Boosting Science and Technology through Industrial Collaboration

1. Boosting Science and Technology through Industrial Collaboration The Brazilian Experience Eduardo Moacyr Krieger President Brazilian Academy of Sciences Tokyo September 14, 2005

2. 1. Capacity building in Science and Technology. 2. International cooperation to translate science into industry.

3. WORLD CONFERENCE ON SCIENCE, 1999 It is today widely recognized that, without adequate higher S&T education and research institutions providing a critical mass of skilled scientists, no country can ensure genuine development. Science for the twenty-first century: a new commitment. UNESCO, 2000, page 472.

4. PUBLICATIONS FROM BRAZIL (1981-2000) WITH AND WITHOUT FOREIGN COLLABORATION 15.000 60 no collaboration collaboration % collaboration 40 10.000 Number of publications % of collaboration 5.000 20 0 0 1983 1985 1987 1989 1993 1995 1997 1999 1981 1991 year Source: National Science Indications, 1981-2000

5. Brazil in 2001: International Collaboration(3.369 articles) Country % United States 39.0 France 13.8 United Kingdom 12.8 Germany 10.7 Italy 7.0 Spain 6.9 Argentina 5.9 Canada 4.8 Russia 4.0 Japan 3.5 Institute for Scientific Information, Science Citation and Social Citation Indexes; CHI Research Inc., Science Indicatiors database; and National Science Foundation, Division of Science Resources Statistics. INFOBRIEF, SCIENCE RESOURCES STATISTICS, August 2004.

6. Citation/publication impact index of Brazilian publications non-collaborative and with foreign collaboration : 4 3,5 3 2,5 1981 1984 1988 2 1992 1996 1998 1,5 1 0,5 0 non-collaborative collaborative Leta and Brito Cruz, 2003

7. To increase S&T career opportunities within the country (to avoid brain-drain): Create special working condition in universities and industry. • Promote innovation in public and private sectors. Multinational companies should create in-house research units to hire local talent. • Recipient countries and international institution should create programs that link these talents with effort to develop S&T capacities back home. • Build ties with expatriated scientists and engineers. InterAcademy Council

8. Brain Drain Foreign graduates in Science and Engineering: • want to stay in the US : 45% (1990) – 72% (1999) • get offers: 32% (1990) – 50% (1999) InterAcademy Council

9. Brain Drain • 27% of doctorate holders in the US labor force are foreign born • Since 1980 S&E jobs grow 4 times as fast as the labor force InterAcademy Council

10. New initiatives can help promote indigenous S&T capacity 1. Attract, develop, and retain young scientists and engineers. 2. Provide S&T education at all levels. 3. Build centers of excellence. 4. Establish virtual networks of excellence. 5. Foster public-private partnerships that involve academia. 6. Strengthen links with expatriate scientists and engineers. 7. Create and maintain digital libraries. 8. Build regional networks of collaboration. 9. Devise novel funding mechanisms. InterAcademy Council

11. 1. Capacity building in Science and Technology. 2. International cooperation to translate science into industry.

12. The Private Sector is Extremely Important • 68% of all funding in the US – up from 32% in 1960 • 75% of actual R&D in the US is executed by Private sector • 63% of Global funding InterAcademy Council

13. WORLD CONFERENCE ON SCIENCE, 1999 Even in those countries that have managed to build up a critical mass of scientists, the private sector gives preference to research with short-term goals or does not invest in research at all; the scientific system is weakly linked to the productive system and local industry does not benefit from the opportunities created by science; as a result, S&T contributes little to the creation of national wealth in these countries. Science for the twenty-first century: a new commitment. UNESCO, 2000, page 471.

14. Patents Granted to Residents(per million population, 1999) InterAcademy Council

17. 2º Prêmio OTC 2001 2000 Roncador 1.877 m 2001 Roncador 1.886 m Petrobras / Deep water exploitation 1º Prêmio OTC 1992 709 m 1977 Enchova 124 m 1979 Bonito 189 m 1983 Piraúna 293 m 1985 Marimbá 383 m 1988 Marimbá 492 m 1992 Marlim 781 m 1994 Marlim 1.027 m 1997 Marlim Sul 1.709 m 1999 Roncador 1.853 m

18. CENPES – Petrobras Research Center Main figures: • 1500 employees: 20% with Master and PhD degree • 122.000 m2 • 950 international patent solicitations up to 2004 • 500 domestic patents • 500 on going projects of R&D Cooperation with > 130 Brazilian universities and research centers  Annual income of 1% of Petrobras gross sales

19. Research Projects with Brazilian Universities • Artificial Intelligence • Off shore technology • Robotic • Catalyse • Biotechnology • Reservoir modelling • Geologic modelling • Well stability • Remedies to soil contamination • Environmental studies • Composite materials • Sedimentation studies • Steam simulator • Anchorage systems

20. Cooperation with foreign universities  Multi clients projects, in a cost shared basis, under the coordination of one of the participants, usually a university.  This partnership aims to follow up the state-of- the-art of pre-competitive new technologies so as to identify potentials partners for future cooperation.  The acquisition of technology by this means is increasing rapidly.

21. Internationalized R&D Ideally, the presence of research-performing foreign affiliates enables the host country to benefit from their technological and organizational capabilities. However, available data indicate that R&D activities abroad consist primarily of design and development to help the parent company to establish a market presence in the host country. The share of foreign affiliates in domestic industrial R&D has some peculiarities: it reflects the contribution of foreign affiliates to industrial activity – the share of foreign affiliates in manufacturing production is high in Ireland and low in Japan. However, it is estimated that one-fifth of R&D growth in the USA between 1996 and 2001 can be attributed to foreign affiliates. InterAcademy Council

22. PERCENTAGE OF R&D PERFORMED BY FOREIGN AFFILIATES IN DIFFERENT DOMESTIC REGIONS EUROPE ~ 30% USA ~ 10% JAPAN ~ 5%

23. Percentage of sales and R&D expenditure of branches of American companies, according to country of operation in the year 2000 Country % sales % R&D R&D expenditures expenditures sales European Union, 66,7% 79,2% 0,94% Canada and Japan Developing Countries Hungary 0,3% 0,2% 0,54% Argentina 1,0% 0,2% 0,15% Brazil 2,5% 1,3% 0,40% Chile 0,4% 0,1% 0,11% Mexico 4,0% 1,5% 0,31% China 1,0% 2,6% 1,95% Korea 0,6% 0,7% 0,86% Malasya 1,0% 1,1% 0,86% Singapore 3,8% 2,8% 0,58% Taiwan 1,0% 0,7% 0,60% Source:: Hiratuka (2003) from the US Bureau of Economic Analysis

24. Main reasons for determining the location of R&D activities for multinational companies Reasons Reasons for the location of for the location of research activities development activities proximity of universities and technologic poles size of local market proximity of informal web market access proximity of innovation centers proximity of clients access to local specialists cooperation with local partners local regulation local support to important clients problem with local patents system process of innovation and adaptation of local production limitation of the domestic science base simultaneous launch of products Source: von Zedtwitz and Gassmann(2002)

25. ENGAGING THE PUBLIC AND PRIVATE SECTORS • Clear legal frameworks promote successful public-private interaction. • Public-private partnerships are critical if S&T is to benefit society. • The international private sector sponsors S&T research that has great potential for addressing challenges in developing nations. InterAcademy Council

26. SECTORAL FUNDS One of the most creative recent ideas is that of : • National sectoral funds in which a percentage of corporate taxes are targeted to funding high quality indigenous Research and Development - R&D in sectors of strategic importance for the country (agriculture, biotechnology, energy and oil, health, informatics, telecommunications and others). Close interaction of the academic community, industry and government is forged in creating, setting priorities and managing the Funds, under the umbrella of the Science and Technology Ministry. InterAcademy Council

27. The international private sector sponsors S&T research that has great potential for addressing challenges in • developing nations • Governments of S&T-proficient as well as S&T-developing countries should focus on licensing issues, accept strong IPR for new medicines, negotiate special agreements on generics for basic pharmaceutical products, promote local industry through partnerships with foreign companies, and amend their current IPR legislation to emphasize the genuine invention of useful technologies while putting less focus on the protection of minor or intermediate technologies and processes, which often discourages further R&D. • Governments of S&T-advanced countries should offer research grants for poor-country diseases, promote global health initiatives, provide tax incentives to major companies that work with developing countries through automatic licensing and other initiatives, and support the extension of the grace period under TRIPS to 2016 for the S&T-lagging countries. InterAcademy Council

28. MAJOR CHALLENGE TO INTERNATIONALIZEST&I, ESPECIALLY IN DEVELOPING COUNTRIES • UNIVERSILIZE SCIENCE EDUCATION FOR ALL LEVELS. • ENLARGEMENT OF THE CAPACITY BUILDING OF PERSONNEL IN ST&I. • DEEPEN THE RELATION BETWEEN UNIVERSITYAND INDUSTRY USING KNOWLEDGE TO BENEFIT OF SOCIAL AND ECONOMIC DEVELOPMENT. • INCREASE THE INVESTIMENT OF ST&I (AT LEAST 1% OF GNP) WITH GREATER PARTICIPATION OF THE PRIVATE SECTOR. • STIMULUS FOR INNOVATION. InterAcademy Council

29. FINALLY: The Academies of Sciences, engineering, medicine and professional associations can be instrumental to improve quality of national S&T programs. In a global scale UNESCO, the International Academy Panel - IAP, the Inter-Academy Council - IAC, the International Council of Science - ICSU and TWAS are important institutions to promote science worldwide and to assure that S&T benefit all humankind.