Policy directives and policy implementing capacity: the financing of industrial and innovation policies by the brazilian development bank (BNDES)

Abstract

This article analyses the contribution of thc Brazilian Development Bank (BNDES) to selected priorities, specially innovation, of Brazil's recent industrial and innovation policies (2007-2015). To this end, we make an exploratory effort to establish relational and empirical linkages between policies' directives, BNDES's priorities, the direction of financial concessions, the results of investments (thus the efficiency of the financing) and their observed consequentes (lhe effectiveness of BNDES's actions). The Brazilian case demonstrates the relevante of development finance institutions (DFIs) to economic development especially in amas of high uncertainty but potentially high development retums.