Demétrio ToledoDemétrio ToledoDemétrio ToledoDemétrio ToledoUniversityUniversityUniversityUniversity ofofofof São Paulo, São Paulo, São Paulo, São Paulo, BrazilBrazilBrazilBrazil

Smart G Colloquium:Science, Technology and Innovations Systems in Africa and Brazil

Helsinki9-12 August, 2010

UniversityUniversityUniversityUniversity ofofofof São Paulo, São Paulo, São Paulo, São Paulo, BrazilBrazilBrazilBrazil

� A New Developmental Path for Brazil?

� Development and STI in Brazil, 1945-2010.

The 4th Conference on Science, Technology, � The 4th Conference on Science, Technology, and Innovation.

� STI Roadmap Brazil 2010-2020.

� For the first time in decades a global crisis did not translate into a macroeconomic crisis in Brazil;

Brazilian GDP Real Growth Rate (%), Brazilian GDP Real Growth Rate (%), Brazilian GDP Real Growth Rate (%), Brazilian GDP Real Growth Rate (%), 2002200220022002----2010201020102010

2.661.15

5.71

3.163.96

6.095.14

-0.19

8

-2

0

2

4

6

8

10

2002 2003 2004 2005 2006 2007 2008 2009 2010

150,000.00

200,000.00

250,000.00

300,000.00

Foreign Reserves (thousands USD), Brazil, 1990Foreign Reserves (thousands USD), Brazil, 1990Foreign Reserves (thousands USD), Brazil, 1990Foreign Reserves (thousands USD), Brazil, 1990----2010201020102010

0.00

50,000.00

100,000.00

150,000.00

2002 2003 2004 2005 2006 2007 2008 2009 2010

0.599 0.6 0.6 0.598

0.592 0.5925 0.593

0.587

0.581

0.5690.566

0.56

0.58

0.6

0.62

GiniGiniGiniGini Index, Brazil, 1995Index, Brazil, 1995Index, Brazil, 1995Index, Brazil, 1995----2007200720072007

0.543

0.52

0.48

0.5

0.52

0.54

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

� Brazil is reducing poverty and inequality, andexpanding innovative social safety networks.

� And, simultaneously, government is playing a� And, simultaneously, government is playing amore active role in the making of overallpolicies oriented toward investment,innovation and competitiveness.

� State-led tradition (1940-80): development wouldbe achieved through industrialization and growth.Technology and innovation expected to emergefrom modernization, through MNEs spillovers,imitation and learning.

� 1990s: Partial dismantling of developmental state.Technology and innovation expected to come outfrom liberalized and deregulated markets.

� 2002: In search of development throughinvestment and innovation.

� Applied science: late 19th century;

� Intense institutionl building from 1950 onwards: industrialization and basic science(with some home-grown technology);(with some home-grown technology);

� 2000s: Development through innovation

� Instituto Butantã (São Paulo Vaccines Researchand Development Institute): 1901;

� CNPq (National Research Council): 1951;� Fapesp (State of São Paulo Research Foundation): 1962;National graduate programs: 1960s and 70s;� National graduate programs: 1960s and 70s;

� Finep (Research and Projects Funding Agency): 1967;

� MCT (Science and Technology Ministry): 1985;� ABDI (Brazilian Agency for Industrial Development): 2004.

� ISI and Inward orientation;� Extensive industrialization was the way to absorb technological capacity from MNEs and abroad;

� S&T policies aimed at fostering R&D � S&T policies aimed at fostering R&D infrastructure, and improving human resources;

� Technology was believed to be the outcome of industrialization and growth.

� Efficiency brought about by liberalization was a natural path towards development;

� Industrial policies were abandoned;� The agenda stressed new reforms: � The agenda stressed new reforms: privatization, deregulation, reduction of subsidies and tariffs;

� The opening up of the economy was considered to promote growth and development.

� The idea of building a national development plan gained momentum;

� 2007: Growth Acceleration Program (PAC);� Investment: US$ 300 bn until 2014;� Brazilian S&T policy is gradually shifting � Brazilian S&T policy is gradually shifting towards the productive and services sectors, keeping its focus on enterprises;

� New institutions, programs and tools.

� 1999-2003: Sector Funds;� 2nd National STI Conference: 2001� 3rd National STI Conference: 2005� 3 National STI Conference: 2005� PITCE (Industrial, Technological and Foreign Trade Policy): 2004;

� PDP (Productive Development Policy): 2008;� National Science and Technology Plan: 2007-2010;

� 4th National STI Conference: 2010.

1990s1990s1990s1990s 2003200320032003----2009200920092009Innovation Innovation Innovation Innovation

PoliciesPoliciesPoliciesPolicies NonePITCE – 2004aPDP – 2008 bS&T Plan - 2008 c

New Regulatory New Regulatory New Regulatory New Regulatory RulesRulesRulesRules

Competition Protection Law (1994)

Innovation Law (2004)“Good Law” (Lei do Bem, 2005)dBiotechnology security law (2005)Computer and Software Tech Law

New InstitutionsNew InstitutionsNew InstitutionsNew Institutions Regulatory Agencies(9)Sectoral Funds (14)

ABDIeCNDIfSectoral Funds (14)

CGEECNDIf

BNDES & FINEPBNDES & FINEPBNDES & FINEPBNDES & FINEPmain targetsmain targetsmain targetsmain targets

Privatization, ExportsPronex

Technology InitiativeBusiness Entrepreneurship FundCriatecPro-InnovationGrants Program - non refundableFirms Internationalization ProgramINCT - National Inst for S&T (119)

New New New New SectoralSectoralSectoralSectoralToolsToolsToolsTools

New Automotive Regime Informatics Law

Prominp (Petrobras)ProSoft (enlarged)Pro-PharmaceuticalsSibratec – National Tech. Networks

� Brazil remains competitive in standardized agricultural and industrial goods;

� However a small but important group of Brazilian firms are participating in international markets via exports of medium and high-technology goods; and high-technology goods;

� This group of highly competitive Brazilian firms generates positive spillovers in terms of wage and productivity;

� BNDES supports firms internationalization move.

China

15.1%

USASpain

South Korea

2.4%

Belgium and

Luxembourg

2.3%

Mexico

2.2%Russia

2.2%

Chile

1.9%Middle East

0.3%

Others

10.9%

13.2%

Argentina

8.2%

Netherland

6.6%Other Latin

American Countries

5.1%

Germany

4.5%

Other Euro Zone

Countries

4.4%

Japan

3.6%

Others Asia

3.2%

Venezuela

3.0%

Italy

3.0%

UK

2.9%

France

2.5%

Spain

2.4%

Autos and Parts

15%

Oil and FuelMechanical

Electronic Equipment

4%

Suger

3%

Pulp and Paper

3%

Others

10%

Oil and Fuel

13%

Iron Ore

11%

Metalurgical

11%Soybean

10%

Meats

8%

Chemicals

7%

Mechanical

Equipments

5%

30,000

35,000

40,000

Graduate Degrees (Masters and Ph.D.), Brazil, 1987Graduate Degrees (Masters and Ph.D.), Brazil, 1987Graduate Degrees (Masters and Ph.D.), Brazil, 1987Graduate Degrees (Masters and Ph.D.), Brazil, 1987----2009200920092009

0

5,000

10,000

15,000

20,000

25,000

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Masters Ph.D.

1500

2000

2500

0

500

1000

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2006

Masters Programs Ph.D. Programs

32.7

24.3

25.6

15.2

13.3

12.4

14.8

4.8

7.1

3.4

53.2

60.9

68.3

76.6

79.2

France

Germany

Japan

South Korea

USA

44.6

65.9

49

15.2

32.7

41.7

6.6

18.4

33.3

11.8

26.3

32.4

51.2

0 20 40 60 80 100

Argentina

Brazil

Spain

Russia

Enterprise Government University

Agrarian

Sciences

10%

Animal and Plant

Sciences

8%

Microbiology

Multidisciplinary

4%

Geology

4%

Materials Science

4%

Engeneering

3%

Social

Sciences

3%

Computer

Science

2%

Psychology

and Psychiatry

2%

Economics and Business

1%

Education

1%

Law

0%

Microbiology

6%

Farmacology

6%

Biology and Biochemistry

6%

Immunology

5%

Space Science

5%

Physics

5%

Ecology and

Environmental Sciences

5%

Mathematics

4%

Chemistry

4%

Neuro and Behavioral

Sciences

4%

Molecular Biology

and Genomics

4%

Medicine

4%

4%

2

2.5

3

0

0.5

1

1.5

1981198219831984198519861987198819891990199119921993 199419951996199719981999200020012002200320042005200620072008

1.49

1.82

2.08

2.54

2.68

3.44

3.46

3.47

China (2007)

Canada (2008)

France (2007)

Germany (2007)

USA (2007)

Japan (2007)

Finland (2008)

South Korea (2007)

0.46

0.51

0.61

0.68

0.92

1.12

1.13

1.13

1.27

0 0.5 1 1.5 2 2.5 3 3.5 4

Mexico (2005)

Argentina (2007)

India (2005)

Chile (2004)

South Africa (2005)

Russian Federation (2007)

Italy (2006)

Brazil (2009)

Spain (2007)

1.021.04

0.980.96

0.9

0.971

1.071.09

1.13

0.59 0.60.6

0.8

1

1.2

0.550.57

0.53 0.520.48 0.48

0.5

0.570.59 0.6

0.47 0.47 0.460.44

0.42

0.49 0.5 0.5 0.50.53

0

0.2

0.4

0.6

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Total Government Private Sector

� Axis I: The national STI system;

� Axis II: Innovation in society and companies; � Axis II: Innovation in society and companies;

� Axis III: Research, development and innovation in strategic areas;

� Axis IV: STI for social development.

� Axis I: The national STI system:Axis I: The national STI system:Axis I: The national STI system:Axis I: The national STI system:◦ Diplomas cannot have primacy over competence;◦ Few masters and Ph.D.s are engaged by companies in R&D.◦ Collaboration among government levels and with social segments demands clarity about each agent's social segments demands clarity about each agent's role.◦ Legislation that made relationships less rigid in STI could advance;◦ Sector Funds need new revenue sources;◦ Reduce costs in the innovation process;◦ Fully utilize the government's purchasing power.

� Axis II: innovation in society and companies:Axis II: innovation in society and companies:Axis II: innovation in society and companies:Axis II: innovation in society and companies:

◦ Innovation is key to a competitive, prosperous and sustainable economy;◦ STI integrated to companies' industrial policies increases capacity for competition;increases capacity for competition;◦ The risk of innovation should not be mistaken by bad use of resources.

� Axis III: research, development and innovation in Axis III: research, development and innovation in Axis III: research, development and innovation in Axis III: research, development and innovation in strategic areas:strategic areas:strategic areas:strategic areas:

◦ Space, Defense and Public Safety, traditional areas with renewed challenges;◦ Territorial issues;◦ Traditional strategic areas (space, defense and public ◦ Traditional strategic areas (space, defense and public safety);◦ Competitive advantages in agribusiness and the idea of an emerging pattern for sustainable agriculture;◦ Health;◦ Preservation of an exceptionally clean energy matrix and, in particular, the promising competence associated to bioenergies.

� Axis IV : social development:Axis IV : social development:Axis IV : social development:Axis IV : social development:◦ Construction of a scientific culture: through a more intense and qualified presence in the media;◦ STI and education: widening high school access and reducing dropout rates and failure in basic education;◦ Private and public actors: the roles of after-college ◦ Private and public actors: the roles of after-college learning, municipalities, social movements and entrepreneurial initiatives;◦ Social Technologies and technologic extension; ◦ Demands from the neediest sectors: food, energy, housing, health, the environment;◦ Democratization and citizenship; the right to the city and improvement of conditions in rural areas.

� The outlook is good for the next decade.

� But to reach those goals, Brazil must engage in a more intense process of creation of a in a more intense process of creation of a new generation of public policies and social institutions, which have already appeared in a number of policies and institutions for the STI sector since 1999, but need to expand and become more articulate with development policies.

� Brazilian National Innovation Agency

Who knows...?

�Obrigado!

� Thank you!

demetriotoledo@usp.brdemetriotoledo@yahoo.com