Government political-relational capacities and industrial policy profile: Brazil’s experience at the beginning of the 21st Century

Abstract

Abstract Formulating industrial policies is a complex process marked by advances and setbacks, reflecting the political and institutional aspects. In the present article, we aim to better understand the role of government relational capacities in delineating the industrial policy profile. Based on a qualitative research on Brazilian industrial policies between 2003 and 2014, this study highlights how the interlocution and coordination between public and private actors are crucial in shaping the industrial policy profile. Our analysis shows that between 2003 and 2007, relational capacities were built, reflected in a focused industrial policy, predominantly applying regulatory instruments oriented to promote innovation. From 2007 to 2014, there was a progressive loss in relational capacities, the industrial policy lost strategic focus, and increased the use of tax relief instruments in its management.