Transcript Inovar para o crescimento - Movimento Brasil Competitivo

1st US-Brazil Innovation Summit
Estratégias para o Desenvolvimento Global
21st Century Global Challenges
for Innovation
Glauco Arbix
University of São Paulo – USP
Observatory for Innovation and Competitiveness
Institute of Advanced Studies - USP
São Paulo, 11 de julho de 2007
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The Conundrum for Innovation
in the 21st Century
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Globally competitive innovation systems
Aging population demographics
S&T&I alter societal and governmental institutions
S&T&I advances have huge, immediate influence on
global and national economies, and on international
relations
 Nations are largely shaped by their expertise in and
access to S&T&I
 Major S&T&I advances of our time not only offer new
opportunities, but often challenge our social institutions.
S&T prominent role is widely recognized,
differently from Innovation.
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Misunderstandings on Innovation
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High-tech
R&D dependent
Powered by Basic Research only
Capital intensive
Measured by scientific standards, mostly cloned
from industry
Yet related, research and innovation are two
different realities
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Research and Innovation
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Research deals with the creation of new knowledge and involves
very special people. People who hardly pay attention to applying
the knowledge they produce.
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The major goal of research is to produce new and high quality
knowledge. If this knowledge has economic and societal relevance
is not the first concern.
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Innovation is dealing with the application of knowledge, sometimes
already long existing.
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The major goal of innovation is to stimulate the successful
application of knowledge. That’s why policy makers in both
domains operate in different networks, set different goals and use
different instruments.
Knowledge is relevant and connected with innovation
processes. But, efforts to create conditions to produce new
knowledge are quite different compared to conditions
necessary for the application of knowledge.
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Widening the Debate
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One of the most serious consequences of the equalization of
research and innovation is the widespread idea that knowledge
plays a crucial role in innovation processes.
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In real world, things look different. Take an innovative country like
Finland, Norway or the US. The majority of the firms are SME’s.
Most of them do not have an own research capacity. And the
majority hardly knows how to identify and use knowledge relevant
to them.
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These countries do have innovative economies, for the majority of
innovations are not based on new knowledge but on intelligent
combinations of already existing knowledge.
Although government policies must deal with these two
issues, Brazil needs urgently to improve all the environment,
infrastructure and instruments to push forward innovation in
all economic sectors.
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Global Leadership in S&T&I is transitory
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In the 19th century, and at the outset of the 20th century, the
dominant global S&T power was Europe. Since the middle of the
20th century, the dominant global S&T power has been the United
States.
In the 21st century, a new internationally collaborative reality is
emerging since:
 The scientific challenges are more complex in nature and
global in impact
 Scientific research is increasingly international
 Innovation and Technology are developed within a global
framework
Last year, the combined output of emerging economies
accounted for more than half of total world GDP.
The rich countries no longer dominate the global economy.
Emerging economies are driving global growth and having a
big impact on developed countries´ inflation, interest rates,
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wages and
profits.
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Emerging economies have been growing faster than
developed countries for several decades.
What´s Really New?
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Growth rates between emerging and advanced countries has widened.
Emerging economies have become more integrated into the global
production, with trade and capital flows accelerating relative to GDP in
the past 10 years.
By 2007, China is likely to account for 10% of world trade (4% in 2000).
IT made it possible radically to reorganize production across borders.
Over the next decade, almost a billion new consumers will enter the
global marketplace.
As China, India, Russia and Brazil have opened up their economies, the
global labour force has doubled.
Increased vitality in emerging economies is raising global growth, not
substituting for output elsewhere.
Stronger growth in emerging economies has changed the relative returns
to labor and capital (shift in relative prices and incomes: of labor, capital,
commodities, goods)
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World Integration
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As newcomers become more integrated into the global economy and
their incomes tend to catch up with the rich countries, they might provide
the biggest boost to the world economy since the industrial revolution.
 Emerging countries in the world economy:
 Share of world exports: 43% (20% in 1970)
 Consume of energy: more than 50%
 Foreign-exchange reserves: 70%
 GDP (ppp): almost 50%
 Since 2000, world GDP per capita has grown by an average of 3.2% a
year, thanks to the acceleration in emerging economies.
Faster growth will not automatically end third-world poverty
and inequality. That depends on the quality of growth. And on
how the fruits of growth are shared.
No doubt, faster growth will make these goals more
achievable.
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BRICS and Brazil
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Brazil, Russia, China and India are the biggest emergent
countries. China and India are seen as the two giants among
them.
This is true in purchasing-power-parity terms (ppp), but in current
dollars Brazil and Russia both produce more than India. At market
exchange rates, only China and Brazil rank among the world´s top
ten economies.
And Brazil has natural resources, domestic market, basic
research, better institutions, and higher competitive advantage in
energy and biofuels.
Although Brazil is recognized for its competitiveness in more
standardized agricultural and industrial goods, there is a
significant group of Brazilian companies – responsible for more
than 25% of industrial sales – that participates in the international
market through medium to high technological content goods.
Brazil has certain unique traces distinct from
conventional perspectives regarding the specialization
of developing countries in labor-intensive and natural
resource-intensive activities.
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Thank you!
[email protected]
Observatory for Innovation – University of São Paulo
Coordinator, ABDI International Survey:
Strategies to foster Innovation in Seven Countries:
US, Canada, UK, France, Ireland, Finland, and Japan
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