Regional development in Brazil and the challenges facing technology-intensive cities: A proposal for a framework of a municipal innovation system

There are Brazilian cities that have evolved from a low-tech status to become relevant players in the high-tech arena, as it is the case of São José dos Campos, in the State of São Paulo. It is at the center of the Brazilian aerospace and defense industries, and it displays companies such as Embraer, Avibrás, Petrobrás, Visiona, Johnson & Johnson, National Panasonic, Monsanto, and General Motors, as well as important R&D institutions, namely the Department of Aerospace Science and Technology, the National Institute of Space Research, the R&D laboratories of Boeing and the Airbus Group, and universities, such as the Federal and The State Universities of São Paulo, and the University of the Paraiba Valley. Stakeholders have been addressing the strategic challenges facing the city, and their impacts on the sustainability of its competitive position. Initiatives were implemented, including the creation of a competitiveness center and technological parks, reinforcing the existing innovation system. The paper will discuss current and future competitive issues and challenges, such as the development and production of a new fighter jet for the Brazilian Air Force, and it will propose a framework for an innovation system, supporting the political decision making process regarding strategic initiatives.