09/07/2009 às 14:13
Brazil to Invest 1.5% of GDP in Technological Innovation in 2010

BRASILIA, Brazil, July 9 /PRNewswire/ -- The Brazilian government
announced that it expects to invest approximately 1.5 percent of its
Gross Domestic Product (GDP) in advancing science, technology and
innovation in 2010. Based on Brazil's 2008 GDP figures, that would
correspond to R$ 43.3 billion. As part of this investment, private
enterprises are expected to represent 0.65 percent of the GDP.

"We are committed to encouraging and expanding academic and business
partnerships to stimulate regional technological development, increase
business competitiveness and contribute to job creation," said
Guilherme Henrique Pereira, secretary for Technological Development and
Innovation, Ministry of Science and Technology (MCT). "Brazil has both
leading academic institutions, as well as competitive entrepreneurs. We
are working to combine the strengths of both forces to boost research
and innovation activities in strategic areas throughout the country."

One example of the growing importance of innovation in Brazil is that
the state of Santa Catarina established processes for the
implementation of its Innovation Law on June 10, 2009. This new law
allows for a series of incentives for scientific and technological
research intended for innovation, including incentives that are part of
the Program for Support to In-Company Research (Pappe-Subvention).

The Innovation Law was created as a result of meetings with
entrepreneurs, universities, research centers as well as the state
government, and was coordinated by the Foundation for Support of
Scientific and Technological Research in the State of Santa Catarina
(FAPESC). A major achievement of this initiative is the designation of
one percent of the state net revenue to FAPESC and the same percentage
to the Santa Catarina State Enterprise for Agricultural Research and
Rural Extension (EPAGRI).

Eight other federative states have similar legal instruments in place
to promote investments, including Minas Gerais, Mato Grosso, Sao Paulo,
Amazonas, Ceara, Bahia, Rio de Janeiro and Pernambuco.

Brazil has a proven track record of innovation in specific sectors,
such as technology outsourcing, as well as in passing laws that serve
as primary drivers for technology investment. The federal Innovation
Law (Law 10.973/2004) implemented in 2004 supports alliances between
universities and the business community, and provides incentives to
boost innovation and investments for public and private enterprises to
share resources, raise capital and support intellectual property
rights. Secondly, the Positive Law (Law 11.196/2005) implemented in
2005 established a set of fiscal incentives, such as significant
reductions in taxes and contributions for companies that invest in
research, development and innovation (RDI).

"Promoting innovation and expanding investments in the information
technology sector are essential to the development of Brazil," said
Luciano Coutinho, President of the Brazilian Development Bank (BNDES).
"Our institution has a series of programs to contribute to the
development of the IT industry, which are designed to expand the
participation of the private sector in the market, promote exports
growth, foster the growth and internationalization of national
companies of the sector, and strengthen the Brazilian operations of
multinational companies that develop technology in Brazil or use the
country as an export platform."

Support to innovation is a strategic priority for the BNDES. From 2008
to 2010, the bank plans to invest R$ 6 billion in technological
innovation, providing support to all economic sectors by combining
several financial instruments. The BNDES has two financing lines
designed for this aim: Innovative Capital, focused on supporting
companies to develop capabilities to undertake innovative activities;
and Technological Innovation, which supports technology projects aimed
at developing new products or processes. The BNDES also has two funds
to finance innovation: a technology fund, FUNTEC, which has the purpose
of investing in technology institutes, carrying out RDI activities in
areas that are strategic for the country; and CRIATEC, a R$ 100 million
fund focused on the capitalization of seed capital for innovative micro
and small-sized companies. In addition, the BNDES has innovation
support programs aimed at developing specific sectors, namely software
and information technology, digital TV, aeronautics and the
pharmaceutical industry (Prosoft, Protvd, Pro-Aeronautica & Profarma).

BNDES also finances innovation through its BNDES Card, created to
facilitate credit extensions to micro, small and medium-sized
companies. These companies can use the BNDES Card to finance contracts
for research and development services. Among the eligible items for
financing are the acquisition of technology transfer, specialized
technical services in energy efficiency and environmental impact,
design, prototyping, technical responses of high complexity, and the
assessment of product quality and software processes. Over 200,000
cards have been issued so far, adding up to R$ 7 billion in
pre-approved credit for investments.

Other key resources to promote technological innovation in business
include:

-- The First Innovating Company Program (Programa Primeira Empresa
Inovadora - Prime). This program is open to technology-based companies,
not older than two years, to receive funding of up to R$ 120,000, in
order to develop innovative products or services. In 2009, R$ 230
million is available for about 1,900 companies. Currently, the
Financing Body for Research and Projects (FINEP) has contracted 17
anchor-companies to choose the best projects and monitor their
implementation.

-- The Technological Research and Innovation Incentive. This incentive
enables cooperation between technological institutions and businesses.
Currently, 123 National Institutes for Science and Technology (INCTs)
will receive R$ 605 million over the next five years. The focus is on
basic scientific research in projects associated with innovation in
business.

-- The Innovate Project (Programa Inovar/FINEP). This program aims at
promoting the development of micro, small and medium-sized companies
based on technology by designing instruments for their financing and by
helping them to complete the cycle of technological innovation from
research to the market. From 2008 to 2010, FINEP will invest R$ 300
million in over 25 funds of three types of investment: capital venture,
private equity and seed capital funds. The last of which will
capitalize investments in innovative small and micro-sized start-up
businesses.

The Secretariat for Social Communication (SECOM) of the Presidency of
Brazil is responsible for coordinating the Public Relations activities
for the government of Brazil.

SOURCE The Secretariat for Social Communication - SECOM
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MCT e Finep lançam PRIME no dia 03 de dezembro
MCT e FINEP lançam programa para empresas nascentes inovadoras
Empresas pernambucanas se apresentam para investidores no 5º Seed Forum FINEP
Novatas ganham R$ 1,3 bi da Finep

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