CHAPTER 10 FINANCING INNOVATION IN BRAZIL Robson Braga de Andrade, National Confederation of Industry–Brazil (CNI) Challenges for financing innovation Second, a relevant source of market failures for innovation is the and the role of the public sector asymmetry of information between an investor and the inventor, who often has the best information about the probability of Technical progress has lo. [...] In other words, asymmetry externalities in the economy—the social benefits of innovation of information increases the cost of investing in innovation, far outweigh the private ones, These benefits justify the role especially in a country where the cost of capital is already high. [...] Although the companies invest these In the next sections, we discuss support and financing resources, the R&D programs are under the supervision of their mechanisms for innovation in Brazil, the main challenges, and respective regulatory agencies: the National Petroleum Agency how the country can overcome these challenges. [...] The observed increase in R&D investments in companies Regarding tax incentives, in 2018, the volume of exemptions that received tax incentives ranges from 7 to 11 percent in in the Brazilian economy reached almost US$140 billion, or one study,6 depending on the control variables used in the 3.97% of GDP. [...] In the country, these funds represent only 0.01% of GDP, according to the Brazilian The incentive with the greatest tax exemption for innovation Private Equity and Venture Capital Association, compared to in the country, however, is the Informatics Law.
- Pages
- 7
- Published in
- Switzerland
