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Investment in R & D people can no longer backfire
Roberto Lil Lobo e Silva Filho , 10 January 2019
In the publication “The Global Competitiveness Index of the World Economic Forum”, which is reviewed annually in the Brazil region alternating in recent years between 55 and 72a in the evaluation of nearly 140 countries, being one of the worst indicators in Brazil, which will help more that this low is developing our education.
The Brazilian government has been trying for decades in the aftermath of the world model to support competitiveness despite of the known problems such as low quality of education, some r&D centers, with highly qualified staff linked companies (PhD in universities), law and bureaucracy is the Shell, in addition to having a wide variety a little bit qualified in the internal market that does not encourage competition in the international market. This comes through the creation of barriers to imports of products and tax incentives to encourage innovation. However, recent studies from the Institute analyzed in the publication of FAPESP indicate that our policies have been very effective.
The recently published FAPESP “comfort zone” I’ve played two games excerpt with emphasis mine:
“Most of the leading countries in the technology used tax incentives as an important tool to promote research, development and innovation in the private sector. Brazil also should continue to explore this model, but in a more responsible way.”
“Tax exemptions granted by the federal government from companies that invest in research and development (r&D) has increased dramatically in recent years: from about R$ 5 million in 2008, these tax credits totaled R$ 11.3 billion in 2015. Expanding the incentives, however, do not influence private investments in innovation as had been hoped, as indicated by a study published in July by the Institute for Applied Economic Research (international law). Instead, there was the effect of replacing the use of private resources for the public, and offers Andre Rauen, an economist with the International and co-author of the work”.
Our companies, although admittedly they have gone through a very difficult period because of the economic crisis, it has adopted the position of the Brazilian trying to work around the requirements and objectives of the utility and replace r&D spending and incentives provided by the government.
For example, the automotive industry received by the program “innovation of the self” which provides for discounts of 1% to 2% in the ECI if they produce vehicles with 15,46% 18,84% reduction in consumption. The project is based on the hope that companies will invest in engineering and technology basic research, development and training in exchange for tax benefits. The techniques of the treaty, however, was almost in its entirety as set forth in the report of the FAPESP, brought from arrays out to vehicles manufactured in Brazil – the so-called conformal coating of the car that require little effort and innovation.
However, this result perhaps could be expected, once all car manufacturers in Brazil are foreign.
I had the opportunity to accompany for many years the policy relating to the law of Information Technology which offers advantages to companies that develop technology projects in partnership with research centres. Very little about these programs from the point of view of our international competitiveness and the real program of import substitution of high technology content. This is because there was Don’t know of any penalty if the goals proposed to the funding agencies or banks no minimum the. Approval of reports and products.
I think one of the problems that the funding programs will carry in Brazil: the lack of real commitment from the borrower with tangible results.
I suggest in the few moments that there should be loan policy and benefits that would take into account the successes achieved in the projects that previssem product innovations with the future of the international listing. Decisions on the approval of the exemptions to be a posteriori, through the establishment of the pressure by seeking to achieve concrete results. Simplified, one can imagine providing a wide range of benefits, such as for example:
- Reached perfectly the goal promised in the production and exporting, if the loan, interest of safety, if the waiver approval on the wording of this:
- Achieved 50% of Target, or just in the local market: 50% of the market interest rate, if the loan, 50% of the exemption compliance with the global objective;
- Nothing reached: the interest of the market or zero exemption.
In 2012 there was already written a long report of the National Federation of industries, within the program, Mi (corporate mobilization for innovation). Almost all of the problems that have appeared and then persisted, or worsened.
Creativity is a complex phenomenon that requires in addition to efficiency, training and creativity of the creators, the existence of an environment conducive to the development and final achievement of, the very successful production of goods and services as a result.
It is not enough that the country has a group of scientists and engineers well-prepared, and even finance, as we show above, if there is a demand for solutions to real problems, on the basis of innovation to meet the needs and demands of society. The success of the national program of biofuels is a good example to follow for the new technology.
Moreover, as stated in the teachers V. Narayanamurti of Harvard University and a collaborator T. Odumosu, the University of Virginia in the book “cycles of invention and discovery – Rethinkimg no end no limit” which criticizes the work of v. Bush’s “Science The Endless Frontier”:
It’s time to put aside the old hierarchical, recognizing the value of the equivalent of abstraction and experimentation, and abandoning the dichotomy between basic research/application hierarchy between engineers and physicists to adopt the view that the right strategy for the country to join efforts and expertise to do what is necessary to solve the complex problems that move society in the Twenty-First Century.