Nova Indústria Brasil stands out for its significant volume of investments and the creation of a robust institutional structure
*By Rodrigo Barreto
Innovation is seen as the main catalyst for economic and social development. However, in Brazil, the implementation of public innovation policies faces complex challenges, especially at subnational levels. The case of IdeiaGov, a São Paulo-based program that accelerated startups and implemented innovative solutions before its discontinuation in 2023, illustrates these obstacles well. Although it achieved initial success, the program demonstrated a strong dependence on political support, making it vulnerable to changes in government. This fragility reflects a common problem in public innovation policies in Brazil, where political discontinuity hinders the consolidation of promising initiatives.
The “innovation paradox” reported by Cirera and Maloney (2017)¹ describes a situation in which investments in Research and Development (R&D) do not result in proportional returns due to a disconnect between aspirational policies and their practical execution. In the Brazilian context, this discrepancy is evident in programs such as IdeiaGov, whose failure to remain active despite its potential reflects the need for greater political and institutional resilience. Transitioning governments and the lack of robust governance structures make initiatives like these dependent on a single political sponsor, which poses a high risk to their continuity.
This reality highlights a crucial point: in addition to financial resources and technical skills, the sustainability of innovation policies requires an institutional framework capable of transcending electoral cycles. In Brazil, the Ministry of Science, Technology and Innovation (MCTI) plays a key role in this effort, particularly within the scope of the national strategy outlined by “New Industry Brazil”. The program seeks to revolutionize national industry by promoting digital transformation in sectors such as the Internet of Things, artificial intelligence and semiconductors.
The New Industry Brazil stands out not only for its significant investment volume – with R$7 billion annually earmarked for the ICT and semiconductor sector – but also for the creation of a robust institutional structure that can serve as a model for future initiatives. During the launch ceremony, Minister Luciana Santos highlighted the impact of the Brasil Semicon Program, which improves the ICT Law and PADIS, benefiting more than 500 companies and generating more than 100,000 direct jobs in the sector supported.
The proposal for Mission 4 of the New Industry Brazil is ambitious: with more than R$186.6 billion in public and private investments, the federal government intends to foster the manufacturing of chips, industrial robots and advanced technological solutions. The role of the MCTI is central to ensuring that this transformation occurs in a sustainable manner, with a governance structure that involves both the public and private sectors. The integration of different actors, such as universities, technology companies and civil society organizations, provides the initiative with the resilience needed to survive political changes and ensure its long-term continuity.
The IdeiaGov case therefore provides valuable lessons for the future of innovation policy in Brazil. The discontinuation of the program highlights the importance of innovation projects that do not depend exclusively on the support of a particular government. The creation of autonomous institutional structures, involving a diverse range of actors, can mitigate political vulnerability and ensure the sustainability of these initiatives. In this sense, the governance strategy adopted by Nova Indústria Brasil offers an example of how Brazil can overcome the “innovation paradox”. By aligning innovation policy with a resilient and independent institutional framework, the country will be able to transform its R&D investments into concrete results, boosting industrial competitiveness and generating qualified jobs in cutting-edge sectors.
¹Cirera, X., & Maloney, W. F. (2017). The Innovation Paradox: Developing-Country Capabilities and the Unrealized Promise of Technological Catch-up. Washington, DC: The World Bank.
* Rodrigo Barreto is a researcher at the ABES Think Tank, a lawyer and superintendent of the Paraíba Foundation for Education, Technology and Culture (FUNETEC-PB). He holds a Master's degree in Public Management and International Cooperation from the Federal University of Paraíba (UFPB) and is a PhD candidate in Public Administration and Government at the São Paulo School of Business Administration of the Getúlio Vargas Foundation (EAESP/FGV).
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
Article originally published on the IT Forum website https://itforum.com.br/colunas/inovacao-politica-transformacao-industria/
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