Brazil, R&D and the role of clusters

NCE.
Brazil, R&D and the
role of clusters
Rune Andersen and Rio office

Contents
1. Introduction to the Federative Republic of Brazil ................................................................................. 2
2. Bilateral business and relations between Norway and Brazil ............................................................. 10
3. Doing business in Brazil - cultural preparedness ................................................................................ 13
4. Research and innovation in Brazil ....................................................................................................... 18
5. Innovation and business development infrastructure........................................................................ 22
6. Clusters in Brazil .................................................................................................................................. 28
7. Who is who, shortlist .......................................................................................................................... 39
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1. Introduction to the Federative Republic of Brazil
Brazil is Latin America’s largest market, the world’s fifth most populous country (190,550,000
inhabitants) and the world’s tenth-largest economy in GDP terms. The country has an area of 8.5 million
km2 and has land borders with almost all countries of South America, but Ecuador and Chile. Brazil is a
presidential democracy and for demographic and other statistical purposes, the country is divided in five
regions: North, Northeast, Southeast, South and Center-West Region – being the Southeast Region
responsible for more than 50% of the total GDP of Brazil. Brazil has over the last year grown to become
one of the most important markets for Norway, especially in the Offshore, Maritime, Oil and Gas related
industries. This has lead to a significant increase in the Norwegian activities in Brazil, and thus also
increasing the knowledge about this promising and challenging market.
POLITICAL STRUCTURE
Brazil is a presidential democracy, and a return to military dictatorship similar to that which ruled the
country from 1964 to the mid 80’s is not expected. The Constitution of 1988 is based on division of
power between the executive, legislative and judiciary branches of government, and guarantees
extensive human and social rights. Implementing these rights across social and regional inequalities
remains a great challenge.
Brazil is a Federal Republic, composed of 26 states and one Federal District, where the capital of the
country, Brasilia, is located. Each state has its own constitution, government and judicial organization,
and is led by a directly elected Governor. States maintain a large degree of autonomy and taxation
power; however the Federal Government is prone to participate actively through national economic
initiatives.
Five regions of the Country:
• The North: States of Acre, Rondônia, Amazonas, Pará, Roraima and Amapá;
• The Northeast: States of Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco,
Alagoas, Sergipe, and Bahia, plus the island territory of Fernando de Noronha;
• The Southeast: States of Minas Gerais, Espírito Santo, Rio de Janeiro, and São Paulo;
• The South: States of Paraná, Santa Catarina, and Rio Grande do Sul; and
• The Center-West: States of Goiás, Mato Grosso, Mato Grosso do Sul, Tocantins, and the Federal
District.
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POLITICAL SCENARIO
Presidential elections are held every four years, and the President is restricted to two consecutive fouryear
terms. The President can in extraordinary cases be impeached by Congress through constitutional
measures. The bicameral legislative body, the National Congress (Congresso Nacional), consists of the
Senate (Senado Federal) and the Chamber of Deputies (Camâra de Deputados). The Senate is comprised
of three senators from each state and the Federal District, each serving eight-year terms.
Representation in the Chamber of Deputies is proportional to state population; however restrictions on
the minimum and maximum number of deputies from each state cause heavy overrepresentation of
smaller states. Deputies serve four-year terms, and both senators and deputies can be re-elected
without restriction.
The government of the former president Fernando Henrique Cardoso, who was re-elected in 1998 for an
additional 4-year term, had started a far-reaching reform program in 1995. Their goal was to focus on
the challenging tasks in the areas of public security, education and health, at the same time as fiscal
austerity was maintained to assure a fiscal surplus. Operation and development of the energy,
transportation and telecommunications infrastructures went through a far-reaching privatization
process. His success in achieving a second term in office reflected his ability to maintain popularity on
the domestic front, while remaining the favored leader in the international business community.
However, he faced political and public opposition following his decision in early 1999 to devalue the Real
and since then struggled to hold wayward opposition forces in Congress in check.
In October/2002, the new Brazilian President was elected - Luiz Inácio Lula da Silva. Lula governed for 4
years since January 2003, and a new political party started to run the country – PT (Workers’ Party).
With the massive support of the population, Lula won the elections with an agenda focused on the
social problems of the country. He defended the maintenance of credit lines for Brazilian enterprises
and tranquilized the international market assuring his compromise with the Reforms. President Lula was
re-elected in October of 2006 and still maintains high popularity levels after his presidency.
In 2002, Rousseff joined the committee responsible for the energy policy of presidential candidate Luiz
Inácio Lula da Silva, who after winning the election invited her to become Minister of Energy. In 2005, a
political crisis triggered by a corruption scandal led to the resignation of Chief of Staff José Dirceu.
Rousseff took over the post, remaining in office until March 31, 2010, when she left in order to run for
President. She was elected in a run-off on 31 October 2010. From January 1, 2011, she is the first
female elected President of Brazil, in addition to being the first economist elected for the office.
ECONOMICAL OUTLOOK
Since industrialization in the 1930’s, economic growth has been the overriding goal of Brazilian
governments, both democratic and dictatorial. Policies of varying success have led to periods of high
growth, such as the “Brazilian Miracle” of the 70’s, and others of virtually no growth such as the “Lost
Decade” of the 80’s. Inflation has traditionally remained a constant menace, skyrocketing especially in
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the late 80’s and early 90’s. Combating economic inequality has traditionally taken a back seat, causing
Brazil to remain one of the most unequal societies in the world.
With the Real Plan in 1994, Brazil was finally able to control inflation. A new currency, the Real, was
introduced and originally linked to the value of the Dollar, and new fiscal and interest rate policies were
adopted to prevent further inflationary crises. The stabilization of the economy was followed by a farreaching
privatization process of important state enterprises and the breaking of several traditional
state monopolies. Of special importance to foreign investors, petroleum exploration and production was
opened up to international companies in 1997, after having been monopolized by the state company
Petrobras for almost fifty years.
The important reforms of the 1990’s were carried out under the center-right government of Fernando
Henrique Cardoso. In 2002 after electing President Lula, of the leftist Workers’ Party (PT), it was initially
feared by many that Lula would reverse the market-oriented policies adopted by his predecessor, those
fears have proven to be largely unsubstantiated. Brazil under Lula has maintained austere fiscal policies
and relatively tight inflation targets, and has made significant progress in reducing public debt levels.
The country has been characterized by economic stability since Lula’s election in 2002, though favorable
economic conditions internationally have doubtless contributed to this.
Today, Brazil’s economic outlook is positive with continued low inflation, gradually decreasing interest
rates, and high levels of foreign investment. The overriding challenge remains sustainable growth,
although Brazil is strengthening their economic position. The GDP expansion rates have picked up to an
expected 7,5 % in 2010, after showing a remarkable strength during the financial crisis in 2009.
In part to address the issue of low growth that characterized the election campaign of 2006, Lula’s
government proposed a major public investment program in January 2007, known as the PAC. With
combined government and private sector investments of US$ 263 billion between 2007-2010, the plan is
designed specifically to foster GDP growth rates of 5% annually by investing in infrastructure and
improving investment conditions. The infrastructure investments forecast a total of US$ 31.5 billion
invested in logistics, US$ 92.2 billion invested in social and urban areas, and US$ 148.4 billion invested in
energy. More than half of the total PAC investments are foreseen in the energy sector, with Petrobras
alone accounting for investments of more than $75 billion over the four-year period. Of the investments
in energy, $72 billion are expected in the petroleum sector, $21 billion in natural gas, and approximately
$9 billion in renewable energy.
The significant investments in infrastructure, especially within the energy sector, could translate to
highly attractive opportunities for companies to enter the Brazilian market during this four-year period.
The ambitious plans for expansion guarantee a high demand for energy related industrial products, and
PAC will ensure that funds are available.
According to The Economist Intelligence Unit, the ongoing global financial crisis shall have a negative
impact on Brazil’s economic growth in the first half of the 2009-2013 periods of years. Growth is
forecast to decelerate from an estimated 5.3% in 2008 to 2.7% in 2009, before it recovers to 3.9% in
2010 and further to an annual average of 4,1% in 2011-13. Higher inflation is predicted for 2009 (6.3%)
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declining during the next years to forecast 3.7%. It is assumed that policy continuity will facilitate a
modest recovery with trends in the global economy. Brazil’s reduced external vulnerability should help
the domestic economy to cope with the global economic downturn.
CORRUPTION
Corruption has been a problem among emerging economic giants for a long time across several
industries and points of interaction with the State. Usually, within a specific individual economy, the
intensity of corruption may vary by region, industry and type of interaction with the government, among
other factors.
In a bureaucratic society with low wages for public servants, there is always someone who accepts
something to make things move smoother or close the eyes in case of some wrong-doing. A study done
by the World Bank shows, among a lot of other things in 160 countries, that there is an existence with
strong ties between corruption and low social indexes.
The CPI Score of a country or territory published by Transparency International indicates the degree of
public sector corruption as perceived by business people and country analysts, and ranges between 10
(highly clean) and 0 (highly corrupt).
In 2008, the corruption perception index, ranked countries of interest as following below. Brazil scored
in 2008 a better position than for example India or Russia.
Corruption Perception Index:
Country Rank Country/Territory
CPI Score
2008
Page 5 of 40
Standard
Deviation
Confidence
Intervals
14 Norway 7.9 0.6 7.5 – 8.3 6
72 China 3.6 1.1 3.1 – 4.3 9
80 Brazil 3.5 0.6 3.2 – 4.0 7
85 India 3.4 0.3 3.2 – 3.6 10
147 Russia 2.1 0.6 1.9 – 2.5 8
Source: www.transparency.org
Surveys Used
For Brazil, the costs of corruption are big. One study found that in districts with fewer than 450,000
inhabitants – 90% of the total – a tenth of the money transferred by the Federal Government was
globed up by graft.

There are specific manifestations of corruption. According to the 2003 Global Competitiveness Report
Indices of Bribery and Corruption, there are 18 factors that have a bearing on corruption, such as
distorting government subsidies, efficiency of legal framework and transparency of government
policymaking. Executive Opinion Survey scale goes from 1 (common problem) to 7 (never an issue) and
Brazil scores poorly when it considers Bribery in government policymaking.
The survey indicates that there are differences in perceived corruption form the perspective of small,
medium and large Brazilian companies. The coordinates reflect the percentages of businesses
acknowledging the need to make payments to get things done. Whereas the small and medium sized
companies in Brazil perceive a higher than average burden of corruption, the overall burden of
corruption is higher than problems relating to officials interpretation of regulations and to business
licensing. This suggests that companies face more traps in the operational stage than in the initial start
up phase of running a business. Also, official’s unpredictability only partly explains bribery.
It is interesting to mention that selected industries are also perceived different when it comes to
level/presence of corruption.
Manifestations of Corruption – 18 factors - Brazil: Perceived Corruption and Firms´ Size – Brazil:
Index Code
Index Code:
Bribery and related GCR indices
17
5
1
7
14
3
8
2
12
6
16
15
0 1 2 3 4 5 6
Index Value
1 - Distortive government subsidies 10 - Bribery in public utilities
2 - Judicial independence 11 - Bribery in tax collection
3 - Efficiency of legal framework 12 - Bribery in public contacts
4 - Property rights 13 - Bribery in loan applications
5 - Burden of regulation 14 - Bribery in government policymaking
6 - Transparency of govt. Policymaking 15 - Bribery in judicial decisions
7 - Favouritism in govt. Decisions 16 - Business costs or corruption
8 - Cost of organized crime 17 - Public trust in politicians
9 - Bribery in exports and imports 18 - Ethical behaviour of firms
18
4
9
13
11
10
Source: Executive Opinion Survey in World Economic Forum: The Global competitiveness Report (Oxford
University Press 2003)
Page 6 of 40
Firm size
1
0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8
Percentage of statements re corruption

Corruption in Selected Industries - Brazil:
Industry Code
0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1
Percentage of statements re corruption
Source: Executive Opinion Survey in World Economic Forum: The Global competitiveness Report (Oxford
University Press 2003)
- BUSINESS AND CORRUPTION – PRIVATE SECTOR PERSPECTIVE:
A survey of 78 private firms conducted in 2003 by Transparência Brasil and Kroll included perceptions
and experience about corruption among the Brazilian private sector.
Considering the perception of the participant firms:
- Corruption was ranked in second place (after high levels of taxation), being the second most
serious obstacle to corporate development in Brazil among fourteen other perceived obstacles.
Factors such as inadequate judicial system, unequal income distribution and inadequate
methods of tax collection were perceived as very important with more than 50% of occurrence.
- For 87% of the firms, bribery and nepotism in public procurement were very likely. Areas of
State intervention were unfavourably evaluated. Tax collecting was stated as the most
vulnerable area (83%), while privatization was the least vulnerable area (56%).
When considering experience, the survey also identified how corruption affects the daily routines of
Brazilian companies.
- About 50% of the firms participated or tried to participate in public procurement. Of these, 62%
report having been subject to requests of bribes;
- ¼ of report that requests were connected to licenses;
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- More than 50% report bribery attempts from tax collectors;
- The most vulnerable tax, for 78% of the firms is the ICMS (value added state) and the main
favour corrupt fiscals provide is relaxing ficalizations and inspections;
- Corrupting in procurement, taxes and licenses is seen as indiscriminately serious in the federal,
state and municipal levels.
The trend to institute an internal environment in which corruption is at least formally condemned was
clearly reflected in the survey. 78% of the respondent firms had adopted (in 2003) an internal ethics
code explicitly prohibiting the payment of bribes to public officials. At the same time, however, 21% of
these same firms stated that their managerial policies implicitly recognize the fact of bribery, and hence
that they in some way have to adjust to their business environment.
- BUSINESS AND CORRUPTION –NORWEGIAN PRESENCE IN BRAZIL:
Most Norwegian companies established or operating in Brazil are small or medium sized companies.
Usually the most important sectors of operation of the Norwegian industry are those described by
Transparency International’s Bribe Payers Index 2002 as those most exposed to corruption such as: oil
and gas, power transmission and construction.
According to the CMI Report on Collaboration on Anti-Corruption Norway and Brazil by Tina Søreide and
Claudio Weber Abramo, there are no reported cases of corruption involving Norwegian firms operating
in Brazil. 18 interviews were conducted by Tina Søreide in Aug 2007 in order to identify Norwegian
firm’s perceptions of the business environment in Brazil, what is considered obstacles to business and
how the companies deal with those obstacles.
Results from the survey clarified that although the problem of corruption was a concern for many of the
business people addressed it was not described by them as an everyday burden. The majority of the
executives interviewed did not admit that corruption might be influencing their firm’s market position
and did not think they had lost contracts as a result of such crime. Meaning that this survey contrasts
with the results from the previously mentioned T Brasil/ Kroll survey.
Executives did express their disappointment regarding the different ways of doing business in Norway
and Brazil, due to regulatory framework, market-related matters and culture. Entry into the Brazilian
market was described as challenging, attributing it more to regulation and taxation than to the challenge
of getting contracts. Some statements of the research include: “Brazil is one of the most complicated
markets to get established” – “entry to Brazil is expensive, but promising if things are done right” – “It is
critically important to establish contact with truly professional environments, and not make use of the
first agent who wants to assist you.”.
However, in general the interviewed judged the business environment in Brazil to be rapidly improving
and depicted a very promising market for Norwegian companies.
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- REGULATORY ENVIRONMENT:
Brazil is signatory to all relevant anti-corruption international conventions: OECD Anti-Bribery
Convention since 1997; Inter-American Convention against Corruption from 2002 and United Nations
Convention against Corruption from 2003. And with respect to the formal requirements of these three
Conventions, Brazil is virtually fully compliant.
In addition there are other initiatives to combat corruption: Permanent Working Group on Bribery
Monitoring Reports – Minister of Justice, Public Prosecutor Office and Office of the Controller General
and None-Governmental Organizations.
However, when it comes to public servants, it still seems generally very difficult to punish a corrupt
public servant due to lack of investigation as a consequence of no accusation. The Brazilian legislation is
made in a way as to avoid political harassment and giving ample rights of defence to the accused. In
discovering an irregularity the public institution should form an administrative investigation in order to
bring facts to light. The internal process may take months or years.
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2. Bilateral business and relations between Norway and Brazil
Brazil is Norway’s most important trading partner in Latin America, and after the EU and the US, our
most important destination for investments. The commercial relationship dates back to the early 19th
century, when Norwegian dried cod (bacalhau) was exchanged for Brazilian coffee.
Brazil ranks 19 on the list of Norway’s most important trading partners, notably ahead of Singapore,
South Africa and India. In 2010, total trade amounted to some 2 billion USD, representing a 47 per cent
increase from 2009. In terms of exports, machinery (for the offshore industry) surpassed dried cod as
the most important export group in 2010 (currently accounting for some 29 per cent of total Norwegian
exports to Brazil). Fish and seafood still accounts for 24 per cent of Norwegian exports to Brazil. Given
the combination of a strong Brazilian currency and the general growth in Brazil, the future for
Norwegian dried cod in Brazil looks promising for the years to come. There might also be a potential for
introduction other types of Norwegian fish like herring and salmon. Total imports from Brazil amounted
to 1.04 billion USD in 2010, with inorganic chemicals, metals and foodstuffs representing 75 per cent of
the total value of imported goods.
The number of Norwegian companies in Brazil has increased rapidly in recent years. Currently, close to
100 Norwegian companies operate in Brazil (a 100 per cent increase since 2005!). The majority of the
Norwegian companies established in Brazil are within the offshore sector. Major players include Statoil,
Aker Solution, FMC, Sevan Marine, BW Offshore and Seadrill. Within the maritime sector, there are
around 20 – 25 companies established in Brazil, among them Norskan/DOF, Solstad, Farstad and Siem.
According to the latest statistic, 26 per cent of the specialised ships (like anchor handling, heavy lift and
others for special operations) are on Norwegian hands. The demand for trained and experienced
seafarers and officers, as well as skilled labour in sectors related to oil and gas, is a challenge for all
companies. The navy has monopoly as regards maritime education. The Norwegian Ship Owners’
Association and “Høyskolen in Ålesund” are now joining forces in a project to look for the best solution
in this field.
The relation between Norway and Brazil will also be increased as a result of the Norwegian
Government’s strategy for cooperation between Brazil and Norway.
Maritime Transport Fleet Program
The biggest ship-owner of Latin America, Transpetro, is preparing to sail with a renewed fleet. The Fleet
Modernization and Expansion Program (Promef) is part of the Development Acceleration Program (PAC)
of the Federal Government. 49 new oil tankers will assure greater autonomy and control in the
transport of Petrobras production and can serve as basis for the rebirth of the Brazilian maritime
industry.
Only in the first phase, the Expansion Program will generate more than 20 thousand direct jobs.
Moreover, the Brazilian maritime industry, stagnant since the 80’s, is being reactivated. In the same
way, other sectors of the industry were stimulated, among them, the ship parts, iron, steel and
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metallurgical sectors, which will supply inputs for the construction of the ordered ships. The ships shall
be built in Brazil, with the assurance of a nationalization rate of 65% in Promef I and 70% in Promef II.
There will be a need for more shipyards which will need Norwegian equipment. 8 new yards are
projected on locations along the Brazilian coast, thus reducing the status of Rio de Janeiro as the main
shipbuilding state. The new yards are to be built in the states of Alagoas, Pernambuco, Santa Catarina,
Maranhão, Bahia, Rio Grande do Sul and Céara.
The Brazilian Navy has an ambitious program for construction of patrol-boats to be used for guarding
the platforms offshore the Brazilian coast, including the pre-salt area. The program calls for
construction of; 32 patrol-boats until 2016 in Brazilian yards. 27 patrol boats will be of 500 TDW and 5
destined at tactical actions of 1.800 TDW. The maritime construction sector promises high level of
activity over the coming years.
Besides the investments in the offshore and maritime industries, there is a high level of activity and
business opportunities in other areas as well. In May 2010, Norsk Hydro ASA announced a 4.9 billion
USD purchase of the Brazilian mining giant Vale’s aluminum activities, securing bauxite supplies to last
for a century. This is Norway’s biggest ever foreign acquisition. Hydro is also playing an important role in
promoting the use of solar energy as an important electricity source.
There are Norwegian companies represented in sectors such as biofuels (Umoe), fertilisers (Yara),
forestry (Norske Skog) and banking (DnB NOR).
Trade and investments
Product exports to Brazil represent approximately 0.40% of the total exports. Imports from Brazil
amounts to 1.4% of the total imports.
The bilateral trade relations are going far back in time. Already at the beginning of the 19th century
Norway traded salted cod for Brazilian coffee. Dried and salted cod is still the second most important
export item (23% of total Norwegian exports to Brazil in 2010), but in recent years the supply of
equipment to the offshore and maritime industries have become increasingly important. There has been
a large increase (42%) in trade in 2010 and Norwegian goods exports increased by 82% compared to
2009.
Norway exported services for 5.3 billion to Brazil in 2010. This is the second largest market after the
European Union and the United States.
Norway is also becoming a large investor in Brazil. According to the Brazilian Central Bank, Norway
became investor country number 8 in 2010, investing US$ 1,535 billion. This is a large increase from
being number 25 in 2008 with investments amounting to US$ 207 million. This means that Norway
invested more than traditional partners as Spain, Germany, South Korea and Portugal, a fact that
receives attention.
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Bilateral agreements
Trade development
There has been made several bilateral agreements between Norway and Brazil in the last years, being:
MoU om fiskeri- og oppdrettsamarbeid 2009
MoU om samarbeid innen høyere utdanning 2008
MoU om samarbeid innen miljø (inkl. norsk bistand til Amazonasfondet) 2008
MoU om handel av fisk- og akvakultur/bioprodukter 2003
Dobbeltbeskatningsavtale (FIN ønsker å revidere avtalen) 1980
Avtale om teknisk, økonomisk og industrielt samarbeid 1978
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Exports
Imports
Total

3. Doing business in Brazil - cultural preparedness
Brazil is a mixture of races and as a consequence, a mix of cultures. It has a unique cultural heritage
compared to other cultures. Prof. Geert Hofstede conducted perhaps the most comprehensive study of
how values in the workplace are influenced by culture and five dimensions can be used to analyze Brazil
X Norway. Below, the scores for each country in each dimension:
PDI IDV MAS LTO UAI
BRAZIL 69 38 49 65 76
NORWAY 31 69 8 20 50
The scores indicate substantial differences between Norway and Brazil as can be seen in the graph
below.
Power Distance Index (PDI): focuses on the degree of equality, or inequality, between people in the
country's society. A High Power Distance ranking indicates that inequalities of power and wealth have
been allowed to grow within the society. A Low Power Distance ranking indicates the society de-
Page 13 of 40

emphasizes the differences between citizen's power and wealth. In these societies equality and
opportunity for everyone is stressed.
Individualism (IDV): focuses on the degree the society reinforces individual or collective achievement
and interpersonal relationships. A High Individualism ranking indicates that individuality and individual
rights are paramount within the society. A Low Individualism ranking typifies societies of a more
collectivist nature with close ties between individuals. These cultures reinforce extended families and
collectives where everyone takes responsibility for fellow members of their group.
Masculinity (MAS): focuses on the degree the society reinforces, or does not reinforce, the traditional
masculine work role model of male achievement, control, and power. A High Masculinity ranking
indicates the country experiences a high degree of gender differentiation. In these cultures, males
dominate a significant portion of the society and power structure, with females being controlled by male
domination.
Uncertainty Avoidance Index (UAI): focuses on the level of tolerance for uncertainty and ambiguity
within the society - i.e. unstructured situations. A High Uncertainty Avoidance ranking indicates the
country has a low tolerance for uncertainty and ambiguity. This creates a rule-oriented society that
institutes laws, rules, regulations, and controls in order to reduce the amount of uncertainty.
Long-Term Orientation (LTO): focuses on the degree the society embraces, or does not embrace longterm
devotion to traditional, forward thinking values. High Long-Term Orientation ranking indicates the
country prescribes to the values of long-term commitments and respect for tradition. This is thought to
support a strong work ethic where long-term rewards are expected as a result of today's hard work.
However, business may take longer to develop in this society, particularly for an "outsider". A Low Long-
Term Orientation ranking indicates the country does not reinforce the concept of long-term, traditional
orientation. In this culture, change can occur more rapidly as long-term traditions and commitments do
not become impediments to change.
Brazil is similar to many Latin American countries when analyzing Hofstede's Dimensions. The country's
highest Hosted Dimension is Uncertainty Avoidance (UAI) with 76, indicating the society’s low level of
tolerance for uncertainty. In an effort to minimize or reduce this level of uncertainty, strict rules, laws,
policies, and regulations are adopted and implemented. The ultimate goal of this population is to
control everything in order to eliminate or avoid the unexpected. As a result of this high Uncertainty
Avoidance characteristic, the society is very risk adverse.
Brazil has a slightly higher Individualism (IDV) rank of 38 compared to the average Latin population score
of 21. However, virtually all the Latin countries are considered to be collectivist societies as compared to
individualist cultures. This is manifest in a close long-term commitment to the member 'group', be that a
family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and
over-rides most other societal rules.
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- BUSINESS CULTURE:
It is important to have knowledge about the Brazilian business culture before entering the market. Since
Brazil is a country of almost continental dimensions containing many contrasts and influences from a
number of different cultures, it is difficult to generalize about the Brazilian executives. Regardless of
their differences, they have one thing in common, though: because of the many and sudden changes in
Brazilian economy and economic policies, they will be used to react fast to changes and take quick
decisions. Long-term planning in Brazil is a rather new concept for most people, having been made
possible only after the Real Plan.
- FIRST IMPRESSIONS:
a. Clothing: Correct dressing for a business meeting in Brazil would be a light suit and tie. After office
hours dressing in the city of Rio de Janeiro would be more informal, while in São Paulo your host would
typically wear a suit and tie.
b. Greeting: It comes natural to Brazilians to use the first name of people they meet for the first time.
This is not due to a more relaxed way of being, but often the family names consist of three or four
different names.
Under more formal circumstances, towards a foreigner, the Brazilian will often title him “Mister” before
the first name, but this formality does not last long.
Handshaking is a must; when meeting and when departing, and with everybody present. It is normal for
people of opposite sex to kiss on both cheeks; but it will BE the lady who invites the gentleman to do
this by drawing him towards her. If they are known from before the kissing is automatic.
Do not forget to have sufficient number of business cards!
c. Addressing: When addressing an unknown Brazilian one should use Senhora (Mrs.), if a woman and
Senhor (Mr.), if a man.
d. Body language: Brazilians use their arms and hands during conversation more than Norwegians are
used to. They are also more flexible on the body contact limits, and hugging is common practice
between friends, while kisses on both cheeks are common when greeting women or between women.
- MEETING CULTURE:
A business meeting will usually be initiated with small talk; like how was the trip to Brazil, is this the first
time here, how do you like it etc. To get directly down to business is difficult.
Do not book meetings too far ahead – a couple of weeks; and remember to confirm again 1-3 days
before the meeting. Showing up at an office without appointment is unacceptable in Brazilian business
culture. This is especially true if the person to be visited is a director of higher position.
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Most of the Brazilian executives dislike quick and infrequent visits by foreign sales representatives, and
prefer a more continuous relationship.
One is advised to be well prepared technically for negotiations in Brazil.
The Brazilian secretary may be the foreign businessman’s best friend, and a small gift will see to that the
friendship is established.
The Brazilians expect visitors to be on time, even though they may well be somewhat delayed – traffic is
an often used excuse for the delay; especially in São Paulo. To be somewhat delayed may be a nonverbal
sign of authority.
Always arrive on time for a business meal or meeting at a restaurant. Usually Brazilian business protocol
demands punctuality on these occasions.
- NEGOTIATION TECHNIQUES:
Compared to the western world, the pace of negotiations is slower and to a higher extent than in
Europe and more based on personal contact. The slower pace, however, does not mean that Brazilians
are less knowledgeable in terms of technology or modern business practices.
Business deals are seldom concluded over the phone or by letter, and require personal presence of
company directors.
How to proceed during negotiations depend on the size of the company with which one is negotiating.
The bigger the company, the more international will be the counterpart’s routines. In a smaller company
usually the owner of the company will take the decisions. It is very important to choose a direct and
honest attitude and not try to be arrogant or instructive. In most cases, the counterpart will know just as
much about the subject as the visitor, but may know little or nothing about the product or service he is
being offered.
In Brazil it is of utmost importance to follow up the meetings in order to keep the relation warm. One
should not let it pass more than 2 weeks after the meeting(s). Trust is something that does not come
automatically in Brazil, and by following up, one shows interest and trustworthiness.
Brazilians have a tendency of always marking up the prices in order to be able to eventually give a
discount.
- MANAGEMENT STYLE:
The Management style and decision making depends on the size of the company. A large company or a
multi-national will be following international patterns with planning of activities and clear decision
making channels, although routines may be less rigid and to a certain extent more flexible to fit the
Brazilian environment. The smaller companies are far more flexible in their management structure and
performance.
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- COMMUNICATION:
It is easy to communicate with Brazilians. By nature, they are more communicative than Norwegians and
it is common to initiate a conversation to complete strangers in public places, like in the elevator, on the
bus or airplane etc.
- RELATION BUILDING:
The personal relation is very important for a Brazilian businessman. This is why frequent visits to
Brazilian customers are an investment necessary to increase the possibility of succeeding in Brazil.
Brazilians have a relaxed relation to being precise. If invited to a business-friend’s home for dinner or
party, normally at 20:00-21:00 o’clock, one should not come before that time, because one may run the
risk of meeting the host with a towel wrapped around him.
- THE LINE BETWEEN “CULTURAL ADAPTATION” AND CORRUPTION:
The main challenge for a Norwegian company representative is to create trustworthy relationships
based on personal contact, without crossing the line of corruption. For example, when dealing with a
Brazilian Company, it is not acceptable for a company employee to accept an invitation of a paid trip to
visit the Norwegian company headquarters. But to invite to social events is acceptable and advisable.
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4. Research and innovation in Brazil
The Ministry of Science and Technology ( Ministério da Ciência e Tecnologia, MCT) was created by
Decree No. 91,146 on 15th March 1985, fulfilling the commitment made by President Tancredo Neves to
the Brazilian scientific community. Its sphere of responsibility is set out in Decree No. 5,886 dated 6th
September 2006. As an organ of direct Administration, the MCT’s responsibilities include: national
policy on scientific and technological research and innovation; the planning, coordination, supervision
and control of scientific and technological activities; policies for developing information technology and
automation; national policy on biosecurity; seeing; nuclear policy and control of exports of sensitive
goods and services.
With the incorporation of the two most important agencies for encouraging research in Brazil - the
Financing Body for Studies and Projects (Financiadora de Estudos e Projetos - FINEP) and the National
Council for Scientific and Technological Development (Conselho Nacional de Desenvolvimento Científico
e Tecnológico - CNPq) and their research units - the Ministry of Science and Technology has taken over
the coordination of carrying out programmes and actions to consolidate the National Policy on Science,
Technology and Innovation. The aim of this policy is to turn the sector into a strategic component of
Brazil’s economic and social development, helping to ensure that the benefits of that development are
distributed equitably throughout society.
As well as these agencies for encouraging research, the MCT system also includes the Centre for
Management and Strategic Studies (Centro de Gestão e Estudos Estratégicos - CGEE); the National
Committee for Nuclear Energy Comissão (Nacional de Energia Nuclear - CNEN); the Brazilian Space
Agency (Agência Espacial Brasileira - AEB); 19 research units in the area of science, technology and
innovation, and four state enterprises: Brazilian Nuclear Industries (Indústrias Nucleares Brasileiras -
INB); Nuclebrás Heavy Equipment (Nuclebrás Equipamentos Pesados -Nuclep); Alcântara Cyclone Space
(ACS) and the Centre of Excellence in Advanced Electronic Technology (Centro de Excelência em
Tecnologia Eletrônica Avançada - Ceitec).
By means of this group of institutions, the MCT carries out its strategic functions of developing research
and studies that produced knowledge and new technologies as well as creating Brazilian products,
processes, management and patents.
Structure
To carry out its active role in national development and perform its institutional mission, the MCT has
four teamed secretariats that work under the Executive Secretariat.
Together, they are responsible for the management and execution of the Ministry's main programmes
and actions.
The Secretariat for Research and Development Policies and Programmes (Secretaria de Políticas e
Programas de Pesquisa e Desenvolvimento - SEPED)
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Among other functions, it is the role of this Secretariat to create policies and programmes concentrating
on scientific, technological and innovative development in areas of strategic interest for the increase
and sustainable use of national resources, as well as working in the area of the exact sciences.
The Secretariat for Science and Technology for Social Inclusion (Secretaria de Ciência e Tecnologia para
Inclusão Social (SECIS)
The aim of this Secretariat is to create links between other public bodies and policies which facilitate
economic, social and regional development in Amazonia and the Northeast as well as spreading
appropriate knowledge and technologies in deprived communities in rural and urban areas.
The Secretariat for Technological Development and Innovation (Secretaria de Desenvolvimento
Tecnológico e Inovação - SETEC)
This Secretariat monitors the National Policy for Technological Development, paying special attention to
actions and programmes aimed at technological training within Brazilian business; it also coordinates
studies to help create policies to encourage competitiveness in Brazilian business.
The Secretariat for Information Technology Policy (Secretaria de Política de Informática - SEPIN)
Among other duties, SEPIN has responsibility for carrying out actions in the area of public policy and
national and international projects in the sector of Information Technologies and Communication
(Tecnologias da Informação e Comunicação - TICs), coordinating and monitoring measures necessary for
carrying out the National Policy for Information Technology and Automation, as well as developing
software.
CT&I (Science, Technology & Innovation) Actions
Introduction
The 2007-2010 Action Plan for Science, Technology and Innovation for National Development sets out a
broad range of initiatives, actions and programmes that make the role of Science, Technology and
Innovation (ST&I) more important for sustainable development in Brazil.
The actions and programmes follow the guidelines of the National Policy for Science, Technology and
Innovation, a policy that is led by the Ministry, the central body in the National System for Scientific and
Technological Development.
The Plan follows the spirit of a maxim that should guide all governments: Science, Technology and
Innovation are matters of state and as such should be seen as commitments that are transferred from
one administration to the next.
To give shape to the document that brings together these initiatives, actions and programmes -
involving not only federal-level public research institutions, but also those at state and municipal levels,
as well as the private sector - the guiding principle was the idea that the country enjoys all the
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conditions necessary for creating an ambitious and realistic Development Plan in the area of Science,
Technology and Innovation.
Several of the initiatives included in the Plan are aimed at encouraging businesses to incorporate
research, development and innovation (RD&I) activities in their production processes. The Ministry feels
that more encouragement should be concentrated on cutting-edge areas - nanotechnology and
biotechnology, for example - engineering and areas that are strategic for Brazil's development, such as
space.
The Plan’s priorities are directly linked to the four strategic axes guiding the present national policy on
STI:
• expanding, integrating, modernising and consolidating the National System for Science Technology
and Innovation (Sistema Nacional de Ciência e Tecnologia e Inovação - SNCTI), working in conjunction
with state governments to broaden the nation's scientific and technological base;
• acting decisively to speed up the development of an environment favourable to innovation in
business, and reinforcing the Productive Development Policy (Política de Desenvolvimento Produtivo -
PDP);
• strengthening research and innovation activities in strategic areas related to national sovereignty,
especially energy, aerospace, public safety, national defence and Amazonia, and
• working towards increasing the popularity of science teaching, bringing about greater access to the
goods created by science, and spreading technologies to improve the living conditions of the population.
Today, after various setbacks, the situation we have is that Brazil is going through a phase of maturing
among its scientific and technological communities and that the country is realising how fundamental it
is to invest in innovation to make the most of economic growth.
Institutional Consolidation of the National Science, Technology and Innovation System
Although the National System for Science, Technology in Innovation was set up in the 1970s, and has
expanded greatly in recent years, it has only recently begun to incorporate the basic elements of a policy
for technological innovation.
The System has been strengthened by partnerships with the governments of the states of Brazil and the
Federal District, which have participated in carrying out projects to create its structure. The Ministry has
also called for proposals that include states that have not been reached by means of public calls for
proposals. In this way, some of them have used Programmes such as the Programme to Support
Research in Businesses (PAPPE), the PAPPE and Zero Interest subsidies.
In order to strengthen the System is also necessary to call on the shared management of the state-level
Foundations for Protecting Research (FAPs) and to convince each part of the Federation of the
importance of applying state laws on innovation.
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Other activities included in this programme are: improving the legal situation by the approval and
application of the law regulating the National Fund for Scientific and Technological Development
(FNDCT); improving instruments for managing and encouraging research, and the strengthening of
forums for integrating the policies and initiatives of those acting in the area of S,T&I, emphasising the
revival and reactivation of the National Council for Science and Technology (CCT), as a high-level
advisory instrument for the Federal Government, and also emphasising the construction of a system
that is linked to the business sector.
Partners
As well as Brazilian states, the Programme also includes the following partners: the Ministries of
Education, Health, Defence, Finance, and Development, Industry and Foreign Trade, and Mines and
Energy; the National Council of Secretaries of S,T&I Affairs (CONSECTI), the Brazilian Society for the
Advancement of Science (SPBC), the Brazilian Association of Technological Research Institutes (ABIPTI),
the National Economic and Social Development Bank (BNDES), Petrobras, the National Council of State
Foundations for Protecting Research (CONFAP), the National Confederation of Industry (CNI), the
National Association for Research and Development in Innovating Industries (ANPEI), the Brazilian
Academy of Sciences (ABC) and the Brazilian Support Service for Micro and Small Businesses (SEBRAE).
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5. Innovation and business development infrastructure
There is developed an action plan for 2007-2010 that is focusing on science, technology and innovation
as basis for national development.
The action plan is a set of driving actions and policies for integrating Science, Technology and Innovation
in Brazil. The consolidation of this system recommends its structure with the business sector, states and
municipalities, in view of the strategic areas for the country's development and revitalization and
consolidation of international cooperation. Other important targets in this new context, T & I are:
increasing the number of scholarships for education and training of skilled human resources and
improving the system of promotion for the consolidation of the infrastructure of scientific and
technological research in various areas of knowledge.
The actions taken to increase the technology level in the business sector is collected in the program
PACTI (Programa de Apoio á Capacitição Tecnológica da Indústria, The program for supporting a higher
technology level in industry)
One of the most important aims of PACTI is the improvement and consolidation of Ministry of Science
and Technology incentive schemes through programs and instruments operated by CNPq and Finep.
These should form a co-ordinated and integrated set of programs and means of support to guarantee
conditions for expanding and improving quality in the national system of Science, technology and
Innovation, as well as improving their geographical distribution within the country, improving incentive
programs demands a variety of initiatives and actions that must be widely discussed within the scientific
community.
The main aims to be followed are those of scientific and technological excellence at international level,
vigorous integration of the Science and Technology system with the business system, the improvement
of science education, and more balanced participation of the various regions of Brazil in the effort to
produce a knowledge base.
The Action Plan for Science, Technology and Innovation (PACTI 2007-2010) that was launched in
November, 2007 forms part of the set of plans developed for the second term of the government of
President Luiz Inácio Lula da Silva.
The first of these, presented in January 2007, was the Accelerated Growth Program (Programa de
Aceleração do Crescimento - PAC). This aimed to implement a large number of projects and at the same
time generate and encourage investment in the infrastructure of transport, energy, housing and health
in order to give Brazil the opportunity to broaden and sustain rates of economic growth and social
development in the medium and long terms.
PACTI 2007-2010 was planned as a major element in the initiatives comprising the Government
Program, mobilizing and linking skills and actions across the spectrum of the Federal Government in
cooperation with state and municipal governments. With the use of this instrument, it is hoped to
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provide greater control and coordination for actions needed to develop and strengthen science,
technology and innovation in Brazil. It is connected to other action plans since all of them share the task
of creating, including and using scientific and technological knowledge in order to be carried out.
The aim of these plans is to organize, structure and give visibility to the Federal Government’s actions,
the success of which depends on the contribution of other areas of public power, state and municipal
governments, as well as sectors of civil society, especially the business sector.
The background to the viability of all the action plans is the success of the Federal Government’s
successful policy of economic stability by means of controlling inflation, a balanced budget and public
debt, as well as creating significant international reserves and the economic growth arising from
strengthening the domestic market. The integrated pattern of the various plans is illustrated graphically
in the below figure.
Figure: Integrated pattern of the action plans
To understand the scope of programs for increasing the science, technology and innovation level of the
Brazilian companies, it is important to have in mind the size of the country, the many ministries, the
regional differences and the relation between the Federal Government and the individual autonomy of
the individual states. In relation to the Norwegian reality, the Brazilian status is far more complex and
multifaceted.
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The Action Plan is based on the fundamental principle that, as with investments in tangible goods, those
concerning intangible investments such as research and development (R&D), training, education and
acquisition of technologies, are also of vital importance for social and economic development.
Its main aim is to create conditions for Brazilian businesses to significantly speed up the creation and
adoption of technological innovation so that they can add value to their production and increase
competitiveness. To this end, it focuses on increasing interaction between those working in the system,
aiming both to broaden the national the national scientific base in terms of consolidating excellence in
various areas of knowledge, as well as increasing the technological capacity of Brazilian firms to create,
acquire and turn knowledge into innovations leading to increased value added to their products and
their entry into domestic and international markets.
The main federal government bodies operating in the areas of science and technology are:
MCT: Ministry of science and technology. MEC: Ministry of education. MAPA: Minsitry of agriculture,
livestock and supply. MDIC: Ministry of development, industry and foreign trade. MS: Ministry of health.
MME: Ministry of mining and energy. MD: Ministry of defence. MC: Minstry of communications.
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PACTI prioritize the consolidation of the National System of STI and increased innovation in business. It
consists of four priorities covering 21 lines of action producing 87 programs (with more than 200
subprograms to assist in its management).
The four priorties.
1 Expansion and Consolidation of the National STI System: expanding, integrating, modernising and
consolidating the National System of Science, Technology and Innovation.
A set of driving actions and policies for integrating Science, Technology and Innovation in Brazil. The
consolidation of this system recommends its structure with the business sector, states and
municipalities, in view of the strategic areas for the country's development and revitalization and
consolidation of international cooperation. Other important targets in this new context, T & I are:
increasing the number of scholarships for education and training of skilled human resources and
improving the system of promotion for the consolidation of the infrastructure of scientific and
technological research in various areas of knowledge.
One of the most important aims of PACTI is the improvement and consolidation of Ministry of Science
and Technology incentive schemes through programs and instruments operated by CNPq and FINEP.
These should form a co-ordinated and integrated set of programs and means of support to guarantee
conditions for expanding and improving quality in the national system of Science, Technology and
Innovation, as well as improving their geographical distribution within the country. Improving incentive
programs demands a variety of initiatives and actions that must be widely discussed within the scientific
community
2 Promoting Technological Innovation in Industry
Developing an environment favourable to energising the process of technological innovation in business
with an aim to increasing employment, income and value added at the various stages of production. This
is one of the objectives of this priority that stimulates including more research staff in the productive
sector, spreading a culture of absorbing technical and scientific knowledge, and training human
resources for innovation. Another target is building the Brazilian Technology System (SIBRATEC), the
greatest of which is supporting the development of business, supplying technological services, especially
those concerning Basic Industrial Technology (TIB). There are also actions aimed at increasing the
number of business incubators and industrial zones, as well as enabling the development of innovation
businesses that can manage themselves.
3 RDI in strategic areas: reinforcing research and innovation activities Brazil’s strategic areas.
Opportunities for scientific and technological development are unequally distributed between the areas
of knowledge and sectors of activity. Advanced technology sectors, firmly based in scientific knowledge,
are usually fertile areas generating opportunities to innovate, grow quickly, create high-quality jobs and
have a positive effect on other sectors of the economy, so they are essential for economic growth and
development.
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The strategic areas selected as lines of action for this PACTI priority are:
Biotechnology and Nanotechnology
ICT
Health supplies
Biofuels
Electrical power, hydrogen and renewable energy sources
Oil, gas and coal
Agribusiness
Biodiversity and natural resources
The Amazon and semi-arid region
The weather and climate change
The space programme
National defence and public safety
In this PACTI plan, special attention is paid to certain technology-intensive areas. These are areas that
have sectoral crossover, are multi-disiplanary in the technical and scientific fields and are potentially
very innovative and energising in economic terms and which, together with their significant importance
for the balance of payments, justify their selection.
4 Science and technology for social development, promoting the popularisation and improvement of
science teaching in schools as well as broadening the spread of technologies for inclusion and social
development.
FINANCIAL RESOURCES
The funds given to developing science and technology in general, and in particular to supporting
innovation in business, have been substantially increased in the period 2007-2010, so that the efforts
made in R&D and in other forms of intangible investments will be doubled in the very near future. As
well as the expansion envisaged in the Ministry of Science and Technology’s funds, as shown in the
below figure, it is also planned to increase the amount of other public funds to complement these.
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Figure: Budget for Other Funding and Capital of the Ministry of Science and Technology (MST) Executed
(1998-2006) and Planned (2007-2010), in billions of reais at current value
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6. Clusters in Brazil
Government focus
The Brazilian Government underlines the importance of APL(Arranjos Produtivos Locais) in its industrial
development, the economic development of Brazil, the fight against unemployment, in increasing
competitiveness and improving the trade balance. In this context, Brazil is reviewing its industrial policy
with a focus on increased competitiveness and in local productive arrangements (APL), covering mainly
micro and small enterprises in regional dimensions and realities.
Local Productive Arrangements (LPA'S) are sectorial concentrations of companies and institutions that
are related to each other in a geographical territory, specialized in certain sector or activities that can be
industrial or linked to special products or professions. Those arrangements benefit from an extended
network of relationships. The main point in those concentrations of companies is that the small and
medium sized enterprises are the main responsible for production and for the creation of new work
places.The LPA's are experiencing a considerable development in Brazil. There were 472 LPA's in Brazil
in 2004. In 2007, the number rose to 957, a 102% increase in the period. The LPA's from textile sector
are nearly all over the country, in 21 States. They are 70 and all of them get support from GTP APL, a
group of entities created by the Brazilian Government for that kind of arrangements.
In Norwegian context it is important to go beyond the large numbers and find relevant clusters in Brazil
related to the Nowegian version of the Cluster content. Brazil is creating clusters not only to innovate
and to increase R&D content in companies, but also to stimulate regional development and reduce
unemployment, through local production and education of the local work force.
Prof. Christian Ketels of Harvard Business School has analysed the Brazilian industrial position and made
the following competitiveness profile for 2010 (indicating 5 year changes), rating various factors
important for industrial development from significant advantages to significant disadvantages.
Dr Christian Ketels is a member of the Harvard Business School faculty at the Institute for Strategy and
Competitiveness, where he leads Prof. Michael E. Porter’s research team.
The study shows that with improvements in the social infrastructure and in the political institutions and
public administration, Brazil is already in a strong position and have an even stronger potential.
Therefore has Brazilian strategy on innovation, technology and business development also strong links
to consolidation and co-ordination of federal and state public bodies as well as human development in
schools and universities.
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See below figure to porf. Ketels findings.
Source: Prof. Christian Ketels, Harvard Business School
Page 29 of 40

The technology development system for the industry
The Brazilian system of technology (SIBRATEC), operated by Financiadora de Estudos e Projetos (FINEP),
is an instrument of articulation and approximation of scientific and technological community with
businesses. The purpose is to support the technological development of Brazilian companies giving
conditions for increasing the rate of innovation and thus contribute to increased value-added,
productivity and competitiveness in domestic and foreign markets. The SIBRATEC is organized in the
form of three types of networks called components: centers of innovation, technology services and
Technological extension.
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Centers of innovation (Centros de inovação)
Thematic networks of innovation centres are formed by units or development groups belonging to the
technological research institutes, research centres or universities, with experience in interacting with
companies. These networks aim to generate and transform scientific and technological knowledge into
products, processes and prototypes with commercial viability to promote radical or incremental
innovations.
There are 14 clusters SIBRATEC under the label innovation centers (Centros de Inovação)
Minidictionary:
Manufatura e bens de capital
Microeletrônica
Eletrônica para produtos
Vitivinicultura
Energia solar fotovoltaica
Plásticos e borrachas
Visualização avançada
Bioetanol
Equipamentos médico, hospitalar e odontológico
Insumos para a saúde humana
Tecnologias digitais de informação e comunicação
Nanocosméticos:
capital goods and manufacturing
micro-electronics
electronics
wine products
photovoltaic solar energy
plastics and rubbers
advanced visualization
bioethanol
medical, hospital and dental equipment
human health
digital information and communication technologies
nanocosmetics
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Veículos elétricos:
Insumos para saúde e nutrição animal
Technology services (Serviços Tecnológicos)
electric vehicles
inputs for animal health and nutrition
Thematic networks SIBRATEC of technological services are formed by laboratories and accredited or as
having a quality management system laboratory. This component is intended to support the
infrastructure of calibration services, testing and analysis and conformity assessment, compulsory and
voluntary levels, the training of human resources, the improvement of quality management laboratory
proficiency testing programs, as well as the activities of standardisation and technical regulations, to
meet the needs of access by enterprises to the market.
There are 20 clusters SIBRATEC under the label technology services (Serviços Tecnológicos), with 484
participating laboratories.
Minidictonary:
Produtos para a saúde
Insumos farmacêuticos, medicamentos e cosméticos
Sangue e hemoderivados
Análises físico-químicas e microbio p/ alimentação
Biotecnologia
Saneamento e abastecimento d’água
Radioproteção e dosimetria
Equipamentos de proteção individual
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Health products
pharmaceutical ingredients/inputs, medicines and cosmetics
blood and blood products
physical-chemical analysis and microbiology for food
biotechnology
sanitation and water supply
radioprotection and dosimetry
individual protection equipment

Produtos e dispositivos eletrônicos
TIC aplicáveis às novas mídias: TV Digital, comunicação sem
fio, internet
Geração, transmissão e distribuição de energia
Componentes e produtos da área de defesa e segurança
Biocombustíveis
Produtos de manufatura mecânica
Produtos de setores tradicionais: têxtil, couro e calçados,
madeira e móveis
Instalações prediais e iluminação pública
Monitoramento ambiental
Transformados plásticos
Gravimetria, orientação magnética, intensidade de campo
magnético e compatibilidade eletromagnética
Resíduos e Contaminantes em Alimentos
Technological extension. (Extensão tecnológica)
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Electronic products and devices
ICT applicable to new media: Digital TV, wireless
communication, internet
power generation, transmission, and distribution
components and products of the area of defence and security
biofuels
mechanical manufacturing products
products of traditional sectors: textiles, leather and footwear,
wood and furniture
outdoor lighting
environmental monitoring
Processed plastics
Gravimetry, magnetic orientation, intensity of magnetic field
and electromagnetic compatibility
residues and contaminants in food
The State Networks of Technological Extension congregate entities specialized in technological
extension in the region, through the organization of an institutional arrangement, consisting of local
technical support, financial and managerial, which involved the State Secretariat of C&T or the entity in
the State that has this function, entities representing the economic sectors, Regional Development Bank
(BNDES), Fundação de Amparo à Pesquisa (FAP), SEBRAE, IEL and R&D institutions.
The goal of this component is to promote technological extension to resolve small bottlenecks in
technological management, adaptation of products and processes and the improvement of the
management of the production of micro, small and medium-sized enterprises.
The figure below show the that now are 22 states included in the SIBRATEC technology extension
system. Only four states are not a part of it. The figure also show the complexity of the system when you
include the local state players.

Anprotec
Anprotec has made an analysis and overview of the technology parks. This portfolio of Brazilian
technology parks was developed in the context of the work done by the National Association of Science
Parks and Business Incubators (ANPROTEC, Associação Nacional de Entidades Promotoras de
Empreendimentos Inovadores), over the past five years to organize and strengthen this important
mechanism for promoting innovative environments for the creation of technology companies and other
research and development initiatives. Recently, Anprotec concluded the work "Brazilian technology
parks-study, analysis and propositions", run in partnership with the Brazilian Agency for Industrial
Development (ABDI), and with support from the Ministry of science and technology (MCT), Ministry of
development, industry and foreign trade (MDIC), Financiadora de Estudos e Projetos (FINEP), Banco
Nacional de Desenvolvimento Econômico e Social (BNDES), Center for Strategic Studies and
Management (CGEE) and Brazilian service of support to Micro and small enterprises (SEBRAE). This work
allowed the analysis of various national and international experiences, allowing the generation of a
taxonomic proposal for the area, as well as the forwarding of propositions of elements of public policy
to support Technological Parks in Brazil. Throughout this process it became apparent the importance of
a more up-to-date and accurate survey that contributes to public and private actors can understand the
scale of the challenges and opportunities to consolidate technological parks as relevant instruments for
economic, social and technological developments in the country.
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History of parks in Brazil.
The theme "technology parks" started to be treated in Brazil from the creation of a program of CNPq, in
1984, to support this kind of initiative. The lack of a culture focused on innovation and the low number
of innovative ventures existing at the time they did that the first projects of technological parks had
finished giving birth to the first business incubators in Brazil. This movement grew rapidly and now has
over 400 business incubators across the country, involving more than 6000 innovative companies
generated from incubators, universities and research centers. From 2000 the technology parks returned
to strengthen as an alternative to the promotion of technological, economic and social development,
currently numbers about 60 projects, between initiatives in operation phase, deployment or planning.
Reasons for the increase in the number of projects.
The sharp growth in the number of projects of parks in the country is essentially a set of factors that act
together: strengthening the consciousness of the actors of Government about the importance of
innovation for sustainable development and economic growth of the country; Significant increase in the
number of companies interested in settling in technology parks-businesses generated or graded
incubators, tech multinationals and domestic companies determined to strengthen its units P&D;
successful experience of other countries like Spain, Finland, France, United States, Korea, Taiwan,
among others, who are investing consistently in this mechanism; Need for State and local governments
to identify new strategies to stimulate growth and direct the development of their regions.
Main conclusions about the scenario of technology parks in Brazil.
The study of the situation of technology parks in Brazil was held in the first half of 2007, generating a set
of information of which we highlight:
-55 technology parks were searched within a universe of about 65 existing projects in the country today.
-Of 35 technology parks, 11 are in operation, 13 in the deployment process and 11 in the planning
phase.
-More than 250 technology companies are installed in these parks, generating nearly 5000 jobs.
-The projects studied received public investments of about RS$ 50 million, with 50% of this amount
came from federal government agencies.
-100% of PqTs have incubators or are deploying an incubation programme.
-Among the PqTs surveyed, more than 70% established itself as the main purposes of the Park: Attract
businesses and investment; Support the development of technological areas; Enhance the partnership
between companies and other institutions; Encourage the creation and consolidation of micro and small
enterprises; Facilitating technology transfer and Strengthening the entrepreneurial spirit.
-Business sectors most stimulated by PqTs are: ICT (absolute majority with more than 50%), energy,
biotechnology, electronics and instrumentation, services, environment and agribusiness.
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-Even being able to identify priority sectors, more than 60% of PqTs are considered "generalists" in order
to receive various business segments.
-approximately 80% of companies installed in PqTs originated in the region and are in a start-up or in
consolidation phase.
-on an average, approximately 55% of PqTs still lacks a clearly defined management model for both
consolidated and operation phase as of deployment.
-In general, the leaders of projects have previous experience in the area of promotion of
entrepreneurship and innovation.
Challenges for technology parks in Brazil
The analysis of the results of research on the technology parks in Brazil identified a set of challenges to
be overcome in the coming years:
-Most PqTs lacks a clear strategy for positioning and growth, which makes the definition of a sustainable
business model to leverage the enterprise.
-In General, the projects present strong reliance on public resources for the beginning of the
deployment project and a few private investors or investments.
-Teams of planning, deploying, and operating with little experience in real estate and financial matters.
-There is a great difficulty of effective engagement of academic leaders in projects of technology parks.
-There are obstacles to articulate and coordinate the various initiatives of PqTs in order to avoid a
"bubble of projects", with the proliferation of a large number of projects without basis and few results.
-There are problems for changing the culture of universities to better leverage knowledge assets already
accumulated and investing increasingly in the areas of entrepreneurship and innovation.
- Difficult to tune the deployment strategy of PqTs with regional and national priorities, as well as with
international trends.
- Need to invest significant financial resources to "make a difference" in the global market and, at the
same time, clear rules, with legal certainty, for the intensive attraction of private capital.
- Dependence of a national policy of support for PCTs establishing clearly the role of the various actors:
Federal/Central Government, State/region, Local/Municipal Government, universities, private sector,
the financial system, etc.
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Typical "profile" of technology parks in Brazil
Despite being a relatively recent experience, the movement of technology parks in Brazil already lets
you identify some typical characteristics that configure the base that can consolidate as a "Brazilian"
Model of PqTs:
-The PqTs Brazilians have a close relationship with mechanisms and initiatives promoting innovative
entrepreneurship, especially incubators.
-In general the parks are connected with a formal program of regional planning, constituting an
important part of the strategy of economic and technological development.
-PqTs projects typically have been led by managers of successful programmes in the area of business
incubation, technology transfer, university-enterprise and research and development to the business
sector.
-The physical spaces chosen to deploy the PqTs usually originate from government agencies or
universities.
-Most projects relies heavily on "people" or "groups of people" who are dedicated to coordinate the
initiatives.
-Large State-owned enterprises and technological competence have played an increasingly important
role in leveraging and consolidating PqTs.
-Depending on the character "emergent" technology industry in the country, occupying a space PqTs
come as true physical references of the development process of the Brazilian technological poles.
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Cluster overview
Prof. Ketels of the Harward Business School has investigeted the sectors of clusters in Brazil. This makes
it easier te see any relevant match between Norwegian and Brazilian priorities related to Brazlian cluster
development and Norwegian NCE reality.
Source: Prof. Christian Ketels, Harvard Business School
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7. Who is who, shortlist
ApexBrasil: Their function is to promote exports of Brazilian products and services, contribute to the
internationalization of Brazilian companies and attract foreign investment into Brazil.
BNDES: The Brazilian Development Bank (BNDES) is the main financing agent for development in Brazil.
Since its foundation, in 1952, the BNDES has played a fundamental role in stimulating the expansion of
industry and infrastructure in the country. Over the course of the Bank’s history, its operations have
evolved in accordance with the Brazilian socio-economic challenges, and now they include support for
exports, technological innovation, sustainable socio-environmental development and the modernization
of public administration.
The Bank offers several financial support mechanisms to Brazilian companies of all sizes as well as public
administration entities, enabling investments in all economic sectors. In any supported undertaking,
from the analysis phase up to the monitoring, the BNDES emphasizes three factors it considers strategic:
innovation, local development and socio-environmental development.
CENPES: The Centro de Pesquisas Leopoldo Américo Miguez de Mello known as Cenpes is the unit of
Research Center of Petrobras responsible for research and development (R & D) and basic engineering
of the company. It was formed on 4 December 1963 and aims to provide technological solutions to
anticipate and vision of innovation and sustainability for the company.
CNI: Twenty-seven Industry Federations in the states and Federal District. Over a thousand associated
setorial employers organization and 196 thousand industrial establishments. The CNI is the Voice of
Brazilian Industry, an organization highly active in defense of the productive sector with a mission to
boost Brazilian Industry competitiveness.
CNPq: The National Council for Scientific and Technological Development (CNPq) is an agency linked to
the Ministry of Science and Tecnologia (MCT), dedicated to the promotion of scientific and technological
research and to the formation of human resources for research in the country. Its history is directly
linked to the scientific and technological development of Brazil.
The functional structure of CNPq comprehends an Executive Board of Directors, responsible for the
management of the institution, and a Deliberative Council, responsible for the institution's policies.
In addition to the participation in these bodies, the Brazilian scientific and technological community also
takes part in the management of policies by means of the Thematic and Advising Committees.
FINEP: Financiadora de Estudos e Projetos — FINEP (Research and Projects Financing), also known as
the Brazilian Innovation Agency, is a publicly owned company subordinated to the Ministry of Science
and Technology — MCT. It was founded on July 24, 1967 with the purpose of financing scientific and
technological research and graduate courses in Brazilian universities and research institutions, as well as
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esearch and development in companies. In 1971, FINEP became the Executive Secretary of the newly
created Fundo Nacional de Desenvolvimento Científico e Tecnológico — FNDCT (Funding for Scientific
and Technological Development.
SEBRAE: Sebrae was created to encourage entrepreneurship and sustainable development of
enterprises of small and micro enterprises in Brazil. It is a non-profit private entity created in 1972 and
has as mission to promote competitiveness and sustainable development of small and micro
enterprises. Also works with focus on strengthening entrepreneurship and in speeding up the process of
formalization of the economy through partnerships with the public and private sectors, training
programs, access to credit and innovation, stimulating clustering, fairs and business conferences.
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