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From Underdogs to TigersThe Rise and Growth of the Software Industry in Brazil, China, India, Ireland, and Israel$
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Ashish Arora and Alfonso Gambardella

Print publication date: 2005

Print ISBN-13: 9780199275601

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780199275601.001.0001

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The Brazilian Software Industry

The Brazilian Software Industry

(p.99) 5 The Brazilian Software Industry
From Underdogs to Tigers

Antonio J. Junqueira Botelho

Giancarlo Stefanuto

Francisco Veloso

Oxford University Press

Starting in the early 1990s, a growing and increasingly open Brazilian economy spurred extraordinary development in the domestic IT and software sectors. Firms across the economy invested in IT and created demand for the nascent software industry. However, the market incentives drove a number of software firms towards serving numerous regional clients, instead of the riskier strategy of investing in product development or pursuing service exports. As a result, Brazilian companies matured more slowly compared to India and other developing countries emerging as lead players in the international software market. Industry prospects changed with the emergence of lead domestic client sectors in banking and telecom, and with the growth of competition, coupled with a strong entrepreneurial culture. These observations demonstrate that there are alternative paths to those followed by India, Ireland, and Israel in the acquisition of competencies in the software industry.

Keywords:   domestic market, Brazil, lead users, MNC, technology policy

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