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This paper aims at contributing to the debate on industrial policy and economic development in Brazil. At first, theoretical approaches that support industrial policy-making are discussed, with emphasis on the neoschumpeterian/evolutionary approach, which focuses on innovation as prime mover of economic development and on the co-evolution of technologies, institutions, and industries and firms structures. Next, such an approach is applied to explain some succesful expierences of industrial policy-making and economic development in Brazil up to the end of the 1970s, and the failures to implement such a policy from the 1980s onwards. Finally, the present government industrial policy is evaluated, arguing that although it has some positive aspects like the focus on innovation, clearly defined targets and a new instititutional organization, it fails as an economic development policy because of weakness such as incompatibility with macroeconomic policy, inconsistencies of policy instruments, deficiencies in infrastructure and in the science, technology and innovation system, and a lack of coordination and political drive. (Rev Econ Polit/GIGA)

This article examines the new conditions created by the Brazilian automotive regime since the second semester of 1995. First, it discusses the main controversies surrounding the implementation of a new modality of industrial policy on the part of the federal government and the incentives granted by the state governments to the companies of the automobile sector in Brazil. Second, it sketches a picture of the situation of this industrial sector, with emphasis on the changes that are happening in the relationships between assembling industry and auto parts industry. (Rev Econ Polit/DÜI)