FINEP Financing Agency for Studies and Projects "The Brazilian Agency for Innovation" Mauro Marcondes Rodrigues President September 2002
FINEP 35 years ± Agency of the Ministry of Science and Technology (MCT) - geared toward mobilizing and articulating reimbursed and non-reimbursed financial resources in order to support the activities of Science, Technology & Innovation.
Brazilian Market ± Brazil US $1.0 trillion worth of purchasing power parity ± Consumer market of 110 million people - 35 million emerging middle class families ± Market Size: á 3 million refrigerators per year - 3 rd market á 1.3 million washing machines per year - 4 th market á 681.9 thousand tons of cookies per year - 2 nd market á 8 trillion liters of soft drinks - 3 rd market á 11 million Internet users - 40% of the Latin America
BRASIL Scientific Production ± Scientific production in Brazil has been showing great advances over the past few years: á 1.4% of the world s scientific publications á 6,000 doctoral and 18,000 masters graduates per year á The granting of 70,000 scholarships per year á 30,000 doctorates out of a total of 52,000 researchers
Articles Published in International Periodicals (number and percentage in relation to the world) 12.000 1,60 Published Articles 10.000 8.000 6.000 4.000 2.000 Brazilian percentage in relation to the world Published Articles 1,40 1,20 1,00 0,80 0,60 0,40 0,20 Brazilian percentage in relation to the world 0 0,00 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 20002001 Source: Institute for Scientific Information (ISI) National Science Indicators
Number of Masters and Doctoral Graduates 20.000 18.000 16.000 14.000 12.000 10.000 8.000 6.000 4.000 2.000 0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Masters Doctoral Source: Center for the Upgrading of University Professionals (CAPES), Ministry of Education (MEC)
Positive Scenario for Innovation ± Economic stability and open economy ± Competition centered in the ability to innovate ± Organized system of scientific and technological research. The Country possesses a crucial group of people ("massa crítica") for its continued effort in scientific and technological research and in the formation of qualified professionals ± Brazil strengthens its support instruments for scientific and technological development
Organized Support System for research in Brazil ± Institutions of support for S,T&I á CNPq 50 years á CAPES 50 years á FINEP 35 years á FAPs (State Foundations to Aid Research) o FAPESP (US $200 million disbursed 2001) o FAPERJ (US( $40 million disbursed 2001) ± Several instruments of support for S,T&I
New Pattern of Financing and Support for S,T&I ± Sector Funds of S,T&I - 14 new funds Strengthening of the National Fund for Scientific and Technological Development (FNDCT) ± Increase the offer of long-term credit (with reduced interest rates) ± Concession of economic subsidy for the R&D activity ± Information Technology Policy - New Law á Fiscal incentives ± MP 66/2002 strengthen of fiscal incentives
Sector Funds of S,T&I (estimated collections for 2003) US$ million á Petroleum and Gas 78.5 á Information Technology 16.2 á Minerals 1.3 á Hydro-Resources 11.5 á Energy 28.9 á Space Technology 2.2 á Telecommunications 103.4 á Transportation 3.2 á University-Companies 86.7 á Research Infra-Structure 64.8 á Health 20.5 á Biotechnology 8.8 á Agri-business 20.5 á Aerospace Technology 8.8 q TOTAL 455.3
New Pattern of Financing and Support for S,T&I ± Pro-active Action in Venture Capital ± Proposed Law for Innovation á Make flexible the relations among research institutions, their researchers and the private sector á Reduction of technological risk for innovative businesses á Technology for the private sector commissioned by the Government
New Pattern of Financing and Support for S,T&I ± Conditions for Financing (integration of instruments) á Long-term credit á Harmonization of interest rates á Venture Capital á Incentives and Subsidies á Participation in Deliberations á DTI Scholarships á Non-reimbursed resources - Grants (FNDCT)
Disbursements FINEP - FNDCT 86PLOOLRQ PLOOLRQLQ US$ m ilhões 320 240 160 80 FINEP FNDCT 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Financing of Science, Technology and Innovation ± MCT/FINEP finances all the stages of scientific and technological development: á from basic research to R&D of large businesses á from pre-incubation to local systems of innovation Grants (FNDCT) Seed Money (K and FNDCT) Seed Money (K and FNDCT Venture Capital and other instruments FINEP/FNDCT Credit parity capital, partnership university-business, scholarships, incentives, subsidies Scientific Research and Infra- Structure Preincubation Incubation of business start-ups Emerging business Consolidation and expansion (concentrated segments) Decision to enter the market Creation of Business or Formal Association Venture Forun Summoning of Partners Innovative clusters MINISTÉRIO Opening DA of CIÊNCIA capital or E acquisition TECNOLOGIA
Incentive for Scientific and Technological Research ± Foster strategic-institutional planning of research á Support the development of research infra-structure á Encourage the constitution of research network among leading and emerging institutions á Support scientific and technological research in line with population needs and national companies demands
Support for emerging technology- based businesses v v v v Support the creation of technology-based businesses that emerge from research centers and universities Support the creation of high-tech spin-offs from large businesses Support the creation and development of technology parks and technology-based business incubators Develop the Venture Capital segment in Brazil á Project "INOVAR" (partnership with IADB/MIF, SEBRAE and PETROS)
Projeto INOVAR Incubator of Funds "INOVAR" Venture Capital Portal - Brazil Venture Forum -Brazil Web of Prospecting Businesses Venture Fund -Brazil Training in Risk Capital
Promote the innovation of large and medium-size businesses ± Support R&D activities of large and medium-size businesses ± Support the interaction among universities, public research institutions and companies ± Promote the development of private research centers ± Attract R&D activities from multinational businesses (World Class Research Centers in Brazil)
Support for the innovation of micro and small businesses ± Support for the technological development of micro and small businesses á developing innovative Clusters á technological enhancement of productive chains ± Technological assistance realized through research institutions á á improvement of products, processes, design and technical norms elaboration of Technological Development Plan ± Financing of Technological Development Plans of micro and small businesses
Innovative clusters " ± Development of innovative clusters North Coffee Cashews Ceramics Coconuts and Natural latex Fructi-culture Lumber and Furniture Fish breeding Midwest Agriculture Agri-business Cotton Leather and Derivatives Natural gas Pharmaceuticals Lumber South Cotton Technological training Leather and Shoes Formation of Human Resources Larvi-culture Lumber and Furniture Agriculture Cachaça and Rapadura Cajú Technological training Floriculture Gypsum Sheep and Goat raising Fish breeding Hydro Resources Viticulture Southeast Northeast Technological training Leather and Shoes Formation of Human Resources Fructi-culture Lumber Papaya
President é Mauro Marcondes Rodrigues Board é Fernando de Nielander Ribeiro é Jorge de Paula Costa Ávila é Terezinha de Jesus Guimarães
General Information ± CLIENT SERVICE á Praia do Flamengo, 200/ 13º andar Flamengo - Rio de Janeiro - BRASIL á Tel.: (5521) 2555-0510 / 0511 á Fax.: (5521) 2555-0509 á E-mail: seac@finep.gov.br ± VISIT OUR WEBSITE ON THE INTERNET VISIT OUR WEBSITE ON THE INTERNET http//www.finep.gov.br