Innovation and human capital in Brazil: challenges and achievements

Innovation and human capital in Brazil: challenges and achievementsCláudio Marinho

Northeast Brazil Business Mission to IndiaMumbaiNovember 20, 2008

“India is an immensely diverse country with many

distinct pursuits, vastly disparate convictions, widely

divergent customs and a veritable feast of

viewpoints.”

Amartya Sen, The Argumentative Indian, 2006

4

People (culture, history, geography) matter: the

process of value creation of the place.

The world is not flat.

The new global geoeconomy

Infa

nt

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ival ra

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(p

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liv

e b

irth

s)--

Flip

log

560

998

GDP per capita in 1995 international dollars

Log

308 60 0001 000 5 000 10 000 20 0003 000

995

990

950

900

800

970

980

997

19001901190219031904190519061907190819091910

India 1911

191119121913191419151916191719181919

Japan 1920

1920192119221923192419251926192719281929193019311932193319341935193619371938193919401941194219431944194519461947194819491950195119521953195419551956195719581959

Brazil 1960

China 1960

Republic of Korea 1960

196019611962196319641965196619671968196919701971197219731974197519761977197819791980198119821983198419851986198719881989199019911992199319941995199619971998199920002001

Africa

Americas

Arab countri

es

Asia

Europa

Brazil: size mattersBrazil: size mattersCountries with population Countries with population

> 150 million > 150 million Countries with areaCountries with area

> 5 million km2> 5 million km2

Countries with GDPCountries with GDP> USD 600 billion> USD 600 billion

Brazil is a BIGBrazil is a BIGcountrycountry

EUAEUA

BrasilBrasilChinaChina

RússiaRússia

ÍndiaÍndia

JapãoJapão

IndonésiaIndonésia

PaquistãoPaquistão

NigériaNigéria

BangladeshBangladesh

MéxicoMéxico

Países baixosPaíses baixos

Reino UnidoReino Unido

Coréia do SulCoréia do Sul

ItáliaItália

EspanhaEspanhaFrançaFrança

AlemanhaAlemanha

CanadáCanadá

AustráliaAustrália

Fonte: MIC (Brasil & Parceiros 2005)

Brazil is 77% urban

India is 28% urban

Innovation: the Brazilian

achievements

Equator

30ºN Cancer

30ºS Capricorn

Brazil has created the most competitive tropical agriculture of

the world

Since the end of the XIX century the Brazilian government has a special

interest in supporting agriculture R&D

3 7 , 2

4 1 , 9

4 , 7

- 3 0

- 2 0

- 1 0

0

1 0

2 0

3 0

4 0

8 0 8 1 8 2 8 3 8 4 8 5 8 6 8 7 8 8 8 9 9 0 9 1 9 2 9 3 9 4 9 5 9 6 9 7 9 8 9 9 0 0 0 1 0 2 0 3 0 4 0 5 *

U S

$

b

i l

lio

n

Brazilian trade balance

TOTAL

AGRIBUSINESS

OTHERS

* nov/2004 to october/2005

Source: Agriculture Ministry

Source: Agriculture Ministry CROPS: cotton, corn, rice, soybean, among others

9 0

1 0 0

1 1 0

1 2 0

1 3 0

1 4 0

1 5 0

1 6 0

1 7 0

1 8 0

1 9 0

2 0 0

2 1 0

2 2 0

9 0 / 9 1 9 1 / 9 2 9 2 / 9 3 9 3 / 9 4 9 4 / 9 5 9 5 / 9 6 9 6 / 9 7 9 7 / 9 8 9 8 / 9 9 9 9 / 0 0 0 0 / 0 1 0 1 / 0 2 0 2 / 0 3 0 3 / 0 4 0 4 / 0 5 *

Í N

D I

C E

Productivity x agriculture land

Production:

Total growth : 96%

Annual average : 4,9%

Brazilian 2005/06 grains production: 125 million tons

Area:

Total growth: 28,5%

Annual average: 1,8% 49 million has

125 million tons

Brazil: agribusiness and sustainability

Source: VEJA magazine, 03/03/2004

Source: ANFAVEA, 2004

Expansion of the agriculture area in Brazil

NORTH

CENTER WEST

SOUTH

SOUTHEAST

NORTHEAST

The new internationalizaton of Northeast Brazil: intensive in capital, technology and logistics

Human capital: the Brazilian challenges

Brazil: Ministry of Education

From 1909 through 2002, the Brazilian Government has built 140 technical schools. From 2002 to 2010, the Ministry of Education is investing more than US$ 400 million in the construction of 354 new technical schools for 500,000 students.

Brazil: National Industry Confederation

In the period 2008-2010, the Brazilian industrial association, in cooperation with the Ministry of Education, will offer 16,2 million new opportunities for education in the basic, professional and technological levels.

Brazil: National Commerce Confederation

In the period 2008-2010, the Brazilian commercial association, in cooperation with the Ministry of Education, will offer 9,1 million new opportunities for education in the basic, professional and technological levels.

The sweet spots

In my view, Brazil’s international challenge....

...is how to deal with the Chinese crowding-out effect on the world resources...

...and with the way the BRIC economies will evolve in the near future.

37

Go glocal

Imago

Are our strengths also good for your business?

Can we have win-win partnerships?

by Flickr

You are welcome to Northeast Brazil!

Cláudio Marinhocmarinho@gmail.com