In other countries, the average investment in innovation is 2.3% of GDP. In Brazil, however, the total investment represents only 1.28%, a little more than half the amount allocated by most nations participating in the Global Innovation Index .
Public organizations, such as universities, incubators and state incentive programs, invest 0.64% of GDP in research and development of products and services. Private companies and institutions contribute the same percentage, 0.64%. In countries that lead the global innovation ranking, such as South Korea, ranked 11th, the government exempts companies from paying taxes to the same extent that they invest in innovation.
If your company intends to invest in innovation, therefore, it will have to face very strong international competition.
The availability of opportunities
While national figures show that Brazil is a follower and not a leader in innovation, entrepreneurs who take the risk of investing in technology and developing new ideas reap good results. This was proven by a study conducted by the Institute of Applied Economic Research (IPEA). It found that companies investing in research and innovation are responsible for 25.9% of the revenue of industries in Brazil and generate 13.2% of the country’s jobs.
The benefits of investing in innovation have led 48% of Brazilian industries to plan applications in the area of adopting the concept of Industry 4.0 and whatsapp lead technologies in 2019. For 90% of industries, this movement will happen to improve production efficiency and business management. 58% also intend to develop existing products and 33% plan to create new business models or products.
Agriculture 4.0 is another example of the use
Of technology and innovation to generate greater precision and automation of tasks. According to Embrapa , 7 out of 10 people will live in cities by 2050, requiring more food and efficiency from farmers, while at the same time there will be fewer people available for work.
To meet the needs of the service, industry and commerce segments, more than 5,000 startups are registered with the Brazilian Startup Association . Currently, they and large companies are seen as the main sources of technology and innovation for other organizations.
The problem is that, to reach first place in the Global Innovation Index and improve the products and services by Brazil to its population and to the world, it would still need to increase investment by 60% and present 170% better results. Only then would with Switzerland, number 1 in the ranking.
The calculated risk
Technology and innovation are still hotly topics that are rarely by the Brazilian government and companies. There are several opportunities for organizations of any size to develop a competitive edge in this regard, taking the lead in the wake may slightly differ market. However, there are several risks that need and understood to avoid turning the research and development process into a burden for institutions.
Technologies such as the Internet of Things
Big Data, cloud computing and artificial intelligence will certainly be at the heart of future innovations. Outsourcing processes that are not closely related to a company’s core business is also a trend that companies are likely to adopt. Finally, staff training and development will be a mandatory requirement for the most innovative institutions.
As we have seen, whoever leads this process of creating, developing and offering technology and innovation to the Brazilian market will certainly obtain more revenue and competitive advantages in the national environment.
Did you already know about the challenges and figures
In Brazil related to technology and innovation? Do europe email believe that we can overcome these obstacles? Share this post on your social networks, tag your coworkers and friends so that they and support the development of this area!