Brazil: Public procurement and innovation in Brazil: A changing course of public procurement policy?

Abstract

Despite recent advances, Brazil still faces serious social and economic problems as an emerging economy. Public procurement can be considered an important instrument in overcoming some of these adversities, particularly in promoting domestic innovative capacities. We tackle some of the main aspects of the connection between public procurement and innovation in Brazil, a relatively recent issue in the country’s political and economic arenas. We argue that the Brazilian government does not have, so far, a procurement policy that can successfully integrate its innovation policy. Its procurement system focuses primarily on fighting corruption, neglecting the quality and the more broad results of purchases. Against this background, two types of policies stand out: sector-specific procurement policies addressing innovation—still rather fresh and few in numbers— and funding policies directed at specific technological areas, which are in turn not integrated into the purchasing power of government. Since these policies have not yet displayed their full potential, we conclude by pointing out the main obstacles on their way. The development of a more consistent association between public procurement and innovation policy in Brazil thus depends on the coordination between different public policies already in existence, the improvement of procurement departments and the better synergy between public and private actors.