Brazil up in innovation index but still below 2011 rank

Como aplicar Gestão da inovação em Grandes Empresas

Brazil went up five positions in the Global Innovation Index (GII), now ranking 57th among 132 countries compared to 2020. But its performance remains poor, 10 places below the one achieved in 2011.

The index is published by the World Intellectual Property Organization (WIPO) in partnership with the Portulans Institute and some national industry confederations, including the Brazilian CNI.

The ranking is the result of an average of five pillars — institutions, human capital and research, infrastructure, market sophistication and business sophistication — distributed in 81 indicators.

For the National Confederation of Industry (CNI), the Brazilian ranking is incompatible with the fact that the country was the 12th largest economy in the world in 2020.

“Brazil has not yet placed science, research and innovation at the core of its long-term development strategy”, wrote CNI’s president Robson Andrade in the WIPO report. He believes that, for the country to become a truly innovative economy, it needs to be among the top 30 economies.

Amidst the worst health crisis in recent times, Switzerland, Sweden, the USA and the UK remained at the top of the global innovation index. South Korea is now in the fifth place, with a gain of five positions. North America and Europe continue to dominate innovation far over other regions.

China remains the only so-called intermediate economy among the top 30, which is the CNI’s goal. Bulgaria (35th), Malaysia (36th), Turkey (41th), Thailand (41th), Vietnam (44th), Russia (45th), India (46th), Ukraine (49th) and Montenegro (50th) make the top 50.

Brazil lags behind them all, and is fourth among 18 rated economies in Latin America and the Caribbean, surpassed by Chile (53rd), Mexico (55th) and Costa Rica (56th). Among the BRICS countries, Brazil is only ahead of South Africa (61st). China is in 12th place, Russia in 45th and India in 46th.

For Soumitra Dutta, professor of management at Cornell University (USA), the GII shows that, while it is often difficult for emerging countries to improve their innovation systems at a constant level, some middle-income economies manage to perform as well as other developed countries.

Those emerging countries “have managed to complete internal innovation through international technology transfer, designing dynamic technological services that are commercialized abroad and balancing their innovation systems”.

Three of the factors that led Brazil to a better position were the GDP, which, according to the CNI, “gives a false perception of progress due to the use of this relative measure in some indicators”; the inclusion of new indicators in the ranking; and good business performance, reflected in areas such as “high-tech products” and “values received for the use of intellectual property”.

In the “institutions” pillar, Brazil is in the 78th place. In the political environment, it ranks 85th, and in government effectiveness, 86th out of 132 countries. Unsurprisingly, infrastructure is in the 107th position.

Among the main advances in Brazil are indicators of “growth in productivity at work” (58 positions) and total expenditure on software (46 positions).

In CNI’s interpretation, as the calculation of the first considers the last three years’ average in relation to GDP, with 2020 being the last year, the plausible explanation is that, despite the reduction in employees, GDP was drastically reduced, giving the false impression of greater productivity. The second, which uses the previous year as a reference, is explained by the increased investments in software during the pandemic and its relationship with the percentage of GDP, which fell.

Source: Valor international

https://valorinternational.globo.com/