Brazil, R&D and the role of clusters

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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