Integrating competition and industrial policies in Brazil: pathways to foster a dynamic digital economy through antitrust and innovation
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Context: This article explores the intricate relationship between industrial and competition policies in the digital economy, with a particular focus on Brazil. It examines the resurgence of industrial policy approaches designed to promote innovation and competitiveness while addressing the evolving role of competition policy in maintaining market neutrality. Highlighting the key role of Brazil’s Administrative Council for Economic Defense (Cade), the study emphasizes how antitrust measures intersect with regulatory governance and industrial initiatives in fostering a dynamic digital economy.
Objective: The main objective is to analyze the interaction between industrial and competition policies in Brazil, highlighting their complementary and conflicting aspects. By exploring the country’s regulatory framework and its implications for the digital economy, the article seeks to identify strategies for achieving policy integration that supports innovation, competition, and contestability in these markets.
Methodology: The study employs a literature review approach, subsequently analyzing emerging trends in Brazil. It develops a research agenda focusing on the interplay between industrial and competition policies, offering preliminary insights rather than definitive conclusions. The structure includes a historical overview, an exploration of policy intersections, and an analysis of Brazil’s regulatory practices and their economic impacts.
Conclusion: The article highlights the need for alignment between policies to address the challenges of the digital economy, such as innovation bottlenecks, regulatory inefficiencies, and market concentration. By integrating these policies, Brazil can create a digital environment that is more conducive to innovation and competitiveness. In this regard, the study highlights the development of the Pix payment system, along with other initiatives, as an example of effective policy integration that balances state-led actions with market dynamics. It also emphasizes the role of Cade in ensuring conditions that foster innovation and competition throughout the economy.
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