The effects of the Brazilian liberalisation of the IT industry on technological capabilities of local firms

Abstract

Abstract The development of technological capabilities was the cornerstone of the Brazilian policies for the information industries in Brazil during the 1980s. Liberalisation promoted since the early 1990s aimed at the fulfillment of the local demand with up‐dated products and services. This article examines the repercussions of these changes on local firms’ strategies towards technology and what have been the consequences on the industrial structure of the sector. The analysis suggests that ‘core competencies’ of local firms have been severely harmed and that foreign firms’ reactions to the policy changes have been less significant than what had been anticipated.