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Presentation on theme: "INDUSTRIAL DEVELOPMENT IN BRAZIL Tadao Takahashi."— Presentation transcript:


2 CONTENTS Brief Historical Perspective Brazil Today Some Flagship Initiatives The Future


4 No Industry in Brazil 1808–Sudden Awakening 1824–The First Industry Association 1860’s–A Visionnary 1888–Abolition Of Slavery 19XX–The Second Sao Paulo Industrial Fair 1920’s–The First World War Effort 1940’s–The Second World War Effort 1960’s–The Bossa Nova Years BRIEF HISTORICAL PERSPECTIVE

5 Edict of the Queen of Portugal prohibiting industrial activities in Brazil.

6 1808 – Royal Family of Portugal arrives in Rio, fleeing from Napoleon’s Army.

7 1824 – First Industry Support Association founded in Rio.

8 1860’s – Baron of Mauá, an industry tycoon ahead of his times in Brazil.

9 1888 – Slavery is finally abolished in Brazil (and Monarchy will go with it).

10 19XX Certificate of Second Industrial Fair in Sao Paulo.

11 1920’s – Brazil takes part in I World War efforts (and starts to modernize its industry).

12 1940’s – Brazilian Airforce supports initiative to manufacture Airplanes in the country.

13 1950’s – Brazilian Presidente and Architect Lucio Costa in “Brasília”.

14 1950’s – Heavy industries in Brazil takes off.

15 1950’s – The Auto-Making Industry takes-off

16 It keeps being successful, but there is still more to know There is a Brazil that many people know SoccerCarnivalCoffeeAmazon forest

17 The Brazil that you must know Innovation, technology, competitiveness and productivity


19  Low inflation rates during the last 12 years (3,2% in 2006)rates  Reduction of external vulnerabilityexternal  Brazil’s risk fell down and keeps falling (  216)  Exports and trade superavit boom  Reduction of social inequality: the lowest level in 30 years  70% of the population had income growth ( )  Reduction of poverty: the lowest level ever  Revenue of the poorest grew more than 10% (2001-4)  5 million people left a situation of extreme poverty  1,2 million people entered into the formal work market (2006)  S&T Development  More than new Drs. / year Brazilian Economic and Social Development

20 Brazilian industry is threatened “from the bottom” part by the competition of products/process with low cost production structure and low wages and “from the top” part by countries / companies with high level of innovation and product differentiation Current Vision Industrial Strategy

21 Change Brazilian industry pattern of competition through innovation, strength of productive chains and enabling the environment for private and public investments, in order to be competitive in the international market Future Vision Industrial Strategy

22 Industrial Modernization Economic growth, Improvements in competitiveness and efficiency Innovation and technological development Targets Focus of the New Initiative Industrial, Technological and Foreign Trade Policy

23 Strategic Options Horizontal Policy Future bearing activities software semiconductors capital goods pharmaceutics and medicines biotech nanotechbiomass Industrial, Technology and Foreign Trade Policy


25 Some Projects 1.Nanotechnology Labs network, linking with industry 2.Biotechnology National Forum: policy guidelines Infrastructure, basic research, regulation, metrology, linking with industry 3.Information and communication technologies: education as a driving force 4.Renewable energy: biofuels 5.Observatory of competitiveness and innovation

26 The Genolyptus Project Example of pre-competitive cooperation between Universities and Companies, involves 13 enterprises, 7 universities and 3 research centers from National Research Institute for Agriculture (Embrapa): a suite of genomic, field and information resources to discover, sequence, map, validate and understand the underlying variation of genes and genomic regions of economic importance in Eucalyptus with a focus on wood and disease resistance. Building Resources for Molecular Breeding of Eucalyptus

27 Computational Fluid Dynamics (CFD) Prize CNI Institutions: Embraer, CTA, USP – Poli & São Carlos, UNICAMP, UFSC, UFU, PUC-Rio 3 enterprises: ESSS, CITS & DELTACORE. 100 specialists.

28 optical fiber nanotech applications innovative networks (clusters) automation new materials

29 1983 Piraúna 293 m Petrobras : world's top producer of oil in deep waters

30 Bioethanol Biodiesel H-Bio Renewable Energy: Biofuels


32 Australia Canada Spain South Corea Italy United Kingdom Holland Germany France India Mexico Japan Nigeria Pakistan Bangladesh Indonesia Russia USA Brazil China Area over 4 million km 2 Population over 100 million GDP* > US$ 400 bilhões Source: Investe Brasil *Nominal GDP Brazil and the BRICs R. Dauscha (ANPEI) 3ª CNCTI

33 1.Recycling of aluminium cans 2.Jeans, iron ore, compressors for refrigerators 3.Footwear 4.Commercial jets, beer Transnational companies whose Brazilian branches are among the 5 biggest in the world Avon Fiat 3M Telefonica Siemens Unysis Coca-Cola Volkswagen Source: Investe Brasil Brazilian Industries - Sucessful Cases Accor Xerox Goodyear Nestlé R. Dauscha (ANPEI) 3ª CNCTI 5.Radios 6.Cement 7.Pulp 8.Chemical Industy 9.Steel 10.Vehicles, capital goods The Placement of Brazil in World Industry Selected sectors

34 Obstacles to innovation Need to educate more & better; Little and not diversified financing (FINEP/BNDES/FAP’s); Bureaucracy (150 days in Brazil x 3 days in Australia); Tight fiscal policy (38% of GDP); Lack on infrastructure and logistics.

35 Goals for Innovation Increase in number of companies that innovate and differentiate their products; Increase in the quantity of patents (levels compatible to Brazilian participation in world GDP); Increase in cientifical and technological in the products, processes and services in Brazil, specially exports; Increase on national expenditures in Cience, Tecnology and Innovation – to reach 2% of GDP Increase in business investments – from 40% to 60% Increase in the GDP to 5% year


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