By Werter Padilha, coordinator of the ABES IoT Committee
According to McKinsey, the Internet of Things (IoT) has the potential to generate US$ 200 billion in Brazil, starting in 2025, contributing to the improvement in the competitiveness of the national economy, in the improvement of public services and in the quality of life of the population. It is a market that moves software, devices, services and connectivity, providing them for all economic sectors and public services. The world numbers are also impressive and we Brazilians want to position ourselves among the main global IoT markets. But, what stage is Brazil at?
To answer this question, I want to refer to a new version of the glass metaphor: “The pessimist will see the glass as half empty. The optimist will see you as half full. The entrepreneur is looking for more water to complete the glass ”.
In 2016, when Brazil kicked off the preparation of the National IoT Plan (IoT.br), the initiative gave the country a position among the first to worry about having macro policies for this technology. Financed by the Ministry of Science, Technology, Innovations and Communications (MCTIC) and the National Bank for Economic and Social Development (BNDES), the consortium was led by the McKinsey consultancy, with the participation of the Telecommunications Research and Development Center (CPqD) and Pereira Neto I Macedo Advogados. In other words, a selection was formed with excellent participants, which also had the support of an advisory committee, of which I had the privilege of being one of its members.
From this shared effort step by step with society, through the dissemination of reports, research and events involving more than 4,000 professionals, IoT.br was created with 76 actions and the identification of four priority environments for wide use IoT scale: agribusiness, health, cities and industry, presented to the public at the end of 2017. However, currently, the market is expecting its officialization as a Brazilian public policy, as the presidential signature in the document that will establish the main guidelines is missing.
It is important to highlight that, even awaiting the officialization of IoT.br, we had BNDES (National Development Bank); the Financier of Studies and Projects (Finep); the Brazilian Agency for Industrial Development (ABDI); the Brazilian Micro and Small Business Support Service (Sebrae); the Brazilian Company for Industrial Research and Innovation (Embrapii); the Association for the Promotion of Excellence in Brazilian Software (Softex), among others, making available, in 2018, actions and lines of financing for innovation, through public calls and notices, which are already stimulating the development of innovative IoT technologies for verticals prioritized, either through testbeds, networking and incentives to build ecosystems. A clear demonstration that everyone who worked on setting up the plan is aware of the sense of urgency to “make it happen”.
Comparing the current scenario with a soccer match, I would say that Brazil has very competently prepared its IoT game strategy to enter the attack from the beginning, but it is currently on the front row, since IoT.br was released, in 2017. In 2018, skilled “players” on the field played a few individual plays, conducted by the agencies that foster innovation, innovation and research centers, companies and startups. They have kept the ball moving, but Brazil needs the public policy program to get off the ground, with the signing of the decree by the president and in order to return to the attack as a protagonist in IoT in the world.
It is thought that the tax issue is an important obstacle to the signing of the decree, as it is discussed how much to tax the new revenues from IoT. But, common sense must prevail. It is certain that the MCTIC and the Ministry of Economy know that this equation has to be solved well and can propose viable strategies to develop IoT in Brazil so that the country is not dependent on subsidies, does not cause legal insecurity or disincentive to Brazilian entrepreneurship.
We need to be encouraged to produce IoT solutions, involving software, middleware, devices, services and connectivity. But, of course, there will be some type of taxation, as the State needs to collect. Finally, as I always say: We are not running a 100 meter dash. We are running the “worldwide IoT marathon” and, in this dispute, the strategy is to remain in the elite squad, formed by the United States, South Korea, China, among other countries. And, let us not be carried away by pessimism and that we continue to fill the glass with our entrepreneurial and innovative capacity.
To answer this question, I want to refer to a new version of the glass metaphor: “The pessimist will see the glass as half empty. The optimist will see you as half full. The entrepreneur is looking for more water to complete the glass ”.
In 2016, when Brazil kicked off the preparation of the National IoT Plan (IoT.br), the initiative gave the country a position among the first to worry about having macro policies for this technology. Financed by the Ministry of Science, Technology, Innovations and Communications (MCTIC) and the National Bank for Economic and Social Development (BNDES), the consortium was led by the McKinsey consultancy, with the participation of the Telecommunications Research and Development Center (CPqD) and Pereira Neto I Macedo Advogados. In other words, a selection was formed with excellent participants, which also had the support of an advisory committee, of which I had the privilege of being one of its members.
From this shared effort step by step with society, through the dissemination of reports, research and events involving more than 4,000 professionals, IoT.br was created with 76 actions and the identification of four priority environments for wide use IoT scale: agribusiness, health, cities and industry, presented to the public at the end of 2017. However, currently, the market is expecting its officialization as a Brazilian public policy, as the presidential signature in the document that will establish the main guidelines is missing.
It is important to highlight that, even awaiting the officialization of IoT.br, we had BNDES (National Development Bank); the Financier of Studies and Projects (Finep); the Brazilian Agency for Industrial Development (ABDI); the Brazilian Micro and Small Business Support Service (Sebrae); the Brazilian Company for Industrial Research and Innovation (Embrapii); the Association for the Promotion of Excellence in Brazilian Software (Softex), among others, making available, in 2018, actions and lines of financing for innovation, through public calls and notices, which are already stimulating the development of innovative IoT technologies for verticals prioritized, either through testbeds, networking and incentives to build ecosystems. A clear demonstration that everyone who worked on setting up the plan is aware of the sense of urgency to “make it happen”.
Comparing the current scenario with a soccer match, I would say that Brazil has very competently prepared its IoT game strategy to enter the attack from the beginning, but it is currently on the front row, since IoT.br was released, in 2017. In 2018, skilled “players” on the field played a few individual plays, conducted by the agencies that foster innovation, innovation and research centers, companies and startups. They have kept the ball moving, but Brazil needs the public policy program to get off the ground, with the signing of the decree by the president and in order to return to the attack as a protagonist in IoT in the world.
It is thought that the tax issue is an important obstacle to the signing of the decree, as it is discussed how much to tax the new revenues from IoT. But, common sense must prevail. It is certain that the MCTIC and the Ministry of Economy know that this equation has to be solved well and can propose viable strategies to develop IoT in Brazil so that the country is not dependent on subsidies, does not cause legal insecurity or disincentive to Brazilian entrepreneurship.
We need to be encouraged to produce IoT solutions, involving software, middleware, devices, services and connectivity. But, of course, there will be some type of taxation, as the State needs to collect. Finally, as I always say: We are not running a 100 meter dash. We are running the “worldwide IoT marathon” and, in this dispute, the strategy is to remain in the elite squad, formed by the United States, South Korea, China, among other countries. And, let us not be carried away by pessimism and that we continue to fill the glass with our entrepreneurial and innovative capacity.
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