انتظارات بزرگ: برداشت مدیریتی برزیلی درباره سرمایه گذاری مشترک با فن آوری پیشرفته آینده نگرانه اروپایی

In this paper the authors examine the views of Brazilian Managing Directors of prospective high-tech joint ventures with European or US firms. It provides insights on the importance of contributions from a typical local (Brazilian) partner firm, as well as from a typical foreign (European or US) partner firm. It also uses a panel of Specialists in order to classify independently two groups of firms: the most suitable and the least suitable to international joint ventures. Several differences concerning the perceived importance of prospective contributions were identified between the two groups of local firms.

Emerging economies, in particular those associated with large potential customer bases in China, Brazil, India and Mexico are increasing their importance in the global economic environment. In a recent article in this Journal, Govindarajan and Gupta (2000) indicated the increasing importance of large emerging economies such as Brazil, China, India and Mexico in the international economic environment. Such economies are expected to be home to a number of the world's 500 largest enterprises in the next 20 years. Even more striking is their suggestion that during this period the economic centre of gravity of the world will shift towards countries that are currently classified as developing countries. The trend is expected to speed up in coming years due to the fast relative growth of the economy of the developing versus developed countries, and the strategies of firms trying to secure first-mover advantages in emerging markets, benefiting from economies of scale, and locational advantages. These developments are not limited to low- and medium-technology initiatives as is frequently assumed in the literature on international business, but include a number of areas of high-technology. Emerging economies, in particular in Latin America and in countries in transition, are expected to show strong technology-driven growth (Simos, 2000). In a Survey sponsored by Fleet-Boston Financial, more than 50 per cent of 200 senior multinational executives indicated technology and telecommunications sectors fuelling Latin America's growth over the next four years (cited in America's Network, 2000). Regional groupings of high technology enterprises are expected to attract a large number of these investors in emerging economies, as is the case of Campinas in Brazil (Business Week, 1998). Biotechnology is one of the areas about which policy makers in these large emerging economies are particularly enthusiastic. Modern biotechnology, normally associated with genetic engineering, emerges at the end of this century as promoting an unparalleled technological revolution (OTA, 1984 and EU White Paper, 1994). Although well advanced in developed countries, this biotechnological revolution has only started to reach emerging economies. Joint ventures may be one way to integrate emerging economies in its development. The use of various forms of co-operation between firms of emerging economies and firms of developed countries, including the Joint Venture, can accelerate the process of transfer and adaptation of advances already reached in developed countries, as well as the development of new products and processes. It is particularly important when considering that biotechnology could solve humanity's major problems clearly concentrated in developing countries. Brazil can be seen as representative of other large emerging economies (China, Mexico, India and Poland) relative to high technology, or biotechnology in particular. Because its legislation was only modified to allow patenting of genetic engineered micro-organisms in 1997, Brazil does not have a significant number of alliances in modern biotechnology (Agostinho, 1991). There has been a substantial increase in the inflow of foreign investments in this area since 1997, particularly from large companies such as Monsanto, Hoechst-Schering, Dow Chemical and Du Pont (Chemical Week, 1999 and Chemical Week, 2000a). Small- and medium-sized enterprises are also expected to benefit from these changes. The recognition of pharmaceutical patents (including biotechnological products) in Brazil is expected to act as an incentive for the internal development of this technology, or its adaptation to the local market (see World Bank, 1998, pp. 26–27). The importance of this Study derives also from the fact that there is very little work in English about Brazilian business, and very few joint ventures in Brazil.

This paper points out the importance, according to the views of Brazilian MDs and Specialists connected to the biotechnology area, of expected future contributions from partners in a joint venture with one or more European (or US) foreign firms, i.e., firms not yet operating in Brazil. The comparison of the views of MDs from the most suitable firms and from the least suitable firms has indicated differences regarding the local partner potential contributions. One of the most controversial items, which also presented a substantial contrast in ranking between these two groups of firms, was ‘low cost labour’ (the most suitable group of firms ranked this contribution as the most important). As most of the MDs were comparing the salaries of highly qualified personnel, and biotechnology is not labour intensive, it seems reasonable to assume that those salaries are perceived to be considerably lower in Brazil (or for this matter in emerging economies) than those in developed countries. This contribution has not previously been identified in the literature concerning high-technology sectors. There are differences in perceptions also with regard to ‘raw materials’, ‘political advantages’, and ‘MDs’. The most relevant potential contribution from the local partner as pointed out by both MDs and Specialists was ‘general knowledge of the local economy, politics, and customs’. The item ‘fastest speed of entry into the local market, considering the existing alternatives to the foreign partner’ has also been pointed out as important. It endorses the literature. Moreover, Glaister and Buckley (1997) in studying partner selection criteria within developed country firms, also indicated similar criteria affecting partner selection.3 The result is in line with the literature which considers US multinational managers in the beginning of the 70s (Stopford and Wells, 1972). This observation, and related ideas,4 implies that the line of thought of Brazilian executives in the 90s agree with those of US MNE executives of the 70s. It could indicate paths for future research. As to foreign partner potential contributions, the most prominent item was ‘technology’, followed by ‘complementary line of products’ and ‘technical personnel’, re-emphasizing the importance of the item technology. Contractor and Lorange (1988, p. 13) point out the importance of co-operative agreements in technological joint developments, particularly of biotechnology firms, whereas Hladik (1988, pp. 189–190) suggests its importance to firms in LDCs (or in emerging economies) in accessing technology. On the development of strategies of international joint ventures, the expectations listed and examined in this paper may be of fundamental importance because they bring out important elements of negotiation. It is hoped that this initial study of potential future contributions of the partners of a joint venture with an emerging market firm can encourage this type of enterprise in the area of biotechnology. The joint venture could become an important channel for emerging economies to obtain biotechnology.