Research points to paths for Brazil's economic
Posted: Thu Jan 30, 2025 4:59 am
A study carried out over decades gave rise to the new book that mapped out challenges that prevent the country from developing technologically.
Brazil has increased its spending on research and development (R&D) in recent times, reaching a rate of 1.3% of GDP in the past decade, a higher investment than some countries with higher per capita income in the Organization for Economic Cooperation and Development (OECD). However, these investments have not resulted in increased innovation in the country, since despite the growth in the number of PhD graduates and scientific publications, the average growth rate of patent registrations by Brazilians in the last 20 years has been less than 1%. It is in this controversial scenario that a study by the Brazilian School of Public and Business Administration (FGV EBAPE) emerged.
The study gave rise to the book “Technological capacity vp it email database and innovation: challenges for the industrial and economic transition of Brazil”. Leading this study, researcher Paulo Negreiros Figueiredo highlights some inconsistencies in Brazil in terms of efforts in science, technology and innovation:
“More than 50% of R&D investments in Brazil are concentrated in basic research in the public sector, while in OECD countries, the private sector accounts, on average, for more than 60% of national R&D expenditure. In China and South Korea, for example, this proportion reaches 70%. Therefore, contrary to common sense, it is not a question of Brazil’s low investment in science, technology and innovation, but of ineffective investment,” warns the researcher.
Challenges to increase the country's innovation rate
In this scenario, among Brazilian companies that innovate, the vast majority make small adaptations and creative imitations, instead of engaging in substantial changes to existing technologies or producing their own technologies. However, according to Figueiredo, if companies with a low level of innovation were well encouraged and supported, they could evolve to levels of innovation that add more value to the country's economy.
“It is important for companies to identify their level of capacity for innovation, since a passive user of technology will have difficulty evolving in an international scenario, whereas a company that develops capabilities for significant technological innovations has a greater chance of achieving competitive positions in the international market,” highlights the researcher, mentioning that the book is capable of helping managers assess their level of technological capacity for innovation and design their innovation strategies.
Since the 2000s, Brazil has increased the number of public policies aimed at ST&I, contributing to the construction of a national infrastructure related to innovation in Brazil. However, as the study points out, this system is far behind what is achieved in technologically and scientifically developed economies, as well as in other emerging or middle-income economies. Figueiredo believes that instead of increasing investments in R&D, it would be more sensible to prioritize increasing the effectiveness of existing investments.
“If Brazil does not increase its innovation rate in a consistent and sustained manner, the country will most likely continue to undermine its transition to higher levels of industrial and socioeconomic development. In addition, structural difficulties also hinder Brazil’s path to innovation, as it is very common for three or four companies in a given sector to dominate that industry and end up inhibiting competition, an important factor for innovation. Since Brazil suffers from this lack of competition in different sectors, there is a disincentive to innovation.”
Brazil has increased its spending on research and development (R&D) in recent times, reaching a rate of 1.3% of GDP in the past decade, a higher investment than some countries with higher per capita income in the Organization for Economic Cooperation and Development (OECD). However, these investments have not resulted in increased innovation in the country, since despite the growth in the number of PhD graduates and scientific publications, the average growth rate of patent registrations by Brazilians in the last 20 years has been less than 1%. It is in this controversial scenario that a study by the Brazilian School of Public and Business Administration (FGV EBAPE) emerged.
The study gave rise to the book “Technological capacity vp it email database and innovation: challenges for the industrial and economic transition of Brazil”. Leading this study, researcher Paulo Negreiros Figueiredo highlights some inconsistencies in Brazil in terms of efforts in science, technology and innovation:
“More than 50% of R&D investments in Brazil are concentrated in basic research in the public sector, while in OECD countries, the private sector accounts, on average, for more than 60% of national R&D expenditure. In China and South Korea, for example, this proportion reaches 70%. Therefore, contrary to common sense, it is not a question of Brazil’s low investment in science, technology and innovation, but of ineffective investment,” warns the researcher.
Challenges to increase the country's innovation rate
In this scenario, among Brazilian companies that innovate, the vast majority make small adaptations and creative imitations, instead of engaging in substantial changes to existing technologies or producing their own technologies. However, according to Figueiredo, if companies with a low level of innovation were well encouraged and supported, they could evolve to levels of innovation that add more value to the country's economy.
“It is important for companies to identify their level of capacity for innovation, since a passive user of technology will have difficulty evolving in an international scenario, whereas a company that develops capabilities for significant technological innovations has a greater chance of achieving competitive positions in the international market,” highlights the researcher, mentioning that the book is capable of helping managers assess their level of technological capacity for innovation and design their innovation strategies.
Since the 2000s, Brazil has increased the number of public policies aimed at ST&I, contributing to the construction of a national infrastructure related to innovation in Brazil. However, as the study points out, this system is far behind what is achieved in technologically and scientifically developed economies, as well as in other emerging or middle-income economies. Figueiredo believes that instead of increasing investments in R&D, it would be more sensible to prioritize increasing the effectiveness of existing investments.
“If Brazil does not increase its innovation rate in a consistent and sustained manner, the country will most likely continue to undermine its transition to higher levels of industrial and socioeconomic development. In addition, structural difficulties also hinder Brazil’s path to innovation, as it is very common for three or four companies in a given sector to dominate that industry and end up inhibiting competition, an important factor for innovation. Since Brazil suffers from this lack of competition in different sectors, there is a disincentive to innovation.”