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The Brazilian Innovation System and the BRICS project

This paper examines the evolution of the Brazilian Innovation System (NIS) from the 1950s to the present, highlighting challenges and opportunities within the context of the BRICS project. It analyzes the narrow and broad versions of the NIS, including the production and innovation subsystem, capacity-building and research services subsystem, as well as policies, representation, and financing subsystem. The specificities of the BRICS countries, such as regional differences and heterogeneity of production systems, are also discussed. The paper concludes with an assessment of the Brazilian NIS in the 1990s and early 2000s, including remarkable successes and challenges faced.

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The Brazilian Innovation System and the BRICS project

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  1. The Brazilian Innovation Systemand the BRICS project José E Cassiolato, Márcia Rapini & Priscila Koeller RedeSist - www.redesist.ie.ufrj.br II International Workshop of the BRICS Project Comparative Study of the National Innovation Systems of Brazil, Russia, India, China and South Africa Glória Rio de Janeiro 27 de abril de 2007

  2. NIS: The Narrow Version Narrow Very Narrow Firms Demand S&T infrastructure S&T&I Policy

  3. NIS: the Broad Version Geo-Political, Social, Political, Economic, Cultural & Local Context Wide Narrow Very Narrow Subsystem Production/Innovation Demand (segmented) Subsystem Capacity-Building, Research & Technology Services Subsystem Policy, Promotion, Representation & Financing

  4. Geo-Political, Social, Political, Economic, Cultural & Local Context • Geo-political context • History matters • Social, Political & Economic context • Cultural aspects • Regional & local characteristics

  5. Sub-System: Production & Inovation • Structure of economic activities • Sectoral distribution • Spatial distribution • Employment • Size • Informality • Innovative effort

  6. Sub-System: Capacity-building, Research & Technological Services • Education (basic, technical & graduation) • Pos-graduation • R & D • Training & Capacity-building • S&T Information • Metrology • Consulting • Intellectual Property

  7. Sub-System: Policies, Representation & Financing • Explicit policies (S&T&I, industrial, sectoral) • Implicit policies (macroeconomic, investment, trade, etc.) • Regulation (sectoral, foreign trade, intelectual property, environment, innovation) • Promotion • Financing • Representation

  8. Demand • Income distribution • Structure of consumption • Social organization • Social demand (basic infra-structure, health, education)

  9. Specificities of BRICS • Wide variation of production structures • heterogeneity of production systems • heterogeneity of demand • Wide regional differences • The importance of • history, culture • mode of insertion in globalization • In the IS framework what is really important is the systemic character of production & innovation • In the context of BRICS there is a need to analyze local innovation and production systems (LIPSs) • RedeSist’s experience in analyzing LIPSs

  10. The Evolution of the Brazilian NIS • The Brazilian NIS up to ISI • The Brazilian NIS from the 1950s to the mid 1980s • Setting up of policies, agencies and infra-structure • Successes in some sectoral innovation systems • The Brazilian NIS from the late 1980s up to now • Changes in the policy regime • Mixed results • Downgrading of some innovation systems • Improvements in some areas • Challenges • Brazil and the BRICS project • complexity of analysing NIS of Brics

  11. Up to ISI • Sugar cane in colonial period • Universities only in the 20th Century • Specialization in coffee and sugar cane • Health (Oswaldo Cruz Foundation) • From the 50s to the 70s – ISI transformed the BIS • 50s - CNPq, Petrobrás and Airspace (CTA) • 60s – Funtec – FNDCT and FINEP (funding the infrastructure) • 70s – Embrapa, Energy, Telecom and IT • But reliance on foreign technology led to mixed results

  12. From a S&T&I point of view the model was based on a: • Rapidly up-grading of the scientific infra-structure • Massive (and disorganized) import of technology (and capital): attracting foreign capital was supposed to be a quick and easier way to channel modern technology into the economy Important successes: • EMBRAPA & agro-industrial technology • strategic sectors: infrastructure, air space, oil, energy and telecom Frustrated attempts: • auto industry (Fábrica Nacional de Motores created in the late 1950s)

  13. The Brazilian NIS in 1990s and early 2000s 1 – Crisis: development process subjected to an exchange-based economic system 3 – Structural changes (deregulation, privatization, internationalization) 3 - Downgrading of some innovation systems: disorganized privatization of infrastructure (particularly telecom) 4 – Some remarkable successes agro-industrial systems (the role of EMBRAPA) aircraft system (EMBRAER) oil extraction and refining (Petrobrás) services: banking automation, voting system 5 – Evolution of infrastructure 6 – Macro policy environment 7 – Challenges: analytical and normative

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