The Cost of Missions: Lessons from Brazilian Shipbuilding

Abstract

This chapter focuses on the challenges of implementing mission-oriented policies (MOPs) in developing countries, with a particular emphasis on the Brazilian shipbuilding sector. The aim is to analyze the difficulties associated with setting MOPs and their impact on market creation and innovation. Despite the implementation of comprehensive institutional arrangements to foster technological and industrial development, the sector’s progress has been hindered by coordination uncertainties and high capability-building costs. The policies initially provided a boost, but the industry ultimately failed to catch up with international competitors. The article highlights the blurred boundary between policy expectations for market creation and the practical limitations of building a thriving industry.