Newsletter ABPI - Edition 50 - September 2023
After an absence of over a decade, Brazil has once again secured its place among the top 50 most innovative economies globally, as determined by the Global Innovation Index (GII) by the World Intellectual Property Organization (WIPO). In the 2023 ranking, the country has moved up by five positions, now claiming the 49th spot out of 132 countries. This achievement marks Brazil as the foremost innovator in Latin America, surpassing Chile for the very first time.
Within the BRICS group, Brazil has ascended to the third position, outpacing both Russia (51st place) and South Africa (59th place), trailing only China (12th place) and India (40th place).
Brazil has notably excelled across several indicators, including online government services (ranking 14th), e-participation (ranking 11th), and the value of its 16 unicorns – high-value startups (ranking 22nd). The country has also achieved commendable results in intangible assets (ranking 31st), registered trademarks (ranking 13th), and the overall global value of its trademarks (ranking 39th).
Below, you will find an interview with Carsten Fink, Chief Economist of the Department of Economics and Data Analysis at WIPO:
According to GII of WIPO, Brazil advanced five positions in the rank and is among the 50 most innovative economies in the world and holds the first position for the Latin America. What brought Brazil to achieve this position?
Carsten Fink: There is no single factor that can explain Brazil’s advance. The GII is a composite indicator consisting of 80 variables that aim to comprehensively capture the different pillars of innovation ecosystems. That said, it is worth noting that Brazil shows strong performance in the business sophistication and creative outputs pillars of the GII. It also performs well in one new indicator we included in the GII this year – the valuation of unicorn companies.
Is this position sustainable? Are we on the right way? Given the Brazil`s potential, shouldn’t we be in a better position?
CF: Brazil’s innovation performance in the GII is above what its economy’s level of development would predict. So, in this sense, Brazil is on the right track. One worry looking ahead is the decline in venture capital funding in 2022 and continuing in 2023. Higher interest rates around the world have greatly reduced the availability of innovation finance, not just in Brazil but all over the world. There is a risk that Brazil’s vibrant startup system will suffer, if these adverse financial conditions persist.
Foreign countries dominate patent registrations in national territory. Of approximately 26 thousand patent applications, less than 20% are from Brazilian individuals or companies. How can we improve this position?
CF: In the long-term, it’s really the growth of the domestic innovation economy that leads to more domestic patenting, so more investments in research & development by the public and private sectors are a key driver. In selected other middle-income economies – notably, China and India – the share of resident patent applicants has grown as the local innovation economy experienced rapid growth.