ABSTRACT
The existence of and the need for development banks (DBs) is an opinion divider. In a market economy, DBs would only operate in the so-called market failures. However, what is the role of DBs in the knowledge economy? From our perspective, and based on the Brazilian Development Bank (BNDES) experience, the knowledge economy demands an important change in the methodologies used by DBs to analyze firms and markets, beyond the traditional understanding of the tangible aspects of these institutions.
