Transcript Brazil:institutional building for innovation-based

New Economic Thinking, Teaching and Policy Perspectives:
A Brazilian Perspective within a Global Dialogue
Brazil:
institutional building for
innovation-based development
Glauco Arbix
Finep
Shaping Financial Institutions for Innovation and Development
Ford Foundation, Minds, BNDES, Banco de Desarrollo de América Latina
Rio de Janeiro, November 8th 2011
Growth
What is really new?
Inequality
Poverty
reduction
reduction
The Brazilian Economic Growth
Average rates – Real GDP – 1901/2010
Primary Product Export Economy
9,5
9,0
8,5
8,0
7,5
7,0
6,5
6,0
5,5
5,0
4,5
4,0
3,5
3,0
Import Substituting Industrialization
Lost decades
8,63
7,01
Average
4,65%
4,23
4,24
4,52
Average
3,98%
6,17
5,90
Average
2,10%
Average
7,26%
4,39
3,98
2,41
2,5
2,0
1,5
1,0
1,52
1901/10
Source: IBGE
1911/20
1921/30
1931/40
1941/50
1951/60
1961/70
1971/80
1981/90
1991/02
2003/10
Brazil: Inequality reached the lowest level
Gráfico 2.2a: Evolução da desigualdade
na renda familiar
per
in
30
years
capita no Brasil: Coeficiente de Gini (1977-2007)
(Gini Index – 1977-2010)
0,640
0,630
0,634
0,623
0,620
0,612
Gini
de Gini
Coeficiente
0,615
0,610
0,600
Valor médio do
0,602
0,604
0,594
0,593
0,590
0,596
0,599
0,600 0,600
0,599
0,588
0,582
0,593
0,598
0,589
0,580
Average
Average
Gini
coeficienteGini
de
Gini
0,587
0,592
0,587
0,581
0,580
0,570
0,569
Valor mínimo do coeficiente de Gini
Lowest Gini Index
0,560
0,566
0,559
0,552
0,550
0,520
1977
1979
1981
Source: PNAD – IBGE – 1977-2008
Source: IBGE, 2010.. *Esimate
1983
1985
1987
1989
1991
1993
Anos
1995
1997
1999
2001
2003
2005
0.52
2010
2007
Different quality of economic growth
 Brazil is reducing poverty and inequality, and
expanding innovative social safety networks.
 And its government is playing a more active
role in the making of overall policies oriented
towards investment, innovation and
competitiveness.
Unique Combination
Growth + Job creation + Social policies +
Minimum wage + Low inflation
There is a new state activism…
 State action is more market-adjusting than marketdominating.
 Since 2003 there is an unprecedented expansion of
social benefits targeted at the poorest citizens.
…that differs from its dirigist predecessor
The idea of building a national development plan gained momentum
 2007: Growth Acceleration Program (PAC)
 2007: National Plan for S&T
 2008: National Plan for Education
Industrial policy is back again, focused on innovation
 2004: Industrial, Technological and Foreign Trade Policy (PITCE)
 2008: Productive Development Policy (PDP)
 2011: Brazil Maior Plan
Brazilian S&T policy is gradually shifting towards the economy,
keeping its focus on enterprises
Fostering innovation in enterprises is one of
S&T National Plan four priorities
1. Expansion of the National System of S,T&I
2. Promote innovation in enterprises
3. R&D in strategic areas
4. S&T&I for social development
Key issue to be resolved:
Innovation and Technology have been
conceived as byproducts of economic growth
rather than requirements for it.
Legacy
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1940 - 1980: Development through economic growth

1990s: Development through liberalization

2000…: Efforts aim to overcome S&T policy which has never
been an engine of growth. Innovation is at center stage.
Recovering stateness:
Public policies have to deal with three categories of institutions
1. Transformative: dismantling and leading to points of no return.
2.
Corrective: by reorienting and adapting missions.
3.
Constructive: building new institutions.
Dismantling, Adapting, Constructing
1. It started with the dismantling of developmental state
institutions (most state-owned companies, ISI, and closed
economy).
2. Institutions have been reoriented toward new missions
(MCTI, MDS, BNDES, FINEP and state owned banks).
3. Institutions have been created.
New Policies, Tools and Institutions (2003-2011)
1990s
Innovation Policies
None
New Regulatory Rules
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Competition Protection Law (1994)
New Institutions
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Regulatory Agencies(9)
Sectoral Funds (14) - CGEE
Privatization, Exports
Pronex
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New Automotive Regime
Informatics Law
BNDES & FINEP
main targets
New Sectoral Tools
2003-2011
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PITCE – 2004
PAC - 2007
PDP – 2008
S&T Plan – 2007-2011
Brazil Maior Plan
Innovation Law (2004)
Lei do Bem, 2005d
Biotechnology security law (2005)
Computer and Software Tech Law
ABDIe
CNDI and CNDESf
Venture Capital
Economic Subvencion
Inova Brazil
Business Entrepreneurship Fund
Pro-Innovation
Firms Internationalization Program
INCT - National Institutes for S&T (126)
Prominp (Petrobras)
ProSoft (enlarged)
Pro-Pharmaceuticals
Sibratec – National Technology Networks
What does this shift mean for the role of
the Brazilian institutions?
The pathway towards a more market and innovationfriendly economy is prepared with more state
intervention.
Finep

Is transforming itself into a Financial institution, in order to provide:
more credit + economic subvention + and to manage a
variety of investment in tech-funds (seed & venture K)

Is supporting a new enterprise social network to foster companies
cooperation
To pave the road to a more knowledge-intensive based economy
Finep Priorities
AEROSPACIAL
DEFENCE
HIGH
ENERGY
TECH
PHARMACEUTICALS
GREEN TECHNOLOGIES
ICTs
INFRASTRUCTURE
Rio + 20: Green Economy Knowledge Fair
Showcase of innovation in green technologies and
sustainable development practices
Finep: Rio + 20
US$ 1,5 bi: “Brasil Sustentável” Program (2012-15)
 biomass & renewable energy
 smart grids
 climate change
 urban mobility, materials and construction
 solid waste
 biodiversity & Amazon
 social technologies
Growth
Inequality
Poverty
Reduction
Reduction
Education
Innovation
Thank you
Glauco Arbix
[email protected]