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de Holanda Schmidt, Flávia
Soares de Assis, Lucas Rocha
Year of Publication: 
Series/Report no.: 
Texto para Discussão, Instituto de Pesquisa Econômica Aplicada (IPEA) 1878
Abstract (Translated): 
Over the last decade, the defense industry has consistently obtained relevance on the agenda of public policies of the Brazilian government, among which it is worth highlighting the National Defense Industry Policy (2005), the National Defense Strategy (2008), and the Greater Brazil Plan (2011). The ongoing revitalization not only has support in government documents and legislation as it is also taking place in the productive sector, as seen through the large recent projects that have articulated the Ministry of Defense (MD) and the Armed Forces and Brazilian industry. Departing from the premise that the success of this process requires not only that the Armed Forces have modern equipment and skilled military to operate them, but also that the country retains the technological expertise that enables the production of such equipment inward, and the conditions for their constant improvement and introduction of innovations, this text offers information on defense procurement undertaken between 2001 and 2010 by the MD and subordinate organizations for the purchase of defense goods and analyzes selected characteristics of supplying firms. Considering also that the MD, as the main buyer of the industry in the country - virtually the single one, may shape industry development through the requirement of specific attributes, once it determines the selection conditions for each acquisition, this paper analyzes if the MD has been able, through the selection of its suppliers, to contribute to the development of a Defense Industrial Base (DIB) that is adequate to national interests, testing the hypothesis of differentiation of individual attributes of supplying firms. The results indicate that in 2010 the total value of contracts obtained by firms was positively associated with microeconomic characteristics that are related to the establishment of a sustainable and competitive DIB.
defense industry
public procurement
defense procurement
Document Type: 
Working Paper

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