How public policies have shaped the technological progress in the Brazilian aeronautics industry: Embraer case

Despite the growing interest in Embraer, the Brazilian world leading aircraft manufacturers, little empirical research exists on the role of Public Procurement for Innovation (PPI), in Brazil, on the shaping of technological capabilities of the aeronautics industry. To capture those impacts, developing a methodological approach is necessary. Thus, the objective of this article is to evaluate the impacts of PPI on Embraer over the last forty years, developing a model for categorizing and analyzing the general technological aspects of those impacts, implemented through Brazilian Defense Acquisition Programs. The results suggest that the Brazilian Aeronautical Policy led to the development of very specific technical capabilities in Embraer, which allowed its evolution in civil aviation.