The big business bias and the challenges to the brazilian industry

Abstract

The article investigates the presence of mechanisms favoring business groups (big business bias) and its impact on the business environment in Brazil. Looking at key institutions in the Brazilian productive regimes, namely, access to credit, innovation system and inter-firm relationship, the article argues that the way business groups organize themselves not only create hierarchical and asymmetrical relationships but also enable entry barriers to creating new wealth. The article concludes that the barriers to greater dynamism of the Brazilian industry are rooted in complex institutional dynamics, silenced in the public debate.