Chapter 14: Innovation Capabilities in Brazilian Manufacturing Firms

This chapter aimed to analyze the innovation capabilities of Brazilian manufacturing firms. We employ a model that includes both technological and nontechnological capabilities: development, operations, management, and transaction. We examine and compare these four capabilities across more than 1,300 Brazilian manufacturing firms at two points in time: 2014 and 2021. The analysis is guided by the following questions: What has been the configuration of innovation capabilities in Brazil's industrial landscape over time? What are the similarities and differences observed over these years? The results reveal that Brazilian firms continue to predominantly exhibit reactive development processes, efficiency-oriented production, family-centric management structures, and traditional pricing strategies from 2014 to 2021. These trends indicate that Brazilian firms tend to adopt a reactive rather than proactive approach, diverging from pathways conducive to innovation. Understanding this profile can inform strategic decisions related to resource allocation, customer engagement, and future investments. Based on that, we identify paths to innovation for these firms.