Transcript Helena Tenório Veiga de Almeida Head of Program Design and Operational Policies Department Information Meeting on Intellectual Property Financing WIPO, Geneva March 10, 2009

Helena Tenório Veiga de Almeida
Head of Program Design and Operational Policies Department
Information Meeting on Intellectual Property Financing
WIPO, Geneva
March 10, 2009
Presentation Structure
• Highlights of BNDES – 5 min
• IP Financing Strategy – 10 min
• Innovation Numbers in Brazil – 5 min
• Intangible Assets Evaluation Project – 5 min
Highlights of BNDES
Founded in June 20th, 1952
100% state company under private law
Key instrument for implementation of Federal
Government industrial and infrastructure policies
Main provider of long-term financing in Brazil
Emphasis on financing investment projects
Brazilian Export Bank
Equity investor through BNDESPAR
Areas of Activity
Innovation
Infrastructure
Industry Competitiveness
International
companies.
Exports
Social inclusion
Environment
businesses
of
Brazilian
BNDES vs Multilateral Banks
US$ millon
BNDES
IBRD
IDB
30/06/2008*
CAF
31/12/2007
31/12/2007
31/12/2007
114,409
69,907
233,599
12,597
14,070
20,353
41,548
4,127
3,827
134
1,491
401
Loans Disbursements
33,962
6,725
10,490
5,844
Total Loans
92,885
47,954
99,050
9,548
Total Assets
Shareholders' Equity
Net Income
12.3%
29.1%
17.8%
32.8%
ROA
3.8%
4.7%
1.9%
3.6%
ROE
33.2%
0.7%
6.0%
10.5%
Non performing loans
0.11%
0.10%
0.47%
0.01%
1952
1959
1945
1968
Capitalization
Founded
IDB = Inter-American Development Bank
IBRD = The International Bank for Reconstruction and Development (World Bank)
(*) Unlike other institutions 12 months fiscal year ends June 30th
CAF = Corporación Andina de Fomento
• BNDES Innovation Strategy
The argument
 Development in Knowledge Economy = Promote Innovation
 Commercial banks don’t support innovation financing
The public bank must be prepared to finance innovation,
because:
 It is political priority for the country
 Resources must be available and financial instruments
should be appropriate
 It means an organizational cultural change
 Risk analysis should be improved
 Technical competence is essential
The public bank must be prepared!
BNDES ‘s role in promoting Innovation

Support to Innovation becomes one of
BNDES highest priorities.

The BNDES’s role is to support investments in
projects aiming to transform research into
economic value. It’s a broader concept of
innovation, not restricted to industry segments
technologically sophisticated.
If so, where is the “I” of Innovation
in “B.N.D.E.S initials”?
The Innovation Dimension at BNDES
•Although the answer is not clearly stated in the monogram, it
can be found in each letter that forms BNDES’s initials
 BANK – Financing is required in order to transform ideas into
value. Equity participation is the most proper financial tool to
risky investments (usually without tangible guarantee)
NATIONAL – Fully harmonized with the Federal Governmental
Industrial Policy. Intends to avoid the “brain drain” from Brazil.
ECONOMIC DEVELOPMENT – Global Competitiveness
imposes to the country's economies constant changes in their
technological basis in order to keep the path of growth and
development
SOCIAL Innovation should not be restricted to large
enterprises with respectable R&D departments. There is a huge
number of SMEs and academic research centers full of
innovative ideas which may be turned into successful
entrepreneurships throughout Brazil, creating income and
qualified jobs.
Innovation: Definition
Revised definition of innovation, considering economic,
organizational and marketing perspectives.
“An innovation is the implementation of a new or
significantly improved product (good or service), or
process, a new marketing method, or a new
organisational method in business practices, workplace
organisation or external relations.”
(Oslo Manual - Version 3)
The objective is to better accommodate service industries and
non-technological innovation
Innovation: Concept
 Innovation can cover:• acquisition of technology





• industrial engineering
Research;
Science;
Technology;
Invention;
Discovery
• industrial design
• capital acquisition
• manufacturing start-up
• marketing for new or improved products
• patent work
• financial and organizational changes
It involves a series of scientific, technological, organizational,
financial and commercial activities
Innovation: Characteristics
It is:
 Uncomfortable
 Risky
It helps to:




Enhance economic growth
Employment - create new and better jobs
Reduce environmental impact
Maintain firms’ sustainability
It requires:




Time
Knowledge
Drive
STIMULATION!
Inputs to Design
BNDES IP Strategy
Governmental Goal 2008:
Increase private R&D/GDP
from 0,51% (2005)
to 0,65% (2010)
Data:
Assess of the features
of Brazilian innovative
firms – PINTEC
Statistics
The goal is to contribute for the upswing of innovation
activities in Brazil and the performance of such activities on a
regular basis.
BNDES Experience:
Discussions regarding the
projects’ merit and
relevance of the innovation
Observing the companies:
Need to improve the firm
innovative capabilities
New Innovation Financing Policy of
BNDES
LINES OF CREDIT
INNOVATIVE CAPITAL
FOCUS ON STRATEGY
TECHNOLOGICAL INNOVATION
FOCUS ON PROJECT
PROSOFT, PROFARMA, PROTVD,
PRO-Aeronautics and Engineering
SPECIFIC SECTORS
 Closed-End Investment Funds and Equity
EQUITY
 Direct operation
 Seed Money
 Only for Micro, Small and Medium Enterprises
CREDIT CARD
NON-REIMBURSABLE
FUNDS
 Among the products: Innovation Services, Certification and IP
Applying Costs
FUNTEC
TECHNOLOGY FUND
support research, development and
innovation projects in nationally
relevant areas
Lines of Credit
Innovative Capital Facility – Focus on
Firm’s Strategy
 Long-term financing and/or subscription of securities
Support companies to develop capabilities to undertake
innovative activities on a regular basis. This includes
investments in tangible capitals, including physical
infrastructure, and intangible capitals.
Such investments must be consistent with the companies’
business strategies and be presented as per the Innovation
Investment Plan model.
Lines of Credit
Technology Innovation – Focus on Project
 Long-term financing and/or equity participation
Support technology projects aiming at the development of new or
significantly improved products and/or processes (at least for the
domestic market) involving technology risk and market
opportunities.
Funds and Equity Participation
Governance
Funds
15 New Funds
CRIATEC
Venture Capital
Private Equity
Capital
Markets
Seed Money
Follow-on
offerings
Initial
Public Offering
Technological Fund – FUNTEC
 Part of BNDES’ annual profit
 Non-Reimbursable Fund
 Beneficiaries:
 Technology Institutes and Supporting Institutions
Support research, development and innovation projects in nationally
relevant areas, allowing taking strategic opportunities for Brazil, enabling
it to take leading positions.
 Strategic areas
 Health
 Renewable Energy
 Environment (control cars and plants emissions).
 IP Negotiation :
 according with BNDES policies
Disbursements to innovation (2008)
US$ MM
Lines of Credit
Specific Sectors Programs
FUNTEC
Investment Funds (2007)
Equity participation (2007)
Machines to SMEs
TOTAL
58
215
33
85
FINAME
150
418
960
• Innovation In Brazil: some figures
Brazil: Highlights
INVESTMENTS IN R&D (%GDP)
ISRAEL
4,70
SPAIN
1,12
SWEDEN
3,89
ITALY
1,10
FINLAND
3,48
RUSSIAN
1,07
JAPAN
3,33
BRAZIL
1,02
SOUTH KOREA
2,99
HUNGARY
0,94
USA
2,62
SOUTH AFRICA
0,86
TAIWAN
2,52
INDIA
0,85
GERMANY
2,46
PORTUGAL
0,80
SINGAPORE
2,36
MALAYSIA
0,69
FRANCE
2,13
CHILE
0,68
CANADA
1,98
TURKEY
0,67
NETHERLANDS
1,78
POLAND
0,57
UNITED KINGDOM
1,78
MEXICO
0,50
CHINA
1,34
ARGENTINA
0,46
Source: OCDE (2007), Ministry of Science and Technology (MCT,2007), World Bank (2006) and RICYT (2006).
Brazil: Highlights
MASTER AND Ph.D. DEGREES
1990
1995
2000
2006
MASTER
5.579
8.982
18.140 29.761
Ph.D.
1.410
2.497
5.344
9.366
MASTER
942
1.202
1.490
1.912
Ph.D.
445
635
821
988
STUDENTS GRADUATED
NUMBER OF COURSES
Source: MCT (2008)
Brazil: Highlights
BRAZILIAN SCIENTIFIC PRODUCTION
NUMBER OF
ARTICLES
% WORLD
18.000
2,50
15.000
2,00
12.000
1,50
9.000
1,00
6.000
0,50
3.000
Source: Institute for Scientific Information
20
04
20
06
19
94
19
96
19
98
20
00
20
02
0,00
19
84
19
86
19
88
19
90
19
92
19
82
0
Brazil: Highlights in innovation
•
Incubators in Brazil (2008)
–
383 incubators:
•
•
339 active, 32 being implemented and 12 projects
85% attached to universities (64% are public)
–
17 research support foundations
–
5,620 enterprises connected to incubators and
responsible for generating 30,000 direct jobs
• The Evaluation of Intangibles Assets
Project
Challenges
for and
BNDES’s
operations:
BNDES
the Knowledge
Era
Knowledge Economy vs Industrial Society
Credit Risk: higher emphasis in the future
New Approach for Evaluating and Monitoring of Projects /
Enterprises / Economic Groups
New factors to be observed: intangible assets
Knowledge Management
Development of Core Competences
IT Tools

Integrated Actions
●
27 ●
Evaluation System and New Metrics
- Focus on Intangible Assets •
•
•
•
•
•
•
•
•
•
•
•
•
Knowledge, Know-how
Governance
Innovation, R&D
Process
Patents and brands
Design
Reputation
Social and environmental accountability
Human Resources
Partnerships (technological, commercial, integration
with Research Institutes and Universities)
Marketing
Value added products
Export drive
BNDES’ Methodology for Intangibles
STRATEGIC
CAPITAL
RELATIONSHIP
FINANCIAL CAPITAL
CAPITAL
CORPORATE
GOVERNANCE
CAPITAL
INTELLECTUAL
CAPITAL
INNOVATION AND
PROCESS CAPITAL
RATING FOR INTANGIBLE CAPITAL
INTELECTUAL
CAPITAL
Illustrative
INNOVATION
CAPITAL
RELATIONSHIP CAPITAL: CUSTOMER SATISFACTION
RELATIONSHIP CAPITAL: BARGAIN POWER
RELATIONSHIP CAPITAL: NETWORKS AND ALLIANCES
1
2
3
4
• Develop long • Develop long-term
• Has
• Has a good
term
relationships with
weak
transactional
relationships
suppliers and
relations
relationship
with
suppliers
partners...
with
with
and clients,
• Establish
suppliers
suppliers
adapting
partnerships with
and
and clients
products and
companies in
clients
processes to
unrelated
maximize
value on the
entire supply
chain
business to
capture synergies
and growth
opportunities
5
• Develop relationships...
• Establish partnerships...
• Cooperation and
alliances are at the core
of the business model,
leveraging
competencies of each
agent to optimize and
maximize returns over
the entire network
• Feedback and
improvement
56 evaluate
items
IC Rating:
76
●
30 ●
Innovation and Creativity in Brazil
New National Cultural Heritage Treasuries :

Bossa Nova Music

Flamengo’s supporters

Minas Cheese

The Brazilian Development Bank
www.bndes.gov.br
THANKS!