Presentation on theme: "Helena Tenório Veiga de Almeida Head of Program Design and Operational Policies Department Information Meeting on Intellectual Property Financing WIPO,"— Presentation transcript:
Helena Tenório Veiga de Almeida Head of Program Design and Operational Policies Department Information Meeting on Intellectual Property Financing WIPO, Geneva March 10, 2009
Presentation Structure Highlights of BNDES – 5 min IP Financing Strategy – 10 min Innovation Numbers in Brazil – 5 min Intangible Assets Evaluation Project – 5 min
Highlights of BNDES Founded in June 20th, % state company under private law Key instrument for implementation of Federal Government industrial and infrastructure policies Main provider of long-term financing in Brazil Emphasis on financing investment projects Brazilian Export Bank Equity investor through BNDESPAR
Innovation Infrastructure Industry Competitiveness International businesses of Brazilian companies. Exports Social inclusion Environment Areas of Activity
BNDES vs Multilateral Banks IDB = Inter-American Development Bank IBRD = The International Bank for Reconstruction and Development (World Bank) (*) Unlike other institutions 12 months fiscal year ends June 30th CAF = Corporación Andina de Fomento
BNDES Innovation Strategy
The argument Development in Knowledge Economy = Promote Innovation Commercial banks dont support innovation financing The public bank must be prepared to finance innovation, because: It is political priority for the country Resources must be available and financial instruments should be appropriate It means an organizational cultural change Risk analysis should be improved Technical competence is essential The public bank must be prepared!
BNDES s role in promoting Innovation Support to Innovation becomes one of BNDES highest priorities. The BNDESs role is to support investments in projects aiming to transform research into economic value. Its a broader concept of innovation, not restricted to industry segments technologically sophisticated. If so, where is the I of Innovation in B.N.D.E.S initials?
The Innovation Dimension at BNDES Although the answer is not clearly stated in the monogram, it can be found in each letter that forms BNDESs initials BANK – Financing is required in order to transform ideas into value. Equity participation is the most proper financial tool to risky investments (usually without tangible guarantee) NATIONAL – Fully harmonized with the Federal Governmental Industrial Policy. Intends to avoid the brain drain from Brazil. ECONOMIC DEVELOPMENT – Global Competitiveness imposes to the country's economies constant changes in their technological basis in order to keep the path of growth and development SOCIAL - Innovation should not be restricted to large enterprises with respectable R&D departments. There is a huge number of SMEs and academic research centers full of innovative ideas which may be turned into successful entrepreneurships throughout Brazil, creating income and qualified jobs.
Innovation: Definition An innovation is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations. (Oslo Manual - Version 3) Revised definition of innovation, considering economic, organizational and marketing perspectives. The objective is to better accommodate service industries and non-technological innovation
Innovation can cover: Research; Science; Technology; Invention; Discovery Innovation: Concept It involves a series of scientific, technological, organizational, financial and commercial activities acquisition of technology acquisition of technology industrial engineering industrial engineering industrial design industrial design capital acquisition capital acquisition manufacturing start-up manufacturing start-up marketing for new or improved products marketing for new or improved products patent work patent work financial and organizational changes financial and organizational changes
It is: Uncomfortable Risky It helps to: Enhance economic growth Employment - create new and better jobs Reduce environmental impact Maintain firms sustainability It requires: Time Knowledge Drive STIMULATION! Innovation: Characteristics
Observing the companies: Need to improve the firm innovative capabilities BNDES Experience: Discussions regarding the projects merit and relevance of the innovation Inputs to Design BNDES IP Strategy The goal is to contribute for the upswing of innovation activities in Brazil and the performance of such activities on a regular basis. Data: Assess of the features of Brazilian innovative firms – PINTEC Statistics Data: Governmental Goal 2008: Increase private R&D/GDP from 0,51% (2005) from 0,51% (2005) to 0,65% (2010) to 0,65% (2010) Governmental Goal 2008: Increase private R&D/GDP from 0,51% (2005) from 0,51% (2005) to 0,65% (2010) to 0,65% (2010)
New Innovation Financing Policy of BNDES NON-REIMBURSABLE FUNDS EQUITY LINES OF CREDIT Closed-End Investment Funds and Equity Direct operation Seed Money TECHNOLOGICAL INNOVATION FOCUS ON STRATEGY FOCUS ON PROJECT INNOVATIVE CAPITAL FUNTEC TECHNOLOGY FUND support research, development and innovation projects in nationally relevant areas PROSOFT, PROFARMA, PROTVD, PRO-Aeronautics and Engineering SPECIFIC SECTORS CREDIT CARD Only for Micro, Small and Medium Enterprises Among the products: Innovation Services, Certification and IP Applying Costs
Innovative Capital Facility – Focus on Firms Strategy Long-term financing and/or subscription of securities Support companies to develop capabilities to undertake innovative activities on a regular basis. This includes investments in tangible capitals, including physical infrastructure, and intangible capitals. Such investments must be consistent with the companies business strategies and be presented as per the Innovation Investment Plan model. Lines of Credit
Technology Innovation – Focus on Project Long-term financing and/or equity participation Support technology projects aiming at the development of new or significantly improved products and/or processes (at least for the domestic market) involving technology risk and market opportunities. Lines of Credit
Funds and Equity Participation Follow-onofferings Initial Public Offering Start-Ups Seeds CapitalMarkets Early stage companies Emerging companies Established companies Seed Money Private Equity Venture Capital CRIATEC 15 New Funds Governance Funds
BNDES Credit Card Pre-approved rotative credit Interest Rate – fixed monthly Fixed installments Limit of over US$ 210,000 per card Operations directly through the site 122,000 cards floated 5,000 suppliers 67,000 products Certification and Innovation Services IP Costs
Technological Fund – FUNTEC Part of BNDES annual profit Non-Reimbursable Fund Beneficiaries: Technology Institutes and Supporting Institutions Strategic areas Health Renewable Energy Environment (control cars and plants emissions). Support research, development and innovation projects in nationally relevant areas, allowing taking strategic opportunities for Brazil, enabling it to take leading positions. IP Negotiation : according with BNDES policies
Disbursements to innovation (2008) FINAME Lines of Credit 58 Specific Sectors Programs215 FUNTEC 33 Investment Funds (2007) 85 Equity participation (2007) 150 Machines to SMEs418 TOTAL 960 US$ MM
Innovation In Brazil: some figures
Brazil: Highlights INVESTMENTS IN R&D (%GDP) ISRAELSWEDENFINLANDJAPAN SOUTH KOREA USATAIWANGERMANYSINGAPOREFRANCECANADANETHERLANDS UNITED KINGDOM CHINA4,703,893,483,332,992,622,522,462,362,131,981,781,781,34SPAINITALYRUSSIANBRAZILHUNGARY SOUTH AFRICA INDIAPORTUGALMALAYSIACHILETURKEYPOLANDMEXICOARGENTINA1,121,101,071,020,940,860,850,800,690,680,670,570,500,46 Source: OCDE (2007), Ministry of Science and Technology (MCT,2007), World Bank (2006) and RICYT (2006).
MASTER AND Ph.D. DEGREES STUDENTS GRADUATED MASTER Ph.D NUMBER OF COURSES MASTER Ph.D Source: MCT (2008) Brazil: Highlights
Source: Institute for Scientific Information BRAZILIAN SCIENTIFIC PRODUCTION NUMBER OF ARTICLES % WORLD Brazil: Highlights
Brazil: Highlights in innovation Incubators in Brazil (2008) – 383 incubators: 339 active, 32 being implemented and 12 projects 85% attached to universities (64% are public) – 17 research support foundations – 5,620 enterprises connected to incubators and responsible for generating 30,000 direct jobs
The Evaluation of Intangibles Assets Project
BNDES and the Knowledge Era Knowledge Economy vs Industrial Society Credit Risk: higher emphasis in the future New Approach for Evaluating and Monitoring of Projects / Enterprises / Economic Groups New factors to be observed: intangible assets Integrated Actions Knowledge Management Development of Core Competences IT Tools Challenges for BNDESs operations : 27
Evaluation System and New Metrics - Focus on Intangible Assets - Knowledge, Know-how Governance Innovation, R&D Process Patents and brands Design Reputation Social and environmental accountability Human Resources Partnerships (technological, commercial, integration with Research Institutes and Universities) Marketing Value added products Export drive
STRATEGIC CAPITAL STRATEGIC CAPITAL INNOVATION AND PROCESS CAPITAL INNOVATION AND PROCESS CAPITAL INNOVATION AND PROCESS CAPITAL INNOVATION AND PROCESS CAPITAL RELATIONSHIP CAPITAL RELATIONSHIP CAPITAL CORPORATE GOVERNANCE CAPITAL CORPORATE GOVERNANCE CAPITAL CORPORATE GOVERNANCE CAPITAL CORPORATE GOVERNANCE CAPITAL INTELLECTUAL CAPITAL INTELLECTUAL CAPITAL INTELLECTUAL CAPITAL INTELLECTUAL CAPITAL FINANCIAL CAPITAL FINANCIAL CAPITAL FINANCIAL CAPITAL FINANCIAL CAPITAL BNDES Methodology for Intangibles
30 RATING FOR INTANGIBLE CAPITAL Illustrative RELATIONSHIP CAPITAL: CUSTOMER SATISFACTION Has a good transactional relationship with suppliers and clients Develop long term relationships with suppliers and clients, adapting products and processes to maximize value on the entire supply chain Develop long-term relationships with suppliers and partners... Establish partnerships with companies in unrelated business to capture synergies and growth opportunities Develop relationships... Establish partnerships... Cooperation and alliances are at the core of the business model, leveraging competencies of each agent to optimize and maximize returns over the entire network Feedback and improvement RELATIONSHIP CAPITAL: NETWORKS AND ALLIANCES RELATIONSHIP CAPITAL: BARGAIN POWER INTELECTUAL CAPITAL INNOVATION CAPITAL IC Rating: 76 IC Rating: evaluate items Has weak relations with suppliers and clients 3 3
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