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Brazilian innovation may be impacted by deindustrialization process

In Brazil, there are several innovative companies recognized in the market, which have managed to grow and multiply profits through investment in innovation.

Embraer, for example, attributed 51% of the revenue of US$ 4.1 billion, registered in 2021, to innovations that took place in the last 5 years, according to a calculation made by Embraer. CNN .

Traditional companies such as Vale and Petrobras, Natura and Magazine Luiza, Fleury and Weg are also considered by specialists as innovative in their businesses.

However, a few years ago, this process stalled. Compared to the world, the lack of innovation is evident: the Brazil is in the 57th position of the UN’s Global Innovation Index.

barriers

For the coordinator of the USP Innovation Observatory, Glauco Arbix, this happened because Brazil has a very closed economy to think about an accelerated expansion of innovation.

“We are behind the most advanced practices in the business world and we are behind in the university itself. The whole world wants to put the university together with the company. Here, the university is segregated and attacked, which is where research comes from. The money to invest in technology is also expensive and, often, there are not qualified people to do that. If we don’t break this cycle, we’ll get worse,” says Arbix.

According to the expert, the barriers are not just for Brazilian companies and startups, but also for foreign ones.

“The difficulties start when you go to register, with paperwork and bureaucracy. Taxes, precarious infrastructure, difficult access to large databases”, he explains. “Considering that mass and intensive innovation has the power to make a country take a leap in the economy, it is as if the scarcity of innovation has the opposite effect”.

Public sector and private sector

Between 2015 and 2020, 36,600 factories closed their doors in Brazil, which is equivalent to 17 industrial establishments extinguished per day in the period. This is a process known as deindustrialization .

Not only that, but according to the latest Innovation Survey by the Brazilian Institute of Geography and Statistics (IBGE), released in 2020, only 9% of the 117,000 companies interviewed received some kind of incentive from the public sector, such as funding for research or purchases. of machinery and equipment, to innovate between 2014 and 2017.

According to CNI, 89% of medium and large companies financed, with private resources, innovation initiatives during the first year of the pandemic.

“The private sector has to be clearly aware that innovating is not an option for them. It’s a must. He’s up against the wall. You have to present new products, new processes and diversify what you do, because there is a very strong market aggressiveness. Otherwise, these companies are condemned to be niched, when they do not run the risk of closing”, evaluates Arbix.

For the professor, there are ways to turn this game around and put innovation as a priority, both in the private and public sectors. For that, the government needs to take care of the digital infrastructure, computerizing schools so that children already have access to these technologies from an early age.

This encourages the creation of startups, so fundamental to stimulate competition in the country, he says.

“It is perfectly possible to turn Brazil upside down in 10 or 15 years. Several countries, which even had worse rates than ours in the past, did this. We have to study them and learn from these experiences,” she says.

About the innovative companies present on the Stock Exchange, CNN Soft Business spoke with stock analyst at investment house Nord Research, Danielle Lopes, who explained the relationship between innovation and the value of these companies’ roles on B3.

“Innovation is not necessarily linked to the recognition of an action. But if we consider that innovation will improve and increase the company’s results, then we can say that the action will follow this movement. The result dictates. And innovation can contribute. But she is not a little motor to pull stocks up”.

the episode of CNN Soft Business which airs this Sunday (4) also talks with Danielle Lopes, an equity analyst at the Nord Research investment house, to understand the relationship between innovation and the value of company shares on B3.

The program airs every Sunday at 11:15 pm. You can check it out on TV and also on Youtube.

Source: CNN Brasil

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