RESTRICTIONS ON INNOVATION IN BRAZIL: A DEVELOPMENTAL STUDY ON MICRO AND SMALL BUSINESS

Abstract

This paper has as objective analyze the importance of innovations for the competitiveness of micro and small enterprises focusing mainly on the restriction faced by them and that hinder the innovation process and thus seeking to show the way and adopted policies that would facilitate greater levels of investment in innovations, reducing difficulties. Initially became a theoretical review of several studies that approach the relationship between innovation and micro and small enterprises, emphasizing, subsequently, the between innovation and competitiveness. This emphasis is given by the analysis of empirical studies for Brazil. Finally we present suggestions for alternative policies to encourage innovation in order to provide more competitiveness to micro and small enterprises. The paper concludes that the importance of innovation consists in raising the competitiveness of enterprises, but not limited to this, it is also a source of generating economic growth. Therefore, it is needed a greater government involvement, a change in the relationship between enterprises and an ideological shift of owners, about the importance and need for generation and adoption of innovations.