An analysis of the competitive process in Brazilian industry based on the use of a sectoral simulation model

ABSTRACT This paper analyses the development of the competitive process in specific sectors of Brazilian industry, based on a computer simulation sectoral model. The sectorial evolutionary model is calibrated to represent sectors of Brazilian industry, which are grouped according to their technological behaviour, following the OECD proposal of separating industrial activities into groups of technological intensity. For the calibration of sectors, data on the innovative performance of industries are used, based on the Industrial Innovation Survey (PINTEC) and the Annual Industrial Survey (PIA). The results of the simulations are used in the econometric model of panel data to analyse not only the relationship between productivity and quality increments on the competitiveness of selected sectors of the industry but also to evidence the presence of behavioural regularity in the long-term trajectories of the variables investigated in the presence of heterogeneity among firms.