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A proposal for a Brazilian national innovation strategy

Module 6 assignment of the e-Learning Course “ Introduction to Innovation Policy for Developing Countries ” World Bank. A proposal for a Brazilian national innovation strategy. 23 December 2013 Team members: David Fernández Terreros André de Oliveira Fernandes David Gleiser.

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A proposal for a Brazilian national innovation strategy

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  1. Module 6 assignment of the e-Learning Course “Introduction to Innovation Policy for Developing Countries”World Bank A proposal for a Brazilian national innovation strategy 23 December 2013 Team members: • David Fernández Terreros • André de Oliveira Fernandes • David Gleiser

  2. Context. Introduction • Brazilian economy was stabilized in the mid-1990s under Fernando Henrique Cardoso and accelerated under “Lula” da Silva’s presidency. More than 30 million people were pulled out from poverty. Barely touched by global crisis, Brazil attained in 2010 a history record 7,5% GDP increase. • Currently, the country is facing several challenges mainly due to neglected reforms and inadequate public spending (E.g. pensions versus infrastructures). • Brazil is a country with a huge economic potential, limited more by internal weaknesses than by external threats.

  3. Context. General SWOT ANALYSIS

  4. Context. Specific SWOT analysis of the innovation system

  5. Context. Specific SWOT analysis of the innovation system

  6. The Vision Becoming a global leader in the production of frontier knowledge and medium to high technologies, geared towards enhancing national competitiveness, sustainably exploiting natural resources and reducing social inequalities. Key sectors: In line with the principle of smart specialisation a special focus shall be set on enhancing innovation in 6 sectors: • Agro-business • Cleantech • Smart manufacturing • Extractive industries and new materials • Tourism • ICT.

  7. Key performance problems Insufficient capacity of the education system to generate the skills required for a transition to a knowledge economy. Weak interaction between research institutions and private firms and the isolation of public R&D and higher education from market needs. Low contribution of the private sector to national research efforts and low levels of innovation in the private sector (mostly adaptive innovations). Scarce options for SMEs to finance innovation. Insufficient linkages with international knowledge networks. High degree of of centralization of STI policy and insufficient articulation between federal and local actors.

  8. Entry Points • Ensuring effective roll-out of the education reform in order to: • Increase the quality and raise the standards of primary education. • Increase the market focus of higher education and generate the skills for innovation. • Strengthening the investment climate for innovation: • Services for entrepreneurship support: • Incubators / advisory services: > Increase their scope and efficiency. • > Specific programmes for “Gazelles” & Born Global • Facilitate SME Access to R&D services from Public STI Infrastructures: • Innovation vouchers • Incentives and support for private investment in R&D: • Tax incentives • Grants and competitive grants • Co-investment (public matching funds) • Innovative Public Procurement & Green public procurement

  9. Entry Points (continued) • Enhancing the role of Clusters in innovation policy design and implementation. • Develop a result-oriented approach to public research support, more oriented towards social and economic impact: • Institutionalise PPPs with public research organisations, so as to make them more market-oriented. • Developing, Attracting and Retaining Talent: • Strengthen linkages with international knowledge networks and consortia. • Creating incentives for researchers abroad (Brazilian and others) to contribute in R&D efforts. • Creating incentives for expatriate researchers to return to the country (eg postdoctoral positions in research universities).

  10. Scaling up Entry Points • Engaging the Brazilian diaspora (Business, Scientific & Research) as a point of leverage for innovation support initiatives. • Ensuring continuous monitoring and evaluation of programmes to increase accountability and impact. • Providing scientists/researchers with multidisciplinary & market oriented skills stressing the importance of applied or translational research. • Continuing support based on performance assessment.

  11. Dealing with Vested Interests and ‘Business as Usual’ • How will the strategy be implemented? By whom? • Matrix and multilevel governance model: horizontal and vertical. • Federal and Regional (State) Government & Institutions. • Clusters as catalyzers of Local Stakeholders (Academia, R&D Institutions, Business & Administration). • How to deal with the vested interests resisting the change & avoid ‘business as usual’? • Defining key performance indicators. • Enforcing accountability and conditionalities into the policy support measures. • Providing support on the basis of merit, relevance and performance.

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