Finep and the Brazilian National Bank for Economic and Social Development (BNDES) launched, last Thursday, the 20th, in Campinas/SP, a public call for proposals aimed at attracting, establishing, or expanding Research, Technological Development, and Innovation (R&D&I) Centers in Brazil.
In addition to Brazilian companies, the public call is open to proposals from foreign companies interested in bringing technological expertise to Brazil. This presents a significant opportunity for companies worldwide to explore and invest in the opportunities Brazil has to offer.
R&D&I centers are facilities that include laboratories, pilot plants, demonstration plants, and other infrastructure dedicated exclusively to research, technological development, and innovation activities. These activities encompass basic and applied research, product development, testing, validation, and collaboration with universities and other institutions.
The call will make R$ 3 billion available to support research centers through credit instruments, equity participation, non-repayable resources for cooperative projects between companies and Scientific and Technological Institutions (ICTs), and economic subsidies, managed by Finep or BNDES.
Proposals must involve the establishment or expansion of proprietary R&D&I centers to conduct research, technological development, and innovation activities related to at least one of the missions of Nova Indústria Brasil (NIB), the federal government’s industrial development policy. They must also require credit exceeding R$ 10 million for centers to be established or expanded in the North and Northeast regions and more than R$ 20 million for other regions. The implementation period for proposals can be up to 36 months.
According to Finep’s president, Celso Pansera, this initiative is another significant effort to foster investments that drive the country’s technological and economic development. He highlights that R&D centers play a crucial role in attracting and maintaining highly skilled jobs that contribute to higher income levels and greater economic complexity. “Large Research Centers also attract a whole ecosystem of qualified suppliers, creating a virtuous cycle of growth and innovation.”
BNDES president, Aloizio Mercadante, emphasizes that these centers accelerate the launch of new or improved products and services, enhancing Brazil’s competitiveness, economic complexity, and diversification. “Brazil has significant scientific expertise, trains highly skilled professionals, produces knowledge, has physical infrastructure, and a diverse network of research institutes. The country ranks 14th globally in scientific production (2023), but it still has a long way to go in transforming these assets into corporate innovations and retaining talent.”
Currently, Brazil ranks 49th among 132 countries in the 2023 Global Innovation Index (GII). Despite progress, this ranking is still considered low given the country’s potential, as Brazil is among the world’s ten largest economies.
R&D&I Around the World
Government incentives for R&D&I activities play a crucial role in attracting research centers from multinational companies, with strategies varying significantly across countries. China and India provide direct incentives focused on specific sectors such as electronics and pharmaceuticals. Japan and the Netherlands offer tax benefits. In the United Kingdom, companies—especially micro, small, and medium-sized enterprises—can receive R&D&I tax incentives of up to 175%, while large corporations receive 130%, with the option to use future credits or receive reimbursements of up to 24% of eligible expenses.