SERGIO SALLES

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Issues and figures about the Brazilian System of
Science, Technology and Innovation

• SERGIO SALLES
• Dept. of Science and Technology Policy
• Institute of Geosciences
• University of Campinas
• BRAZIL

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Objective

• Recent experience in building a (true) S,TI
  System in Brazil
  
• Some instruments
• Challenges macro and micro policies

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System of innovation A new old issue

• We must give priority to the articulation of
  three different actors university, industry and
  government
  
• The interaction between industry and university
  will be fostered throughout joint research
  programs in selected sectors

This is not a Triple Helix Statement,
nor a Sabatos Triangle
This is an extract of the 1st Plan for National
Development, 1972 - 1974
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Why have we been walking in cricles for the past
40 years?
Why dont they cooperate?
I have been trying so long and so hard for this
Why dont we have a real System of Innovation?
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Two separated systems
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Some figures about the Brazilian NSI
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Some figures about the Brazilian NIS

• Expenditures with ST 1.1 GDP (- US 10 bi)
• 60 public 40 private
• Growing scientific production from 0,6 in the
  80s to1.7 of the global ISI publication
  
• Low level of IP only 0,06 of the USPTO
• 1980 Brazil 24 South Korea 9 patents
• 2000 Brazil 98 South Korea 3472 patents
• 10,000 new PhD every year
• 40,000 new MSc every year
• Some quite strong public research institutions
• New (and strong) private non profit research
  institutions
  
• Increasing of FDI, including RD activities
• Increasing Formal education

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Some figures about the Brazilian NIS

• Acquisition of machines and equipments accounts
  for 80 of the innovative activities among firms
  
• In-house RD and acquisition of external RD in
  firms are very low compared to any other country
  that presents similar level of industrial
  development
• Yet a large deficit in the technology balance
  (over US3 bi)
  
• Tax incentives account for more than 40 of the
  private investment
  
• Only 1.3 of innovative companies are truly
  innovative (introduced new products and new
  processes for the country level or for the global
  level)

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Recent financial instruments to foster innovation
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Evolution of funds applied by FINEP
US 2,3 BI
US 1,7 BI
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16 Sectoral funds (started in 1999)

• Amazonia
• Mining
• Water
• Transportation (land)
• Transportation (water)
• Telecom
• Infrastructure (horizontal)
• Green and Yellow (horizontal)

• Oil and gas
• Electric energy
• Aeronautics
• Space
• Health
• Biotechnology
• Agriculture
• Informatics

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Reimbursable and non reimbursable funds to firms

• Reimbursable
• Low (comparing to our normal) interest rates
  (5)
  
• Zero interest rate, no real warranty required (to
  SME), just inflation correction
  
• Non reimbursable
• Subvention to firms in 4 ways
• DIRECT public bids to high innovative proposals
  new products and processes US 800 million in
  three years
  
• Match fund with States to foster technology based
  firms (micro and small ones)
  
• PRIME a program to foster the emergence and grow
  of start ups from incubators
  
• University/Industry joint projects

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Venture capital

• INOVAR
• Brazilian Forum of Venture Capital
• Incubator of venture funds 14 new funds to
  venture and seed capital
  
• Training agents to diffuse venture capital

Tax incentives

• New law covering several kinds of incentives
• Informatics (specific one)

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Cooperation in S,TI

• Diversified scientific cooperation
• Every field of knowledge
• Rare (but important) technology cooperation
• Space, agriculture, health
• Scarce cooperation to innovation

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What should we pursue?Macro and micro policy
instruments
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Policies have been walking around

• Industrial, scientific and technological, and
  external commerce policies have never been
  conceived and implemented as components of the
  same policy
• There were several initiatives in the past 40
  years
  
• All of them had good intentions
• Every one failed
• Now another opportunity the very recent Policy
  for Productive Development (issued this month)
  
• The only way is to amplify global competitiveness
  of national companies and use public research
  centers as arms to foster development

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Tendencies to the macro perspective
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Tendencies to the micro perspective
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Tendencies to the micro perspective
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Thank you for your attention

• monteirosalles_at_gmail.com