Connecting industry, research organizations and industry: evaluation of a Brazilian public policy for research collaboration

Abstract Information: In the past, studies have suggested that innovation could offer solutions to development challenges in the Global South, with some arguing that being late in the development and adoption of technological innovations could potentially provide advantages when emulating international experiences (Fagerberg & Godinho, 2006; Mobaraki, 2017). However, mere technology replication has proved inefficient, evidencing the need for indigenous innovation that takes into account local specificities (Fu et al., 2011; Smith & Leydesdorff, 2014; Mohamed et al., 2022). Today, the challenges persist: economic inequality, social and gender equity, and sustainability are contemporary issues that add another layer of complexity to the cenario (Chataway et al., 2014; Mazzucato, 2019). Within this context, Brazil has a substantial track record of providing tax incentives for companies to invest in research and development, yet the outcome has proven to be unsatisfactory until now (De Negri, 2017; Faria, 2021). Dagnino (2014) argues that this is mainly due to the Brazilian development model that led to a weak demand for scientific and technological knowledge. In 2013, the government founded the Brazilian Company of Research and Industrial Innovation (Embrapii), a new model for the country in fostering technological innovation (Salles-Filho et al., 2021). Embrapii is a private non-profit organization that fosters collaborative research between Research Organizations (ROs) and Industry, accrediting ROs to become Embrapii Units (UEs). The units seek partnerships and establish contracts with companies to develop technological projects aligned with the needs of the companies. Financial resources for up to one-third of each project are only released once contracts between the parties are already established. This study conducted an impact evaluation of Embrapii, aiming to understand to what extent this model is boosting private investment in technological innovation in the country, and if it is causing or not a crowding-in effect. Departing from a sample of 840 projects completed between 2015 and 2021 by 47 UEs and 565 companies, Embrapii provided us with primary data as follows: 179 questionnaires answered by companies (28% of the sample) and 43 questionnaires answered by UEs (92% of the sample). Additionally, 10 interviews were conducted with agents from companies and representatives of UEs. Furthermore, we conducted an extensive literature review on Embrapii. Only 21 studies were located, the majority based on secondary data and a few on primary data but based on a small number of projects, highlighting the importance of our study as the first proper impact evaluation of the model. Through the collected data, cost-benefit analysis and Qualitative Comparative Analysis (QCA), we expect to calculate the indicators: generated innovations, with emphasis on the percentage of innovations that reduced environmental impact; return on investment; learned competencies; and propensity to invest in R&D before and after the project. Through the analysis of these indicators, we seek to demonstrate the impact of Embrapii's model on private investments in innovation, presenting an incentive model that takes into account the particularities of the Global South.