Class 12 Flashcards
Why doesn’t Brazilian manufacturing compete abroad?
The lack of technology and innovation in manufacturing is fundamental as the world increasingly seeks competitive and innovative products.
Increases productivity and decreases the number of competitors (they end up acquiring or eliminating smaller ones)
Why is there a lack of innovation in Brazil? (4)
- There is a lack of government long-term plans and strategies for science and technology
- Poor relationship between companies and universities (Public University was never able to relate to Brazilian private companies in order to provide them with technology as happens in other countries)
- Granting subsidies or tax incentives receive low priority on the agendas of most governments
- Vulnerability of the patent system. Very little importance for intellectual property or copyright
Today, in the world, it is private companies that innovate. In Brazil, the biggest investors in R&D are still state-owned companies and public universities
The larger the number of big companies in a given country the more that country will spend on R&D and, likewise, the greater the number of patents / innovations
Why private Brazilian companies do not invest in R&D? (2)
- Fear: Companies would start investing much more in research and technology if they knew what the government’s plans are for the country’s future. Not knowing about these policies scares companies away from their long-term projects.
- Very high interest rate: Entrepreneurs prefer to buy public bonds.
What is missing in Brazil in order to have more innovation? (5)
- There are very few large companies. These rare companies are not in high-tech sectors.
- Small companies do not receive the minimum support to develop research.
- There are no bank lines to finance research for companies.
- Institutions are weak and positions are filled for political reasons and never for competence.
- Decadent and deteriorated educational system mostly in basic and fundamental schools
