector. This article provides a tour through the labyrinth of financing arrangements that are now used to meet the nation's surface, air, and water transportation needs. Once the major claimant on state and local spending, transportation's role has eroded in the face of the demands of education and the spiraling needs of health-related programs. Likewise, the shifting public mood and the new age of austerity have brought transportation funding to a crossroads. With prospects for added federal transportation funding bleak because of the long-term pressures on the federal budget, any future initiatives will be seen in the state and local sector.