bridging the gap between academia and industry bridging the gap between academia and industry brazil...
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Bridging the gap between Bridging the gap between academia and industryacademia and industry
Brazil’s roadmap
Alberto Rodriguez, Ph.D.
The World Bank
Knowledge Economy Forum
Ancona, Italy
June, 2008
Real GDP: Forecast to 2015Real GDP: Forecast to 2015Real GDP: Forecasts 2004-2015 (On the basis of average growth rates 1991-2003)
0
2
4
6
8
10
12
14
16
2003 2005 2007 2009 2011 2013 2015
US$ trillion1995
India China Brazil
Canada France Germany
Italy Japan Mexico
Russian Federation UK USA
India
China
USA
Japan
Germany
UK
France
Italy
Canada
Mexico
Russian
Federation
Brazil
Knowledge and GrowthKnowledge and GrowthGDP/per capita growth : Brazil vs South GDP/per capita growth : Brazil vs South
KoreaKorea
0
2000
4000
6000
8000
10000
12000
1960 1965 1970 1975 1980 1985 1990 1995 2000
GD
P p
er c
apat
a 20
00 U
S$)
South Korea
BrazilDifferent result
due to growth of labor and capital in Korea
Different resultdue to growth of TFP or to accumulation of knowledge in Korea
The knowledge revolutionThe 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 Changes in the qualifications demanded by the employment marketby the employment market
USA: 1960–98USA: 1960–98
-10
-8
-6
-4
-2
0
2
4
6
8
10
12
14
16
1969 1974 1979 1984 1989 1994 1998Per
cen
tag
e ch
ang
e
Specialist thinking
Complex communication
Manual routine
Cognitive routine Cognitiva
Non-routine manual labor
Source: Autor, Levy and Murnane (2003) “The Skill Content of Recent Technological Change: An Empirical Exploration,” Quarterly Journal of Economics.
Defining innovation….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 technologyBrazil (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).
Colombia
Venezuela, RB
Malaysia
Brazil
Turkey
Trinidad and Tobago
Chile
China
ArgentinaRomania
Italy
Hong Kong, ChinaBulgaria
Czech Republic
PolandHungary
Croatia
Portugal
Ukraine
Spain
Belarus
Georgia
Ireland
Korea, Rep.
NetherlandsFranceBelgium
Australia
Russian Federation
Canada
Switzerland
LuxembourgSingapore
Finland
-2-1
01
2Ln
rese
arch
ers
in R
&D
per
mill
ion
peop
le
-3 -2 -1 0 1 2Ln R&D expenditures as % GDP
coef = .59336131, se = .09691843, t = 6.12
UkraineChina
Belarus
Bulgaria
Romania
Colombia
Russian Federation
Turkey
Brazil
Malaysia
Venezuela, RB
Poland
Croatia
Hungary
Chile
Czech Republic
Argentina
Trinidad and Tobago
Portugal
Korea, Rep.
SpainItaly
Australia
BelgiumFranceNetherlands
Finland
Canada
Hong Kong, China
Switzerland
Luxembourg
-2-1
01
2Ln
R&
D e
xpen
ditu
res
as %
GD
P
-2 -1 0 1 2Ln GDP per capita
coef = .34479926, se = .11067687, t = 3.12
Source: World Development Indicators. 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 of goods as a % of world exportsexports
© K4D program
Brasil v OECD countries
02468
1012141618
1960
1963
1966
1969
1972
1975
1978
1981
1984
1987
1990
1993
1996
1999
2002
Canada
France
Japan
Spain
UK
USA
OECD
Brazil
Brazil v global competitors
0
1
2
3
4
5
6
7
1960
1963
1966
1969
1972
1975
1978
1981
1984
1987
1990
1993
1996
1999
2002
China
India
Korea
Mexico
Russia
Indonesia
Brazil
Brazil v regional competitors
0
1
2
3
4
5
6
7
8
1960
1963
1966
1969
1972
1975
1978
1981
1984
1987
1990
1993
1996
1999
2002
Argentina
Colombia
Chile
LAC
Brazil
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 Manufacturing productivity of different
sectors of Brazilian industrysectors of Brazilian industry (Added value per worker)
Source: Computed from ICS Survey.Note: Highest and lowest 1% of the sample not included
Sector Max / Min Adj Max as % of Max
Adj Max / Mean
Food & Beverage 12,900.07 57.22 9.42 Textile 1,169.01 67.31 5.99 Apparel 79,103.56 31.60 9.14 Leather & Footwear 65,897.30 73.33 4.81 Chemicals 9,879.34 61.91 7.83 Machinery & Equipment 315,929.99 37.98 33.83 Electronics 6,658.67 52.03 10.00 Auto-Parts 689.60 64.88 4.17 Furniture 26,916.31 35.06 7.88 Average 57,682.65 53.48 10.34
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.