Multinational Enterprise (MNE) Supplier Networks: Organizational Innovation or Innovation Policy?
AbstractIn the context of Brazil/Chile, this article examines ways in which innovation policy can enhance the competitiveness of developing countries while building on organizational innovations which benefit multinational enterprises (MNEs). After a survey of Brazilian/Chilean innovation policy, we conclude that it has failed to bring about linkages between firms. One exception is provided by a Brazilian supplier network programme - an initiative which helps generate links between large and small firms. However, there is no Brazilian or Chilean programme designed to create linkages between MNEs and local firms. We argue that if the supplier network were modified to do just this, increases in MNE and national competitiveness would ensue.
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