The EmbassyPolicy
MINISTRY OF SCIENCE AND TECHNOLOGY
Science, Technology and Innovation for Brazil’s Development
Investing and Innovating to Grow
2007-2010 Action Plan
EXECUTIVE SUMMARY
Introduction
BaseScience, technology and innovation are issues of state, which transcend governments, and must be dealt with as commitments that are transferred from one administration to the next. For their own nature, public policies in these areas are carried out by several ministries. In order to coordinate and unify these actions, the government arranges for the preparation of plans to harmonize the various action programs, indicating the mechanisms for carrying them out and providing guidelines to be followed.
The first of these initiatives dates back to 1975, when the Brazilian federal government created the National System of Scientific and Technological Development. Entities that used government funds to conduct scientific and technological research began to be organized under a nationwide system. Next, there were the Basic Plans for Scientific and Technological Development, managed the National Council for Scientific and Technological Development (CNPq). This institutional structure continued until 1985, when the Ministry of Science and Technology was created as the central body in the science and technology (S&T) federal system. The National Council for Science and Technology, in turn, is responsible for harmonizing the policies of the various ministries that also work in these areas. The Council is presided by the Brazilian President and its role has been strengthened during President Luiz Inácio Lula da Silva’s administration.
The S&T system has diversified and the concept of innovation has been increasingly inserted in the business sector agenda and in federal and state governments’ policies to foster research. This new outlook is characterized by greater maturity in the science and technology community, by a growing awareness of the need to invest in innovation, on the part of the business community, and, primarily, by an economy that is undergoing a period of stability and sustainable growth. Brazil, therefore, has all of the necessary conditions to prepare a development plan that is both ambitious and realist.
Consistent with the federal Government, which has already prepared its Growth Acceleration Plan, the Ministry of Science and Technology hereby introduces its Action Plan for 2007-2010 to the scientific, technological and business communities and to Brazilian society.
The main goal of the plan is to establish a wide range of initiatives, actions and programs that will enable science, technology and innovation (S,T&I) to play a more decisive role in the sustainable development of Brazil. Several of the planned initiatives are aimed at encouraging companies to include research, development and innovation (R,D&I) activities in their production processes. Support for science and technology research has increased in all subject areas, however greater incentives have been given to cutting edge research, engineering and other areas that are strategic for Brazil’s development.
The plan priorities are directly linked to the four strategic focus areas that guide the current National S,T&I Policy:
* Expanding, integrating, updating and consolidating the National System of Science, Technology and Innovation (SNCTI), working in coordination with state governments to expand the national science and technology base;
* Working decisively to accelerate the development of a favorable environment to innovation at companies, strengthening the Industrial, Technological and Trade Policy (PITCE);
* Strengthening research and innovation activities in areas that are strategic for Brazil’s sovereignty, particularly energy, air and space, public safety, national security, and the Amazon; and
* Increasing awareness of science education and providing universal access to goods created by science, spreading the use of technology to improve the life standard of the people.
For its broadness, this bold plan will receive funding from other sources, in addition to the Ministry of Science and Technology and its agencies. Joint initiatives will be strengthened with other ministries, states, municipalities and the private sector, relying on participation from other governmental entities, such the Brazilian National Bank for Social and Economic Development (BNDES) and the Brazilian Petroleum Company (Petrobras).
This Plan constitutes the framework of the new National Science, Technology and Innovation Policy and expresses the expectation that the Ministry of Science and Technology will have a more intensive and decisively role in the social and economic development of Brazil
Sergio Machado Resende
Minister of Science and Technology
Strategic Priorities and their Respective Lines of Action
Main Lines of Action for 2007-2011
Goals of the 21 Lines of Action
STRATEGIC PRIORITY I
Expanding and Consolidating the National System of S,T&I
Expanding, Integrating, Updating and Consolidating the National System of Science, Technology and Innovation
Line of Action I
Institutional Consolidation of the National System of S,T&I
1. Finalizing a legal and regulatory framework for the National System of S,T&I with the approval and implementation of the Law for FNDCT Regulation; creating and consolidating forums for integrating policies and initiatives by S,T&I actors, particularly for strengthening and enhancing the National Council for S&T (CCT) as the highest advisory body of the federal government and for creating a coordinated system with the business sector; improving the mechanisms for managing and providing financial support, enhancing partnerships with the states and municipalities by expanding joint actions in order to leverage their S,T&I systems and promote their integration into the National System; and revitalizing and strengthening international cooperation, particularly in areas that are strategic for Brazil’s development.
Line of Action 2
Education and Training on S,T&I
2. Increasing the number of scholarships for education, research and training granted by CNPq, with an emphasis on priority areas with regard to the Industrial, Technological and Trade Policy (PITCE) and industries that are strategic for Brazil’s development; supporting the inclusion of researchers—engineers and Ph.D. holders—into companies, as a means of fostering the emergence of business S,T&I structures; promoting the expansion and specialization of professional staff involved in research, development and innovation activities at ICTs, following guidelines that favor efforts to overcome regional inequalities.
Line of Action 3
Providing Infrastructure and Fostering Science and Technology Research
3. Consolidating infrastructure for science and technology research in Brazil by fostering individual and group projects, including networks created by universities, research centers and technological institutes; improving the mechanism and instruments to foster development in S,T&I by increasing the allocation of funds to current programs and creating new programs aimed at meeting the growing demand for research and development in the various subject areas; expanding the National Education and Research Network (RNP) to provide high speed connection for interaction among the entities of the National System for Education, Science, Technology and Innovation; consolidating and transforming research units from the Ministry of Science and Technology into nationwide laboratories or units to coordinate topic area networks that are strategic for Brazil’s autonomous development, encouraging partnerships with state and municipal to conduct R,D&I activities.
STRATEGIC PRIORITIES II
Promoting Technological Innovation in Companies
Enhancing Actions to Foster Innovation and Provide Technological Support to Companies
Line of Action 4
Supporting Technological Innovation at Companies
4. Contributing to create a favorable environment for strengthening innovation-related activities in the private sector, by increasing the inclusion of researchers into the production sector, stimulating cooperation between companies and ICTs, disseminating a culture of technical and scientific learning and education for innovation; and supporting the implementation of R,D&I Business Centers for the purpose of creating jobs, income and adding value to the various stages of production.
Line of Action 5
Technology for Innovation at Companies
5. Creating a structure for the Brazilian Technology System (SIBRATEC), composed of a group of entities that work to promote innovation and provide technology services to companies, located throughout Brazil and organized in networks based on their main activities and line of business. This initiative of creating networks of technology institutions, based on the Industrial, Technological and Trade policy (PITCE) is aimed at supporting business development, technological services, including those aimed at the Primary Industrial Technology (TIB), carrying out R,D&I activities, continuing education, technology transfer and assistance, by promoting increased business competitiveness, supporting small and medium-sized companies, strengthening APLs, and supporting Brazil strategic actions. This line of action will be structured by effectively combining the instruments and mechanisms available, and their organization and implementation require strong coordination and integration of the various existing efforts, involving networks to support business development, headed by different levels of government and the private sector.
Line of Action 6
Incentive for Creating and Consolidating Technology Intensive Companies
6. Increasing and ensuring funds to support company incubators, technology centers and the R,D&I activities of companies located within them, thereby contributing to increased revenue and exports from these companies, with the goal of generating and consolidating innovating companies that are capable of managing themselves with regard to creating and disseminating innovation; stimulating the creation and expansion of venture capital industries, increasing the number and purpose of investment funds; and making use of the government’s purchasing power to stimulate domestic technology companies in order to contribute to the technical and innovative development and increase these companies’ presence in the domestic and international markets.
STRATEGIC PRIORITY III
Research, Development and Innovation in Strategic Areas
Strengthening Research, Development and Innovation in Areas that are Strategic for Brazil
Line of Action 7
Areas with Potential for the Future: Biotechnology and Nanotechnology
7. Strengthening the management and planning of governmental actions in the biotechnology, nanoscience and nanotechnology areas in order to better identify Brazil’s major challenges and opportunities; establishing priorities and creating the human resources, institutional and material conditions necessary to provide greater incentive for innovation by stimulating know-how transfer for the purpose of generating products and processes that use biotechnology and nanotechnology. Promoting increased competitiveness of domestic companies, as established by the Industrial, Technological and Trade Policy (PITCE), by including biotechnology and nanotechnology in the development of new products and processes.
Line of Action 8
Information and Communication Technology
8. Promoting and supporting capacity building and education of human resources in information and communication technology (ICTs), encouraging R,D&I and production activities through cooperation between ICTs and companies, and the creation and expansion of manufacturing and services companies in Brazil. The programs will focus on the following areas and segments: (i) electronics and semiconductors industries; (ii) software and services; (iii) digital technologies for communication, media and networks, including Digital TV, wireless communication, broadband networks, and telecommunications in general, all of which use communication technology and services to process information. The main actions include strengthening and expanding Projeto CI-Brasil, which includes a network of integrated circuit design houses, implementing the CEITEC, fostering the development of semiconductors technology and other materials for electronics, supporting the implementation of a Research and Development Center for Digital Information and Communication Technology, improving the management instruments from the Informatics Law and other legal frameworks, and creating programs to increase the competitiveness of domestic ICT companies.
Line of Action 9
Health Inputs
9. Encouraging the development of products and processes in areas that are strategic for the Brazilian Ministry of Health for the purpose of expanding Brazilian industries, creating greater competitiveness, increased international trade, accelerated economic growth and new jobs; encouraging modernization of the industrial base by establishing regulatory frameworks, lines of credit and incentives towards the development of production processes and the creation of fiscal and tax incentives that are consistent with the realities of the health input industry; encouraging the creation of innovation systems, strengthening the infrastructure necessary for the development of technological platforms and services chains associated with the development of products and production processes; encouraging the education of human resources for business R,D&I management in the health input industry, stimulating the education for entrepreneurs in this sector.
Line of Action 10
Biofuels
10. Promoting Research and Development of renewable energy sources and clean and efficient energy technologies, particularly biodiesel and ethanol, through the Brazilian Biodiesel Technology Network (RBTB) and the implementation of a world class bioethanol technology center, aimed at increasing production, development and use of new technologies and co-products for the sustainable production of energy.
Line of Action 11
Electricity, Hydrogen and Renewable Energy
11. Promoting integrated and coordinated actions for the development of science, technology and innovation in the areas of electricity, hydrogen and renewable energies, by implementing and expanding the R,D&I infrastructure and the development of new technologies for electricity generation, transmission, distribution and consumption; strengthening R,D&I programs for the hydrogen economy, enabling Brazil to achieve commercial use of hydrogen as fuel over the next two decades; implementing R,D&I programs for renewable energies, focusing on sources with the greatest potential for Brazil (i.e. water, biomass, biogas, air and solar), encompassing areas that are not covered by biodiesel and ethanol.
Line of Action 12
Petroleum, Gas and Coal
12. Supporting and promoting integrated and coordinated actions for the development of science, technology and innovation in the areas of petroleum, natural gas and coal, by implementing, expanding and modernizing the R,D&I infrastructure; supporting technological research and development for exploration, production and transportation of petroleum and natural gas, as well as petroleum refinery; implementing actions aimed at the sustainable development of petroleum and natural gas; in addition to developing R,D&I programs for clean coal production and use.
Line of Action 13
Agribusiness
13. Increasing basic scientific and technology knowledge necessary for innovation, as well as maintaining and developing the competitive capacity of Brazilian agribusiness, taking into account economic and technical aspects and focusing on those related to food safety and security and the new fronts opened by food technologies, such as quality foods, nutraceutics, and functional foods; developing methodologies, equipment and systems to increase agricultural automation, focusing on small businesses; supporting R,D&I for innovating production systems; enhancing international cooperation for advancing R,D&I for agribusiness; and revamping the State Agricultural Research Organizations (EOPAS) for Strengthening the National Agricultural Research System.
Line of Action 14
Biodiversity and Natural Resources
14. Creating and improving mechanisms and instruments to protect Brazilian biodiversity and the know-how produced on biodiversity; developing and improving products, processes and services aimed at adding value to the entire production chain that is achieved based on biodiversity in Brazil, and building effective management practices that allow the production of goods that maintain and add value to ecological processes and environmental services; developing R,D&I to expand and effectively manage knowledge and information on Brazilian biodiversity; exploring and managing maritime, mineral and water resources, by creating a network for research on issue areas, which will receive significant investment; and consolidating the Antarctic exploration program.
Line of Action 15
The Amazon and Semi-Arid Regions
15. Expanding and consolidating the R,D&I system of the Amazon and Semi-Arid regions in order to provide existing institutions in those regions with the conditions necessary to respond appropriately to current and future challenges. Understanding the culture of local people and promoting the sustainable use of natural resources in order to achieve a balanced social, economic and cultural development, by expanding and modernizing infrastructure; educating and retaining qualified personnel; supporting and interacting with companies; expanding research networks and organizing them based on issue areas; implementing the R,D&I Management Forum; promoting and creating an Amazon Political and Socioeconomic Science Advisory Center. For the semi-arid region, the strategy is to promote sustainable development of the region by providing the scientific and technological funding necessary to consolidate the current and future standards of living and organized production, stimulating programs for educating and retaining human resources; disseminating technologies; and developing and strengthening research on issue areas, implementing new networks and consolidating the local R,D&I infrastructure (SNP, INSA, CETENE, RENORBIO and new university centers in the region).
Line of Action 16
Meteorology and Climate Change
16. Strengthening Brazil’s prominent role at confronting global climate change. Fostering studies and research on global climate change, aimed at disseminating scientific and technological knowledge and supporting public policies to mitigate greenhouse gas emissions and adjusting to climate change. Expanding and integrating the nationwide capacity to make predictions about the weather, climate and air quality, with agricultural inputs, water resources, energy, transportation, national security, health, tourism and recreation. To that end, implementing and consolidating a monitoring and weather prediction program to support state networks for research in this area; implementing the Brazilian Global Climate Change Research Network (REDE-Clima), to conduct studies and research on the causes and effects of global climate change, aimed at sharing information to enable Brazil to respond to the challenges of climate change, particularly with regard to aspects related to national development; promoting the development of technologies with a smaller ratio of man-made greenhouse gas emissions.
Line of Action 17
Space Program
17. Enabling Brazil to develop and use space technology for the solution of national issues and to the benefit of Brazilian society, including issues associated with environmental monitoring and global change, observation of Brazilian territory and surveying natural resources, air traffic control and government communication. Establishing space infrastructure, composed of launching centers, rocket launchers and satellites, as actions that are essential for achieving Brazil’s long term strategic vision.
Line of Action 18
Nuclear Program
18. Implementing the actions from the new proposed Brazilian Nuclear Program (PNB) and, within the scope of the Science and Technology Ministry, in particular, strengthening the National Commission of Nuclear Energy (CNEN) as an institution; completing the first phase of the INB Uranium Enrichment Plant in Resende, state of Rio de Janeiro, installing a pilot plant to produce UF6 in Aramar, increasing iron ore production and resuming uranium prospecting in Brazil; reinvigorating NUCLEP, enabling it to manufacture components for new nuclear plants; implementing a nationwide policy for handling nuclear waste, creating the Brazilian Radioactive Waste Management Company, building sites for final disposal of low-to-medium radioactive waste, and establishing the final destination for used fuels; creating and implementing the Brazilian Radiopharmaceutical Company and designing a multipurpose research reactor; developing the means and instruments to resume research, development and innovation actions, as well as creating and developing the training necessary for conducting the PNB actions.
Line of Action 19
National Security and Public Safety
19. Promoting research and development of technologies focused on the priorities of the National Security Policy and the interests of public safety, supporting the research infrastructure of science and technology institutions (ICTs) in these areas; human resources training; and promoting innovation at domestic companies. Partnerships between ICTs and public agencies will also be supported for the purpose of formulating, implementing and evaluating public safety policies to combat crime.
STRATEGIC PRIORITY IV
Science, Technology and Innovation for Social Development
Promoting and Improving Science Education in Schools, Producing and Disseminating Technologies and Innovation for Social Inclusion and Development
Line of Action 20
Increasing Awareness of Science, Technology and Innovation and Improving Science Education
20. Contributing to Brazil’s social development, promoting R,D&I and collaborating to improve science, technology and innovation education, by supporting programs, projects and events for disseminating science, technology and innovation; holding the Annual S&T National Week, increasing the number of cities covered; establishing international cooperation to hold educational events and to disseminate science, technology and innovation; creating and developing science centers and museums; developing educational programs in science, technology and innovation, in collaboration with the Brazilian Ministry of Education, such as the Olympic games in mathematic and science, science fairs; producing innovative text books with digital content available through the Internet, for the purpose of supporting teaches and students and disseminating science, technology and innovation more broadly.
Line of Action 21
Technologies for Social Development
21. Coordinating, promoting and fostering actions to produce, publicize, acquire and apply scientific, technological and innovation know-how as mechanisms for the social, economic and regional development of Brazil, as well as instruments for digital inclusion, aimed at developing R,D&I for social technologies and social inclusion, through participation methods.
Although industrialization in Brazil had a late start (i.e. from the 1940s on), over a relatively short period of time a complete and relatively modern industrial park was installed. The institutional consolidation of the S&T sector occurred during the same period, transforming an economy that had previously been predominantly agrarian.
The process of institutionalizing science & technology policy in Brazil started in the 1950's, when the Brazilian government expanded its role in promoting industrial growth. In 1951 the National Research Council (CNPq, which later became the National Council for Scientific and Technological Development) and what was then called the Campaign for the Advanced Training of University-level Personnel (CAPES) were established. These initiatives were landmarks in the process of enhancing the value of scientific development through advanced training and strengthening of researchers and related groups. Governmental support for scientific and technological development started with two basic tools: fellowships and research funding.
The establishment of CNPq was linked to the overall goals of promoting Brazilian industrialization: both absorbing the new technologies introduced into the country and developing and consolidating strategic sectors. The effort involved was only made feasible through support for basic and applied research. Originally, CNPq had the twin objectives of fostering the nation's science and technology capabilities and overseeing all activities involving the use of atomic energy in the country. Later, CNPq's role was widened to include establishing guidelines for Brazilian science and technology policy.
A second turning point occurred in the 1960's with the creation of additional institutions and administrative resources as a response to the growing demands from the science and technology sector, with the aim of associating the country's resources in that area with its budding industrial base. With this purpose in mind, the National Bank for Economic Development (the name of which was later expanded to include "Economic and Social Development") was created in 1964 to support technological research through the Fund for Technical and Scientific Development (FUNTEC).
In 1969 FINEP (the Studies and Projects Financing Entity) was established under the purview of the Presidency's Planning Secretariat. Its role was complementary to that of CNPq, focusing on creating new ways to support Brazilian companies. During the same year, the Government also established the National Fund for Scientific and Technological Development (FNDCT), which FINEP currently manages with the aim of funding projects and programs that are deemed national priorities. Now, CNPq and FINEP are associated with the Ministry of Science and Technology.
In 1974, the National System for Scientific and Technological Development (SNDCT) was established to foster the implementation of technology-oriented policy aimed at social and economic development achieved through scientific progress.
Several national plans for science and technology were designed and implemented through the 1970's and 1980's, for graduate training and research and technology-intensive activities. The worsening economic crises in the 1980's resulted in net reductions in funding allocated to science and technology and the sector as a whole lost some of the strategic priority role it had been previously given.
The establishment of the Ministry of Science and Technology in 1985 aimed at reversing that situation, and it was also a milestone in the creation of a venue for wide-ranging dialogue between the federal government and the science and technology community. The Ministry's creation also demonstrated the Brazilian government's commitment to investing in Research & Development (R&D), and devising and implementing policies based on a science and technology strategy that serves the needs of Brazilian society while increasing the country’s competitiveness in a changing global economy.
Even so, cooperative and dynamic relationships between science and industry in Brazil are still at somewhat formative stage, due to:
a) A process of industrialization based on a massive importation of technology; and
b) Protection of local industry through customs tariffs and market protections due to which there had been no need to invest in R&D.
Although this process took place at the time when the national science and technology system was created, it resulted in a sort of a rupture in the relationships with:
a) Industry, which implicitly imported technology and did not feel the need to develop complex systems;
b) The research and educational system which dedicated itself to the development of human resources for industry and basic research, since there was no demand for technological research.
From 1947 to 1995 the number of university students in Brazil grew 1,600 percent (i.e. 16-fold), reaching an approximate total of 1.47 million students today. Parallel to that, from 1947 to 1989, the GDP (Gross Domestic Product) grew 1,260 percent. This pace of growth was found only in Japan (19-fold) and Germany (8-fold), while other developed countries' GDP grew less than 6-fold. In the case of Brazil, due to its enormous demographic expansion, the social effects of economic growth were limited. Brazil's income per capita increased by a factor of only 5.5.
Even with limited investments in science and technology, this enormous growth took place due to three points: cheap labor, strong market protection mechanisms, and an international environment favoring sizable foreign investments in the country.
The government’s multi-year plan for 1996/1999, pertaining to science and technology (S&T), states the following:
The goal is to raise significantly the investments in S&T. The total of R$ 14.4 billion is allocated, with the private sector share being 40%. This means that investments for the sector will increase from 0.7% of GDP to 1.5%.
Priority is given to the areas of information technologies and automation, aerospace, nuclear energy, environment, marine resources, and health. The main activities focus on the strengthening of the scientific and technological infrastructure, the consolidation of excellence (i.e. science centers), human resources development focused on R&D, support for private research and the innovation process within the enterprises, increasing in technology transfers, the stimulation of university/enterprise integration and the re-evaluation of fiscal incentives to support R&D.
Since the implementation of an S&T policy cannot be carried out without an adequate legal and institutional infrastructure, suitable facilities (e.g. labs, libraries), and highly skilled human resources, the Ministry of Science and Technology has been providing support to all these areas of science, technology and research.
A) Human Resources Development:
CNPq has traditionally supported about 50,000 fellowships and scholarships in Brazil, as follows:
* grants for undergraduates: 20,500;
* specialization, training, advanced training: 3,500;
* graduate scholarships: 11,000;
* PhDs and post-Doctoral fellowships: 5,000;
* research grants: 10,000.
In addition, the Ministry of Science and Technology, in conjunction with CNPq, supports about 2,100 fellowships abroad, out of which 1,800 are at the Doctoral level and 300 at the post-Doctoral level.
B) Financial Support for Science:
* FINEP has been providing support of R$ 50 million per year for research projects;
* Since 1997 FINEP has allocated an extra R$ 50 million to the field of engineering with the objective of strengthening that area to face the demands that are expected to arise from the projected growth in the economy;
The Ministry of Science and Technology is in charge of the implementation of PADCT which is a program funded jointly with the World Bank, created about 14 years ago, to promote the strengthening of specific areas. The Ministry had already received a total of R$ 479 million through this program. A recent assessment of this program showed that out of the 400 projects evaluated, 182 new technological products, 53 patents and 4,220 scientific papers were produced (60% of which were published in international scientific magazines). Also, 1,544 master’s theses and 569 Ph.D. theses resulted from these projects.
Some of the Ministry's activities within the national S&T system are specifically focused on the strengthening and consolidation of the research infrastructure. The following activities can be considered part of these efforts:
* construction of the National Synchrotron Light Lab;
* improvement of facilities for the Technological Center on Information Technologies;
* consolidation of the National Lab for Scientific Computer Operations;
* creation of a national network for advanced computer operations;
* the National Research Network - RNP (an information superhighway);
* launching of the research program on computer-related topics: PROTEM;
* Excellence program (i.e. science centers).
In the industrial sector, the Ministry is stimulating investment by private enterprises in R&D, offering them support in the areas of infrastructure, financing (in 1995 FINEP financed R&D projects in the amount of R$ 190 million), human resources development (the RHAE program supported 6,500 scholarships and fellowships for 106 private organizations), and tax benefits.
The government is trying to reduce the research costs of the enterprises through fiscal incentives. There are four laws that have provided such incentives for science and technology, which have generated a total of US$ 3.2 billion of investments in recent years with corresponding tax deductions of US$ 1.4 billion.
With regard to Brazil’s scientific and technological integration with the rest of the world, it is worth highlighting the following:
* World-class legislation on intellectual property rights (patents, software, integrated circuitry);
* Space program: transparency in the civilian space program - accession to the MTCR, NSG, NPT, CTBT;
* Nuclear area: ratification of the Tlatelolco Treaty, creation of the Brazilian/Argentine Agency for mutual oversight of nuclear facilities;
* Elimination of non-tariff market protections for information technologies and a lowering of all customs barriers;
* Qualification of Brazilian industry under international standards.
* ISO 9000 Certification (in 4 years, more than one thousand enterprises have received their certification)
Brazil is engaged in efforts to improve its competitiveness in science & technology in order to become fully capable dealing with the new conditions and circumstances in the international arena. The Brazilian Government is fully aware that only by strengthening S&T is it possible to cooperate with other industrialized nations and developing countries to achieve economic and social equity and welfare.