The dynamics of innovation in CoPS industries: evidence from the Brazilian aerospace industry

ABSTRACTThis article frames the central role played by mission-oriented public procurement in the Brazilian aerospace industry. The difficulties in mastering and promoting the evolution of several disciplines at the firm level, with a relative scarcity of funds for an R&D-intensive industry and an incomplete national innovation system represent merely a fraction of the threat faced by those dealing with Complex Products and Systems. The culture of financing flagship projects using public procurement narrows the potential solutions for complex problems, imposes time constraints to mature critical technologies and exposes these endeavours to high levels of risk. By taking the Dynamic Capabilities as a theoretical framework and Technological Readiness Level as a yardstick to the decision-making process, we have developed a construct to explore two in-depth cases. A cultural shift is required, aiming at providing the means to the progressive maturation of critical technologies using public procurement for innovation.KEYWORDS: AerospaceComplex Products and Systems (CoPS)public procurement for innovationdynamic capabilities Disclosure statementNo potential conflict of interest was reported by the author(s).Additional informationFundingThis work was supported by National Council for Scientific and Technological Development (CNPq) [grant number Institutional Training Program (PCI)].Notes on contributorsMilton de Freitas Chagas JúniorMilton de Freitas Chagas Júnior: I have a Bachelor's degree in Civil Engineering from the Polytechnic School of the University of São Paulo (EPUSP). I obtained my Master's and Ph.D. degrees in Science from the Technological Institute of Aeronautics (ITA), specializing in Production Engineering with a research focus on economics and technological innovation management. I work as a technologist and professor in the postgraduate program at INPE in the Space Engineering and Technology (ETE) field. My research experience lies in economics and technological innovation management, with emphasis on industrial organization. I primarily engage in the following topics: technological innovation projects, research and development projects, new product development, system integration, and technological and organizational change. I have been serving as ad-hoc reviewer for FAPESP in the research projects evaluation in the Production Engineering field since 2009. I am also certified by the Project Management Institute (PMI) as a Project Management Professional (PMP).Josiane de Araújo FrancelinoJosiane de Araújo Francelino: I have a Bachelor's degree in Economic Sciences (2001) and a Master's degree in Economics (2004), both from the State University of São Paulo (UNESP). I obtained my Ph.D in Science from the Technological Institute of Aeronautics (ITA), specializing in Production Engineering with a research focus on Industrial Economics and Innovation Management (2016). My main line of research brings elements that contribute to the understanding of the technological impacts of defense and space programs in the technological capability building of aerospace industry, and for the design of aerospace industrial policy. I have professional experience as a Lieutenant Economist at the Brazilian Air Force (2005-2013) in pricing and valuation, contract and supplier management; and as a researcher (PCI) in the National Institute for Space Research (INPE) in valuation and public procurement for innovation (2017-2023). Currently, I work as a professor in Federal Institute of Education, Science and Technology of São Paulo (IF) in the management area.