Public politics and innovation of the telecommunications sector

Abstract

The present article evaluates the public policy towards the telecommunication sector in Brazil, taking into consideration the dead scheme of state monopoly and the introduction of processes of privatization, economic liberalization and technological innovation. It is described the increase in direct foreign investments, new forms of technology innovation, introduction of regulatory institutions, goals for investments and scopes of service attendance. Through a wide bibliographical review, data analysis and interviews with specialists, entrepreneurs and public policy makers, it was possible to better understand the role of the public policy on the national technological innovation capabilities in the sector. The results demonstrate that the commercial balance in telecommunication's equipments has increased its deficit as well as the expenses with the foreign technology transfer contracts. The new market structure was achieved mainly due to an elevation of internal prices to international levels and the legislation favorable to the competition among incumbents. It is identified an absence of policies and incentives of the public sector in the telecommunications technology innovation system, allowing an increased Brazilian dependence on foreign supply.