Bridging the gap between academia and industry Bridging the gap between academia and industry Brazil s roadmap Alberto Rodriguez, Ph.D. The World Bank Knowledge Economy Forum Ancona, Italy June, 2008

Real GDP: Forecast to 2015 Real GDP: Forecasts (On the basis of average growth rates ) US$ trillion 1995 IndiaChinaBrazil CanadaFranceGermany ItalyJapanMexico Russian FederationUKUSA India China USA Japan Germany UK France Italy Canada Mexico Russian Federation Brazil

Knowledge and Growth GDP/per capita growth : Brazil vs South Korea GDP per capata 2000 US$) South Korea Brazil Different result due to growth of labor and capital in Korea Different result due to growth of TFP or to accumulation of knowledge in Korea

The knowledge revolution The capacity to create, access and use knowledge is a basic determinant of global competitivity The main elements of the Knowledge Revolution include: –Greater codification of knowledge and the development of new technologies –Closer links with science, faster rates of innovation and shorter product lives –Greater importance given to education, to the specialization of the labor force and to adult education and training –More dynamic transfer of technology (international licensing flows) –More investments in abstract elements (R & D, education, software) – surpassing fixed capital investments in the OECD countries –Constant changes in the types of qualifications demanded for the employment market.

Changes in the qualifications demanded by the employment market USA: 1960 – 98 Source: Autor, Levy and Murnane (2003) The Skill Content of Recent Technological Change: An Empirical Exploration, Quarterly Journal of Economics.

Defining innovation…. Three kinds of innovation are presented here: –Creation of knowledge and technology –Acquiring and adapting the technology that exists at global level –Spreading and making more widely available the technology that already exists in the country.

Innovation: creating knowledge and technology Brazil (a) possesses a large number of researchers in comparison with its investment in R & D and (b) devotes a high level of public expenditure on R & D compared with its per capita income levels (well above those of other Latin American and Caribbean countries). Source: World Development Indicators.

Role of the universities To improve the technological productivity of public investment To bridge the gap between the university and manufacturing firms through joint ventures research proposals To generate extra resources on the basis of consulting contracts which may also increase the overall impact of such resources To establish strong internship opportunities for students with industry, especially SMEs.

Innovation: the acquisition and adaptation of technology at global level Regardless of the many ways that exist to facilitate the adoption of technology, Brazilian firms continue to employ very little international technological transfer– e.g. involving a low level of imported capital goods. Despite the key importance of human resources exchanges at international level (teachers, students, employees), these exchanges have tended to decline.

Exports of goods as a % of world exports © K4D program

Role of the universities To encourage foreign staff to join the teaching corpuses of the universities and to promote exchanges with international academic institutions. To introduce a more flexible approach to foreign languages in respect of academic papers. To boost the joint participation of teachers and students through attendance at international events concerned with industry, productivity and innovation.

Innovation: Spreading and making more widely available the technology that already exists in the country. Low level of technological adaptation. Moreover, significant contrasts exist between the productivity levels of different firms – even within the same sector. Low standard of worker-training makes it difficult to significantly upgrade product quality. Technology take-up varies greatly, depending on the size and type of particular firms. R & D tends to favor larger firms and it is obvious that broad measures need to be pursued in order to benefit small and medium-sized enterprises.

Manufacturing productivity of different sectors of Brazilian industry Manufacturing productivity of different sectors of Brazilian industry (Added value per worker) Source: Computed from ICS Survey. Note: Highest and lowest 1% of the sample not included

Role of the universities To boost the creation of incubators To organize and participate in professional group meetings dedicated to the exchange of technology and the encouragement of joint development between industry (especially SME) and the academic world. To establish partnerships in the sphere of basic education in order to improve education management, teacher training, assessment systems and the overall quality of basic education.