1. 1 The Brazilian Innovation System and 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 Gl ó ria Rio de Janeiro 27 de abril de 2007

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

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

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

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

6. 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. 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. 8 Demand Income distribution Structure of consumption Social organization Social demand (basic infra-structure, health, education)

9. 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. 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. 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. 12 From a S&T&I point of view the model was based on a: 1.Rapidly up-grading of the scientific infra-structure 2.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. 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