Global Innovation and Sustainability: Innovation insights from Brazil [IAMOT 2014]

Panel: Innovation Insights from Brazil

Global Innovation & sustainability in Brazil

Dr Breno Nunes

[email protected]

Aston Business School, UK

IAMOT Conference, Washington, DC, USA

26 May 2014

OBJECTIVES

• Raise issues on doing innovation in Brazil

• Debate the Brazilian innovation context and its role in globalisation & sustainability

• Discuss the threat & opportunities for Brazil to flourish as global sustainable innovator

Dr Breno Nunes / May 2014 Copyright © 2014 - All rights Reserved

BRAZIL’S INNOVATION ECOSSYSTEM

• STRENGTHS

– Cheap skilled labour > Human capital -> young population

– Good overall respect to IPR

– Increasing number of innovation grants and funds

– Emergence of global champions

– Leading technological development in key areas: Energy, Agriculture & livestock (food security), aerospace (market niche), automotive, Finance, etc

– Good penetration of ICT infrastructure

• WEAKNESSES

– Lack of global awareness (few born-global SMEs)

– Bureaucracy of funding bodies

– Deficient infrastructure & cost of doing business in Brazil

– Shortage of skills in some areas

– Weak institutional environment (infrastructure, legal systems, etc)

– Low productivity across key sectors

– Low “sense of urgency” promotes a number of missing opportunities


Product

• 1st ‘real’ Plane

• Flex-fuel

engines

• Mobile

payments

• Soya for low

lattitude

• Instagram?

Marketing

• Market

niches: small

aircrafts

• Construction

in Africa

Organizational

• Modular

Consortium

Process

• Deep-water

drilling

• Financial

services (IT

processes)

Oslo Manual, 2005

EXAMPLES OF BRAZILIAN INNOVATIONS


The Innovation Race - BRICS

5 Source: Fu et al (2011) Dr Breno Nunes / May 2014

Copyright © 2014 - All rights Reserved

Growth rate of patent applications

6

Trend in patent applications at the top 20 offices

(Source: WIPO Statistics Database, October 2011)


The Innovation Race in 2009

7

Number of triadic patent families per million inhabitants, 2009.

Source: (Guloglu, 2012) Economic determinants of technological progress in

G7 countries: A re-examination. Economics Letters, vol 116, 3, pp604-608


The Innovation Race 2010

8

World Bank, 2010 Apud Fu,2011 Dr Breno Nunes / May 2014

Copyright © 2014 - All rights Reserved

Complex and discrete technologies

9

(Source: WIPO Statistics Database, October 2011)


Knowledge Production and Innovation – BRICS - Ratio between Indicators.

FINDINGS FROM NITEC/UFRGS/BRAZIL (with THANKS to Paulo!)

Brazil Russia India China South Africa

Population / Papers 15,927 10,131 62,308 18,157 17,464

Intelectual Property Revenues / Patents

125,654 32,761 34,159 1,788 100,152

R&D/Patents 3,720,844 527,400 1,490,355 3,186,334 2,889,021

Manufacture Exports / Patents 17,864 3,803 21,139 4,259 59,945

Exports / GDP 11,37% 25,91% 16,45% 23,07% 25,51%

Imports / GDP 11% 16% 25% 21% 32%

BRAZIL’S THREATS & OPPORTUNITIES

• THREATS

– Bad global image/reputation if World Cup & Olympics 2016 go wrong

– Threat of old competitors & the “natural” growth of new competitors like China and India

– New “kids” on the block, unexpected competitors for FDI? Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa

– New disruptive technologies: new generation of ethanol and biofuel from algae

– Abundance (of natural resources, domestic market, etc) as a resource curse

• OPPORTUNITIES

– Global Challenges for food security and energy – the key innovation competences of Brazil in Commodities markets can help to solve them

– Exponential gains by doing the basics as Brazil’s is in its early stages of being a global player

– Creation of a global network of expats

– Western Latin culture & Portugal: front door to Western & European Market? Or a Threat?

– New markets –are the former Portuguese colonies the Brazilian “blue ocean” ? Angola, Mozambique, Cape Verde


Panel: Innovation Insights from Brazil

Global Innovation & sustainability in Brazil

Dr Breno Nunes – [email protected]

Aston University, UK