TAFTIE
Taftie Policy Forum
Fernando de Nielander Ribeiro
FINEP – Innovation and Research
November 25 / 26
th
2014
Brazil: Country profile
Total area:
Population (2013):
GDP (2013):
S&T&I Investments (2010) :
8.5 million sq. km
202 million
US$ 2.22 trillion
1.2% GDP
Energy Production:
45.3% from renewable
sources (world 13%)
Natural Resources:
Industry:
diversified base
diversified base
Sources: (04/02/2014) Sites: IBGE, IPEA, Banco Central, MCTI
Promote Innovation to Raise Productivity and
Competitiveness
 Strong development of scientific activity
 Important evolution on numbers of Masters & PhDs.
 New policies and institutions dedicated to science and innovation.
 Innovation policy is part of the social and economic agenda.
 However, companies are not clearly in the spotlight and technology development
is weak.
 Investment in technology is still low and there are only a few innovative
companies.
 Dialogue between Universities and Enterprises is still difficult.
 There is a lack of human resources, particularly, in engineering.
 Poor seed and venture capital market
Technological
Mastery
Brazil
ToA
speed
up the transition to more knowledge intensive economy,
FINEP
Brazil needs to grow faster in S, T & I
3.Established
connections. Main
determinant of
growth is the
scientific and
technological
capacity
Scientific areas
1. Small scientific
infrastructure unable to
feed technology producing
2. Science can determine part of the
technology production but does not
generate effect on scientific production
Source: Ipea/Cedeplar, 2009
Brazilian Science, Technology and Innovation System
PRESIDENCY
OF THE REPUBLIC
S&T Council
______________________________
ENVIRONMENT
COMUNICATIONS
Ministries ______________________________
DEFENSE
EDUCATION
LABOR &
EMPLOYMENT
HEALTH
SCIENCE,
TECHNOLOGY
AND
INNOVATION
DEVELOPMENT,
INDUSTRY AND
TRADE
MINING AND
ENERGY
PLANNING,
BUDGET AND
______________________________ Ministries ______________________________
MANAGEMENT
FINANCE
CULTURE
Other Ministries (Departments) – total
24 + Secretaries and Councils
Agencies
FINEP | CNPq | CGEE | AEB | CNEN
PROGRAMS AND FINANCIAL SUPPORT
RESEARCH AND
TECHNOLOGY
ORGANIZATIONS
5
SOCIAL
ORGANIZATIONS
FOREIGN
RELATIONS
COMPANIES
UNIVERSITIES
Finep - Innovation and Research
Finep is a government owned
company, linked to the Ministry
of Science, Technology and
Innovation
Stablished in 1967
740 employees
US$ 5 billion budget
Offices: Rio de Janeiro (head
office), São Paulo and Brasília
Finep
Mission
To promote Brazilian economic and social
development through governmental
funding of Science, Technology and
Innovation in companies, universities,
technological institutes and other public
or private institutions.
Finep - to act in the whole process of
innovation, focusing on strategic and
structural actions aiming the sustainable
development of Brazil.
Objectives:
 To improve scientific infrastructure
 To encourage and support high standard scientific research
 To encourage the implementation of ongoing S, T & I
activities in universities, R&D institutions and companies
 To reverse the domestic weakness in technology-intensive
segments
 To increase the productivity and competitiveness of Brazilian
companies
 To support the entry of innovative companies into global
markets
 To stimulate private investments in innovation
Finep – Priorities
Support for:
Defense and Aerospace
Oil & Gas and Marine
Research Infrastructure, Tech. Services and Innovative Environment
Information and Communication Technologies (ICTs)
Health
Clean Tech
Renewable Energies
Social Development and Assistive Technologies
Finep´s annual budget growth
US$ billion
FINEP ANNUAL BUDGET (US$)*
6.00
5.00
5.00
4.00
3.20
3.00
2.00
1.26
1.00
1.37
1.67
0.57
1.09
0.76
-
2007
2008
2009
2010
2011
2012
2013
2014**
* Grants+ Loans + Subvention
** Expected Amount
FINEP - Disbursement 2001 – 2013
(2014 = US$ 2 billion)
5,000
Grants for research institutions
4,500
Average Total
Disbursement
2011 – 2013
R$ 4.065 million
Grants for companies
Loans for companies
4,000
3,500
1,459
3,000
2,522
974
2,000
2,500
1,863
1,173
483
2,000
1,500
1,000
575
Average Total
Disbursement
2001 – 2003
R$ 1.064 million
498
246
62
872
701
934
1,059
2003
2004
242
1,639
1,622
2012
2013
2,040
1,701
1,233
243
289
798
227
500
278
117
252
207
637
1,764
1,632
1,422
1,077
0
2001
2002
2005
2006
2007
2008
2009
2010
2011
FINEP
Financial Support to Foster Science and Innovation
Support different S,T&I activities: from basic research in universities
to products, services and processes development in companies.
Loans for companies
•Negative interest rates
•Up to 12 years payback period
Grants for research organizations
•
•Up to 4 year grace period
•Leveraging: up to 90%
Grants for companies
•To companies to develop high risk
technology projects
To public and private research
institutes and Universities through
public selection
Investment in Funds and Equity
•
Equity, Venture and Seed Capital to
support creation and growth of hightech companies
Loans for Companies
Loans for companies
(US$ billion)
6
5.2
5
US$ 5,2 billion in 2013-2014:
4 x 2009-2010
4
3
52% of contracts
2009-2010 to 2013-2014
1.88
2
1.24
1
0
2009-2010
2011-2012
2013-2014
62% new clients (2013-2014)
Grants – Research Infrastructure
Expand and modernize research infrastructure in universities
and research institutes in Brazil
Period: 2007 a 2013
Quantity
Calls for proposals
Proposals
Financed projects
9
1.153
Amount
(USD million)
840,0
2.407,7
719
839,8
Construction
399.576 m²
255,9
Equipments
7.135
401,6
Grants - Innovative Environment
Technology parks and incubators program
Promote habitats to support innovation and knowledge intensive
business
• Call for projects (2010): 12 projects / USD 26 million
•
• Call for projects (2013): 16 projects / USD 44 million
• TOTAL: 28 projects / USD 70 million
Investment
Stimulate the creation and development of innovation based
business and help them gain access to capital.
Actions:
• Identify and develop entrepreneurs and support them in approaching
with investors (Seed Forum, Venture Forum and Forum Brasil: 42 editions / 377 participants /
77 invested companies)
• Select and invest in Seed Capital, Venture Capital and Private Equity
Funds focused on innovative companies
• Equity for high tech companies
Investment - Funds
Focused on Venture Capital, Private Equity and Seed
Capital Funds
• 281 Received Proposals
• 132 GP’s
• 126 performed due diligences
• 29 Funds: USD 208 million committed Finep
USD 4,4 billion Fund Capital
•120 Invested Companies
• 18 investors take part on program board
• 12 observers in the last call
8,4 x
Equity - Investment in Companies
• Focus: Stimulate business growth by investing in
technological innovation projects in companies that have
condition to achieve leadership positions in their markets
• Capital:
USD 200 million
• National coverage
• Sectors:
ICT, Health, Biotech, ...
• 2014:
2 invested companies
Inova Empresa Plan
Focus: to increase R&D in
companies
Encourage high technological risk
projects
Inova
Empresa Plan
Negative
Interest rates
Integration of tools: Loans +
Subvention + Grants + Equity
Inova Empresa
Programs
Using public procurement
Inova Drugs
Fostering innovation in SMEs
Decentralization
Simplify and reduce burocracy
Finep-30Days
Inova Empresa Plan - Priorities
Energy – Oil&Gas – Biofuels /Chem. – ICTs – Health – Agro – Space – Social Tech – Clean Tech
Inova Energy
Inova Agro
Inova Space
Inova Petro
Inova Sustainability
Inova Ethanol
Inova Telecom
Inova Health
INFRASTRUCTURE
TECH. SERVICES
Inova Empresa Plan – High Quality Projects
Inova Empresa Plan
US$15 billion
budget
2013/2014
Demand
US$39,5
billion
• 2.787 companies
• 238 research centers
• 12 ministries and agencies
Credit – 9.5 bi
Subvention – 0.54 bi
Grants – 1.9 bi
Equity – 1.0 bi
US$ 11,7 billion
signed so far
Clean Energy and Green Economy Programs
Encourages research activities,
development, engineering, technology
absorption, production and marketing
of products and processes for
innovative services in the field of
energy.
Supports innovations that induce
sustainability in Brazil, such as
technologies and solutions for
sustainable production, recovery of
biomes and also supports initiatives for
sustainable productive forest-based
activities, environmental sanitation and
disaster prevention.
FINEP – Management Efficiency
What is it?
www.finep.gov.br/30dias
An innovative methodology that reduces time and
increases the transparency and quality of
project analysis. Finep reduced to a 30 day period
the merit analysis and classification of funding
proposals.
Objective:
To raise the technological status of the national industrial
park in order to make it possible to face the prevailing challenges
in domestic and international markets.
National Plan for
ST&I Platforms
Raising the level and the
impact of Brazilian ST&I
ST&I Platforms Attributes
US$ 11 b / 10 years
Connecting intelligence
Attracting high level researchers from abroad
Public funding for 10 years
High standards to guide evaluation
Oriented to results
Special regime for procurement and hiring people
FINEP - International Cooperation
Knowledge and innovation
increasingly interconnected
across organizations in different
countries
Competition takes place in the
world market
…to shorten technological
development’s process
…to provide a reliable environment
for business partnership
…to encourage the sharing of
research infrastructure
Global solutions for global issues
Knowledge and infrastructure
may be complementary
an enabling environment for
companies to gather
Finep – International Cooperation
FINLAND
Selecting countries
SWEDEN
SPAIN
• convergent strategic areas
with Brazil
• cooperation oriented
• important innovation players
UNITED KINGDOM
NORWAY
FRANCE
Measuring Innovation
• Measuring innovation = effectiviness of public policies / organization of
new policies and plans / transparency and information to society.
• Brazil economic = develop public policies for fostering innovation.
• After 2000 - Measuring the effort on technological innovation / statistics
every three years.
• Focus on R&D expenditure, R&D dynamic and strategy within firms,
factors that influence the innovative behavior of firms, incentives,
barriers and outcomes of innovation.
• Relevant growth on the amount of innovative firms (2000 – 2011)
• Innovative firms: higher output, productivity and salary, better skilled
workers, export more and are able to compete world wide.
• Reported factors that obstruct firms innovation: high risk and cost, rigid
firm organization, lack of skilled personnal, short technology and market
data, low opportunities for open innovation, standard rules, low
consumers perception to innovative products, lack of technical services.
Thank you
Fernando de Nielander Ribeiro
fribeiro@finep.gov.br