Technological specialization

Technological specialization of countries: rationale and approach. Patent analysis as a methodology for studies of technological specialization. Patent Analysis for Technological Specialization of Brazil and its dynamics: results and discussion.

Рубрика Международные отношения и мировая экономика
Вид дипломная работа
Язык английский
Дата добавления 18.08.2018
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The development of Science and technology inside Brazil have two types of main actors working for the S&T development inside the country; The public and private institutions which are very much connected and aimed for the development.

Within the public agents working for S&T, the Ministry of Science, Technology, Innovation and Communications of Brazil (MCT) takes an important part on coordinating the activities of the field. It was created in 1986, and it leaded the country to have a well-developed scientific and technological organization, with basic and applied research being intensively carried out in public universities, research centers and institutes. The majority of the funding for research in Brazil comes from governmental sources. According to Rapini, Chiarini and Bittencourt (2013), in Brazil the main locus of knowledge production is the public universities and research institutes.

Under the Ministry of Science and Technology (MCT) there are several agencies that promotes the development of technologies and science, as well as being channels for the funding and incentives of projects and technologies.

The three main agencies that are related to the development of new technologies and incentives to science and research are and the National Council for Scientific and Technological Development (CNPq), the Federal Agency for Support and Evaluation of Higher Education (CAPES) and the Sгo Paulo Research Foundation (FAPESP). CNPq and CAPES are funded directly by the MCT while FAPESP receive its funding by the Sгo Paulo state government. These institution and their roles are listed below:

- National Council for Scientific and Technological Development (CNPq)

The Brazilian National Council for Scientific and Technological Development (CNPq) is an institute founded in 1951, dedicated to the formation of human resources, such as scientific researches and promotion of scientific and technological research in the country.

- Federal Agency for Support and Evaluation of Higher Education (CAPES)

CAPES was founded in 1951 as an effort of the MCT to promote the formation of higher education inside the country. The institution coordinate efforts to improve the quality of Brazil's faculty and staff, releasing grants to develop programs with this purpose. CAPES is particularly concerned with the training of Doctoral candidates, Pre-doctoral short-term researchers, and Post-doctoral Scholars.

- Sгo Paulo Research Foundation (FAPESP)

FAPESP is an institute developed by the Sгo Paulo state in order to foment scientific research in the country. The foundation release grants to programs related to research, education and innovation, both in private and public areas, supporting not only researches, but also companies installed in the state.

Apart from these three organizations that acts with the general development of science, technology and innovation, there are several other agencies, that also works under the ministry, focusing on specific fields of technology development. Some of the most relevant institutions are listed below:

- Brazilian Innovation Agency (FINEP)

- National Nuclear Energy Commission (CNEN)

- National Institute of Technology (INT)

- Brazilian Center for Physics Research (CBPF)

- National Institute of Amazonian Research (INPA)

- National Institute for Space Research (INPE)

- Brazilian Space Agency (AEB)

- Brazilian National Laboratory of Scientific Computation (LNCC)

- Brazilian National Institute of Pure and Applied Mathematics (IMPA)

- Brazilian National Laboratory of Synchrotron Light

- Renato Archer Research Center (CTI)

Some public universities also have their own agencies, foundations and separate funds, which are managed with the purpose of supporting their faculties and students with regard to research and development of technological innovations.

When it comes to private institutions, particularly in non-profit non-governmental organizations, can also develop the field inside the country. According to Nelson (1990), private companies fund research at an university or scientific institution in order to receive some sort of advantage access to that research or its findings. With that thought, university research has been increasing its contribution to firms innovative activities and as a counterpart firms are investing in the development of these technologies. These companies aims to develop R&D projects that goes being the theoretical analysis and become real products for the company or for the market.

Within the companies that are investing in industrial research inside the country, Petrobras, (oil and refining) Vale (mining and extraction) and Embraer (Aircraft industry) are worth mentioning.

Petrobras invests in research and development activities in technologies, through various Brazilian academic institutions. The company has partnership with over 100 universities and research institutes. Petrobras generates results that can be applied directly to its business. According to the company's sustainability report of 2015, Petrobras filed for 68 patents and 83 were granted and registered in Brazil and other countries, in this year. Petrobras is also responsible for the foundation of the Research and Development Center (Cenpes), which had a high impact in the development of technologies for the exploration of an oil layer called pre-salt, allocated deep under the sea level.

Vale participates in the R&D activity with the intention of generating changes in its business structure, bringing development of new technologies and smart solutions regarding environmental problems. The Vale Technological Institute (ITV) was created in 2009 for developing medium to long-term solutions to improve the company's performance, from the mining process until the final product. ITV, specializes in issues related to sustainable development and on subjects connected with mining. The company also have partnerships with external institutions, developing projects within its areas of interest, that shifts around energy, eco-efficiency and biodiversity, and ferrous processes for the steel industry.

Another example of a national successful private company that is investing more and more every year into science and technology development on the aircraft sector, is Embraer. The company innovates in the aircraft development process, being the leader of the segment in the Brazilian Market. Embraer is specialized in the production process of commercial, executive, military and agricultural aircrafts.

Not only national companies invest in the development of new technologies inside the country, a good example of foreign companies that have research institutions in Brazilian territory is IBM. The company has two centers of which have been in Brazil since 2011, one in Rio de Janeiro and the other in Sгo Paulo. In 2017, IBM began the work of its Nano Lab at its Rio R&D center, where it will concentrate initiatives and partnerships on the areas of healthcare, farming, and petroleum/natural gas.

In order to promote private investments in S&T development, it is not unusual for the government of many countries to grant incentives to the companies for investing in this development. According to Marcovitch et al. (1991), some of the most common incentives introduced in these countries, shifts around deductions from taxable income of expenditures in R&D, rapid depreciation of machines and equipment, and reductions in import taxes. When it comes to the Brazilian scenario, the main incentives for companies to invest in S&T inside the country are tax reduction for equipment importation, deduction of costs with employees and royalties paid to third parties, tax reductions between other incentives. These incentives stimulates the companies to invest great part of their revenues in outsourcing their research and development needs while funding S&T institutions.

The changes in the composition of the R&D investments of Brazilian companies, shows that the importance of outsourcing the researches for new technologies has been growing over the years.companies are tending to make partnerships, allocating investments in external institutions in order to bring development of their new products, and processes. As a result, companies are reducing the volume of funding destined for internal and expanded the percentage dedicated to partnerships with research institutes and with other companies.

Another strategy developed inside the country that is worth mentioning is the creation of the sectorial funds program. This approach was developed in order to support the R&D development in Brazil, by allocating resources into pre-determined and focused sectors of the industry. According to Sб (2005) this program was developed in 1999 with the collaboration of several ministries to support research in several universities and research institutions in twelve different areas of thematic funds: Petroleum and natural gas, biotechnology, energy, mineral resources, hydro resources, agribusiness, health, transportation, telecommunications, space, aeronautics, and information technology. The strategies to support this area created by this program, are still in progress nowadays.

The sectorial funds strategy, tries to integrate industry to the public institutions R&D, focusing on the needs of each one of the sectors of industry and inducing business-institution collaboration with the aim to resolve the sectors need for innovation. Sб (2005) affirms that this strategy has been the response for the problem of how to increase the participation of private R&D inside the country.

The institutes and programs listed above, despite of not being a complete summary of what has been current developed in the country, mostly because of the huge amount of information that can be gathered about them, can illustrate the evolution of the field in the past years and how the policies are affecting its development.

There are many institutional and economical challenges for producing new technology in Latin America nowadays, and this same challenges also applies to Brazil. Hernan (2007) when analyzing the technological development process of the countries that are members of the MERCOSUR, noted that a connection between technology developing and productive sectors is lacking, also, the formulation of effective policies for the field, prevents the creation of opportunities for fruitful activities. Hopefully, the new partnerships within company and research institutions, and the further organization of the public institutions for bringing technological development to the country can positively change this scenario.

2.3 Research Profile of Brazil: Publications Analysis

The analysis of publications in Brazil is strongly connected to the technological development of the country. Publications are one of the R&D outcomes and might be considered as pre-conditions and necessary ground for new technologies development. By analyzing the research activity, it can be observed which are the areas that have the highest number of publications, and further assist in the assessment of the specialization profile of the country.

According to the Web of Science database, there was a total of 376 thousand scientific publications published by Brazilian authors in 2007-2016 (Figure 5).

Figure 5: Total Number of Publications in Brazil (2007-2016).

Source: The Web of Science

The progress when compare 2007-2011 to 2012-2016 is 19%, which means that the improvement of the institutional framework and financial support turned into better results.

In continuation of the study of the institutions that have the most relevant impact in the development of S&T and in the promotion of scientific research inside the country, the number of publications that received funding generated by each of the main Brazilian institutes was calculated. As an effort to identify the key actors for the development of scientific research inside the country, the chart below allows us to visualize the total number of publications funded by each of the three main Brazilian institutes.

Figure 6: Major Institutions for incentive of scientific research in Brazil (2007-2016).

Source: The Web of Science

Two other important indicators of outcome of S&T that assists in the formation of the general framework and current situation of S&T inside a country, are the number of Brazilian publications in global accessed scientific journals and also, from the total number of publications, the amount that received a great number of citations worldwide.

First, Figure 7 demonstrates that there was an improvement of over 90% of the number of Brazilian publications that were indexed internationally.

Figure 7: Number of Brazilian articles indexed in Scopus. (2007-2016).

Source: National Science Indicators (NSI) of Thomson Reuters Scientific INC e SJR SCImago Journal & Country Rank

This improvement, not only makes the country the major contributor for the international literature development in Latin America, but also increases its representation of the worldwide total scientific publications production. During the studied years, Brazil improved it's representation of the worlds production of publication from 1.74% in 2007 to 2.48% in 2016. An improvement of 100% of representation in 10 years.

Figure 8: Representation of the total number of Brazilian articles indexed in Scopus worldwide (2007-2016).

Source: National Science Indicators (NSI) of Thomson Reuters Scientific INC e SJR SCImago Journal & Country Rank

From the total amount of publications, it is also important to analyze the most relevant ones as an indicator of the science development inside the country. In order to do so, the publications with most citations were sorted out by the fields in which each one of them were published. The results turned out 1708 publications with high relevance of citations making it is possible to visualize the fields that are producing the most impactful researches in a global scale (Figure 9).

The fields of publication with the greatest amount of citations are in the Health sector with General Medicine and Oncology, Multidisciplinary Sciences, Astronomy and Physics. This information can be further utilized in a comparison of these main fields of publications with the domains that the country is being impactful.

The analysis of the publication activity of Brazilian authors demonstrates that the amount of scientific knowledge which might then be transferred into new technologies development process has increased considerably in recent years. Together with an improvement of S&T funding and more favorable institutional framework, it might be an indicator of better chances Brazil now has to enhance its technological development so that to become more competitive on the global arena.

Figure 9: Most relevant Publications fields between Brazilian Articles Indexed by Scopus (2007-2016).

Source: The Web of Science

Chapter 3. Theoretical and Methodological Foundations of the Research

3.1 Current studies in technological development and technological specialization of Brazil

Brazil is one of the fastest emerging economies in the world, relying on a mixed economy model and on import substitution to achieve economic stability and development. The science and technology development inside the country is a great part of this economic stability. The historical development of the S&T field in Brazil, according to Machado and Oliveira (2001) can be attributed to 3 factors:

- The enhanced enrollment in universities;

- The expansion in the number of graduates from higher education;

- The increase in the Brazilian contribution to publications in international scientific journals.

These authors analyzed the Brazilian investments in the S&T field and these three factors can certainly relate to the creation of policies for the development of technological research centers while also developing partnerships with universities to promote and fund scientific research, which leads to an increased number of publications not only in national territory but also in international journals.

The history of technological development in the emerging countries, can have more differences than similarities with the processes presented by developed countries. Some studies like the one from Furtado and Carvalho (2005) defends that the patterns of technological intensity of emerging countries` industries like the ones in Brazil, differs from the developed countries when analyzing indicators such as R&D expenditure by value added, the R&D expenditure structure and of Human Resources by sector of the industry.

These differences in technological efforts points towards to very distinct sectorial patterns. Developed countries, have a scenario of open economy, with international economical cooperation, inserted in a tight competitiveness environment and are mostly specialized in the manufactory of medium-to-high intensity technological products.

In the other hand, less developed countries have relatively closed economies, with limitations of external economic pressures and the industry and technology efforts being developed mostly towards to internal priorities. In other words, the internal needs of emerging economies dictates the path of technological development inside the country.

This example can be applied not only to Brazil, but also to other emerging countries` cases that had a late process of industrialization. With that in mind, there is a lower effort in the efforts towards building a high-tech sector in these countries.

In this context, multinationals tends to lead the segments that have more technological demand. These companies have higher access to technology imports and bases located in developed countries, which facilitates the production of contents in this segment.

Of course, there is always an exception to the rule, and despite the fact that Brazil follows this description in many technological sectors, when it comes to high technology transport materials, Brazil has Embraer representing this exception. The company has gained space in the exports of aircrafts, developing Brazilian technology and becoming one of most distinct national companies since its foundation in 1969.

Another exception could be the case of Petrobras with the diverse researches carried out in the field of oil production that led Brazil to the finding of hydrocarbon reserves under salt layers; the pre-salt. These reserves are allocated deep under the level of water and required the company to develop high technology special machinery so it can be explored. The efforts made of Petrobras in the case of pre-salt, made the country the pioneer into exploring this resource. According to Nishimoto (2012) the exploration of pre-salt can be so intense that can boost the economical position of the country by becoming an international leader in the exploration of natural oil and gas.

The industrial profile of the country shows that the country thrives in the sectors of natural resources exploration, civil construction, textile and agribusiness, the fact that the country is technologically developed in these areas, corroborates with the technological profile of countries that are competitive in lower-to-medium technological sectors. Brazilian industry also explores oil and natural gas, and the metallurgic industry which is very present, specially in iron and steel extraction. With that in mind, these sectors can be the differential of the country to bring economical prosperity and competitiveness in an international scenario.

This view of the exploration of the lower-to-medium technological sectors is one of the key features of Brazil`s economic awakening according to Onis (2008). Stated while characterizing the economical profile of the country, the current position of Brazilian economy is stagnated. In the study of this author, he states that the expansion of exports, the new oil discoveries and the technological development related to it, a greater financial stability combined with lower inflation and political cohesion in the development of policies for economic growth and science and technology development are the recipe for improving the countries` current scenario. Exploring the already strong sectors of industry while trying to consolidate and invest in the not so well-developed sectors can be the path that the country is already trailing to overcome the economic barriers.

Another subject of studies is the topic of Brazil`s potential to overcome the economic issues by exploring natural resources, is the ecosystem provided by the amazon forest. The forest is considered a national and even global treasure, Onis (1992) states that no other country has such a large untapped reserve of land and water unexplored. It is worth mentioning the efforts of the country, in order to create extractive reserves in the Amazon that protects the ecosystem, while guaranteeing the sustainable exploration for those who then have an incentive to protect the forest. This brings under discussion the topic of sustainable development, which is being extensively explored nowadays in the Brazilian literature for the issues that comes with the exploration of natural resources in smart ways that won`t harm the environment.

The use of science and technology for the development of sustainability is a concern of Brazil and also globally. The Brazilian, executive summary of the preparatory meeting for the world Science forum (2013), discussed the topic of the contribution of Brazil in the area of sustainable development, taking under consideration the planning of the STI strategy inside the country. This documents shows the intrinsic relationship between the STI policy making inside the country and the development of technologies and innovations that allows the sustainable exploration of resources inside a country. The importance of establishing a scientific and political cooperation for the development of technological basis and innovative solutions for the sustainable use of natural resources such as the tropical forests, are fundamental to guarantee income generation to the country while promoting ecosystem sustainability.

Бlvarez and Fuentes (2012) investigated how the abundance of natural resources inside a country can influence the technological specialization dynamics. The authors found that resource-rich countries are less likely to have comparative advantage in manufacturing goods and that dynamics in specialization are not necessarily impeded by having natural resources abundance. In other words, this study connects the fact that high-end technological products are less susceptible to be an advantage of countries with a lot of resources, even tough this fact doesn't stops the country to be specialized in different sectors of technology.

The impact of technological specialization in the productive process is an important subject that been under investigation in a number of studies in the field. Weinhold and Rauch (1999) studied specialization in less developed countries, including Brazil. The authors used econometrical analysis and dynamic panel estimation in order to test that if in the less developed countries specialization is positively and significantly correlated with increased manufacturing productivity growth. The study found evidence that specialization in the manufacturing sector increases the rate of growth of manufacturing productivity in less developed countries.

Despite being an important and widely studied field worldwide, and the fact that the technological development studies gaining strength inside Brazil there is not many studies related to the technological specialization topic being developed nowadays in the Brazilian S&T field.

An exception is the study of Carli (2015) that studies the characteristics of the patents filed in Brazil by scientific and technological institutions in order to study partnership and collaboration within these institutions in developing new technologies.

Other efforts to develop the subject inside the country is the article of Miranda (2014), that debates about the role of developing countries in the process of internationalization of economic activities. The idea is that the activity domains and the participation of these countries in a global scale have shifted throughout the years, presenting a strengthening both in magnitude and importance of these countries in an international landscape. This scenario is also present when applied to the Brazilian case, which have increased its participation in the global economy in the recent years.

The previously stablished importance of technological specialization and the fact that the number of publications related to the study of the field in Brazil is not too broad, generates a gap of knowledge in the field. It is fundamental to cover this gap in order to assist the countries` policy making process and also guide investments to the most prominent technological domains, between many other factors. study of patents and specialization inside the country has been gaining more relevance as industries are understanding the importance of these kind of studies.

The fact that there is a recent increase in the focus, and in the importance of developing the technological field inside the country, combined with an increase in public and private investments on the scientific study for technology and innovation development, makes it even more relevant to have studies that minimize the risks of these investments. Technological specialization studies, assists in covering the risks of these investments in order to maximize the effectiveness of the incentives put in S&T by gathering the knowledge of which domains are being the focus of development inside the country.

The efforts put in the development technological specialization studies, compared with the increase of the importance of S&T development inside the country does not match. The lack of studies and knowledge surrounding the field creates a gap in the Brazilian literature. This study offers a framework for filling up this gap, while accessing the capacity of the country to technologically compete in a global aspect, and developing strategies to improve specialization in Brazil.

This study offers to enlarge the current state of research, by using patent analysis, a tool commonly used in similar international studies. Sennes and Britto Filho (2012) states that patents are undoubtedly important for R&D development, and that agencies have been seeking to use patent data as indicators of technological success. With that in mind, this study aims to analyze the changes that occurred in the field over the years and observing the path that technology specialization development is going through for trying to access new trends that might appear in further years, based on the collected patent data information.

3.2 Patent Analysis for Technological Specialization of Brazil: Methodology

In order to achieve the objectives of the study, the tasks to develop the research were divided in two parts. The first part is a quantitative patent analysis, with analyzing patent data available for Brazil between the years of 2007 to 2016 to understand what Brazil is specialized in.

This data was utilized in the calculation of the indicators of technological specialization (C5, C10, RTA) and other relevant indicators to the study, such as: Technology share, Country share and Patent application by technologies, that were also utilized in order to develop the specialization profile of the country. The patent data utilized for the indicators was downloaded from WIPO website database.

The second part consisted in an in-depth patent analysis of these domains in order to understand: Who are the leaders of technology domains; what sectors are they in; and which companies are part of these sectors

The data for the in-depth patent analysis was collected from the ORBIT database, that given the properties of allowing the collection of more detailed information regarding patent data, was the chosen tool to develop this part of the research.

Additionally, all calculations were made as averages of 5 to 5 year (2007-2011 and 2012-2016) in order to avoid biases and outliers in the data behavior. This aggregation of the data in groups of 5 years, also allows a dynamic comparison on the evolution of these indicators, which can better represent the changes and shifts in the specialization of the country.

The first data collected for the study was the number of patents filed in Brazil sorted by technology from the years of 2007 to 2016. The complete table with this data can be consulted in the appendix 1.

The second search for data was to gather information about the total number of patents filed worldwide by technology. The complete table with this data can be consulted in the appendix 2.

The third step for the data collection was to calculate the Technology share that each of the technological domains represent of the total number of patents filed. In order to do so, the number of patents filed in one specific technological domain, was divided by the total number of patents filed. This process was repeated for all the 35 technological domains. A complete table with the results of these calculations can be consulted in appendix 3.

The forth data to be collected was Country Share. In order to collect data for this indicator, the number of patents filed in Brazil in one technological domain was divided by the total number of patents worldwide. This process was repeated for all 35 technological domains, resulting in the percentage that each of the Brazilian patents filed in a technological domain represents of the total worldwide number of patents filed. A complete table with the results of these calculations can be consulted in appendix 4.

The fifth step was calculating the RTA indicator. In order to do so, the average technology share of each technological domain in both periods of 2007-2011 and 2012-2017 was calculated, both for Brazil and Worldwide. By dividing the average national technology share in one domain per the worldwide average technology share in the same domain, the result achieved is the RTA. The rationale for the RTA is presented below, where x is the result of the equation described above:

If x < 1 (Not Specialized) If x=1 (Potential to be specialized) If x > 1 (Specialized)

Figure 10: RTA rationale.

The complete table with the RTA data can be found on appendix 5. In the table the numbers that resulted to be lower than 1 were painted in red, the results close to 1 were painted in blue and the results that turned out bigger than 1 were painted in green, in order to make it easier to visualize the outcomes of this indicator.

The last step was calculating concentration indices. The concentration index C5 was the sum of the 5 most representative technological domains. In order to select these fields the average RTA number of the technological domains between 2007 to 2011 and from 2012 to 2016 were calculated. These results were sorted by size and the 5 most representative numbers were selected in order to be summed and result in the concentration index. The same process was applied for the Concentration index C10 but the cut was made in the 10 most representative domains instead. The results of these calculations can be better observed in chapter 5.

After collecting all data to complete the quantitative patent analysis (first part of the study), this data was analyzed in order to retrieve information on the current technological specialization of Brazil.

A table was developed with the results of the indicators of Technology Share, Country Share and RTA, highlighting the domains that were relevant for each of these indicators.

This combined indicator table, was utilized in order to select the domains to conduct the second part of the research, an in-depth patent analysis. The 2 most relevant domains for each of the indicators was selected, aiming to gather information on the major actors of technological development inside the country.

The data on the assignees of the patent applications that compose each of the technological domains selected was downloaded from Orbit database and analyzed. The time frame selected for this search was form 2012-01-01 until 2016-12-31, this time frame was selected in order to collect the most recent information on this patent data.

A conclusion with the major findings of the research and the current sectors of specialization of Brazil was developed.

Chapter 4. The technological specialization of Brazil and its dynamics: Results and discussion

This chapter shows the results of the data collected from the patent analysis and its indicators, promoting a discussion of the main findings and about the current specialization scenario of Brazil.

4.1 Total Patent Applications by Technology

In order to analyze the data for this indicator, the total number of patents filed in Brazil and worldwide between the years of 2007 to 2016 was collected. With this information, it is possible to observe the evolution of patent activity in the country and make a comparison with the changes that occurred worldwide.

The search of total patent application in Brazil between 2007 to 2016, resulted in a total of 55,219 patents filed in all the 35 domains of technology. From this total, 26,069 of them filed in the first 5 years (2007-2011) and 29,150 filed in the last 5 years (2012-2016). With that data alone it can be noticed an increase of over 10% of the total number of patents filed between the compared periods.

A graphical evolution of this data can be observed in figure 11:

Figure 11: Total Patent Applications in Brazil (2007-2016).

Source: WIPO patent data.

The search of total patent application filed worldwide between 2007 to 2016, resulted in 19,777,147 patents filed in all 35 technological domains. A total of 8,382,163 being filed in the first 5 years analyzed (2007-2011) and 11,394,984 being filed in the last 5 years (2012-2016). With this data it is possible to affirm that the number of patents filed worldwide comparing the two period analyzed increased over 26%.

A graphical evolution of this data can be observed in figure 12:

Figure 12: Total Patent Applications Worldwide (2007-2016).

Source: WIPO patent data.

When a comparison is made, between the dynamics of increase in the number of patents filed in Brazil with the world growth presented worldwide, it can be observed that the rate of growth presented by the country is slower than the world average growth.

Figure 13: Variation of the total number of patent applications in Brazil vs Worldwide (2007-2016).

Source: WIPO patent data.

This rate of evolution of the Brazilian patent applications, despite being positive, doesn`t corroborate with the technological and economic advances presented in the country. With the Brazilian government investing strongly into S&T development inside the country, it was expected that the number of applications in Brazil followed the dynamics of the world growth. Pavitt (1985) states the relation between innovative activities inside the country and its patent activities, where patent activity can be an indicator for innovation. It is certain to assume that the efforts put into the S&T area promoted innovation inside the country, but analyzing the growth of the number of patents in Brazil, it was expected that more efforts into producing new technologies were presented.

This first overview of the data shows a contradictory scenario where the investment in S&T inside the country is strongly rising, the participation of Brazil in an international and globalized economy is more present and the number of publications and scientific research has reached numbers never seen before in national history, but in the other hand we have an economic growth that is slowing down and a level of patent applications that despite presenting an increase, does not follow the world average development.

4.2 Technology Share

When further data is analyzed the percentage of patents applications that is represented in each domain of technology can be assessed. With the technology share indicator it is possible to categorize the types of patent applications in order to have a better picture of the technological domains in which the country is specialized.

In table 2 it is possible to visualize the 10 fields that received the greater number of applications between 2007 and 2011 and the percentage that they represent of the total number of patent application in the country. An analysis of the patent activity on these most representative fields is useful for composing the whole scenario of specialization in the country.

Table 2: Technology Share in Brazil (2007-2011).

Source: WIPO patent data.

The field of other special machinery is the field that attracts the most number of applications inside the country. Schmoch (2008) defines this field as patent applications referring to turning, boring, grinding, soldering or cutting with a focus on metals. The number of applications on this field is no surprise, given the Brazilian industrial profile. The companies of metal extraction and even the oil and gas extraction machinery are strong industries inside the country, that develops new technologies and processes that require patent protection.

Civil engineering comprehends mostly the construction of roads, buildings and basic structure elements. In some cases, a special part of this field also refers to mining activities which is relevant for some countries. Brazil has a strong mining industry, being one of the reasons for the high number of patents being filed under this field, that has a strong connection with metallurgy and also to the creation of special equipment. Another reason for this numbers is that Brazil is growing as an economic powerhouse, and in order to do so, basic infra-structure is needed, being a matter of focus inside the country in the most recent years.

A great part of the development of this basic infra-structure is transport. This field includes all types of transport technology and applications, with automotive technology being dominant. Rail and air transport is also included in this field. The high number of applications on this field may be attributed to the strong presence of automotive multinationals inside the country and the development of Aircraft technology by EMBRAER, a further in-depth analysis might confirm the presence of these companies in this technological domain.

The medical technology field, according to Schmoch (2008) is generally associated with high technology, however, a large part of the field refers to less sophisticated products and technologies such as operating tables, massage devices, bandage, between others. These less complex sub-fields represent a large number of patent applications. The country also presented a high level of publications in the medical sector, both in general medical technology and oncology. The heavy study of these fields, being the leader on scientific research on the country, supports the number of patent applications presented in this indicator.

The field of handling comprises robots, elevators, cranes and packaging devices. This field comprehend a large amount of different technologies and applications, being very heterogeneous. According to Ramos et. al. (2013) Brazil has recent developments on totally automated surgeries, in which there is no direct human intervention and the process is fully conducted by robots. Furthermore Osуrio and Gonзalves (2015) analyzed the 12th, 13th and 14th Latin American Robotics Symposiums, with the current areas of development in the field of robotics inside the country, presenting publications related to activities in Brazil in the topics of: Computers, Airplanes, simulators sonars, object transportation, education, genetics between others.

The domains detailed above represent different areas of technology, which shows a diversity of fields that are being developed inside the country. Pharmaceuticals, Other consuming goods, Furniture/ Games, Basic materials chemistry and Eletrical machinery apparatus/ Energy that were also fields presented in the top 10 domains in technology shares inside the country are from totally different areas of technology.

When a comparison is made between the first 5 years of analysis (2007-2011) and the last 5 years (2012-2016), we can see a stability in the technological domains that represent the greatest technological share of the country according to this indicator.

Table 3: Technology Share in Brazil (2012-2016).

Source: WIPO patent data.

Between this two periods, it can be noticed an small decrease in the fields of medical technology and civil engineering, as well as in handling and Medical technology. The biggest change was the inclusion of Engine Pumps and turbines domain in this list, with the exclusion of The Furniture, games domain.

Engine Pumps and turbines field, covers non-electrical engines for all types of applications, in general applications for automobiles. We can attribute the growth in this field to efforts related to the development of the automobile sector.

The analysis of these fields that had the highest technology share inside the country, and their changes over the period analyzed, shows a heterogeneous pattern of the technology domains.

4.3 Concentration Indexes (C5, C10)

The concentration index C5, comprehends the sum of the 5 most relevant fields of technology share in the country, while the concentration index C10, comprehends the sum of the 10 most relevant fields of technology share.

The data on both C5 and C10, was divided in the concentration level of the first five years analyzed (2007-2011) and the last five years (2011-2016) in order to be possible to observe the evolution of these indicators in this period.

When the Concentration Index C5 is analyzed, the first 5 years presented a concentration of 28,96% with the domains of technology share already previously discussed. The data on the evolution of the index C5 can be observed in table 4:

Table 4: Concentration Index C5 (2007-2011 and 2012-2016).

Source: WIPO patent data.

Analyzing the last 5 years, and the variations of this indicator, it can be observed a slightly small decrease in the percentage of the concentration index C5. The indicator decreased to 28,41%, a total of 0,55% in this 5 year period.

The lack of changes both in the concentration level and in the majority of industries that compose the C5, signs an stability of these domains, which appears to be well-stablished inside the country, with a strong infra-structure and investment.

In order to have a parameter to measure the results of this indicator, the concentration index C5 for developing and developed countries in 2016 was calculated:

Table 5: Concentration Index (C5) of countries in 2016.

Source: WIPO patent data.

With this data, it is possible to assess the position of Brazil in terms of the concentration of its 5 most relevant technologic share domains. Brazil is close to China in terms of concentration C5, but if we compare it with other world economies, it can be observed that country has a lower level of concentration.

When the sample of technological domains on this indicator was enlarged and the concentration Index C10 is analyzed, it resulted in a level of concentration of 52,45% on the first 5 years of the analysis.

Table 6: Concentration Index C10 (2007-2011 and 2012-2016).

Source: WIPO patent data.

When a comparison between the first 5 years and the last 5 is made, the variation that occurred with this index was not much bigger than the C5 given the scale. The variation was of 2,04%, which demonstrates the stability of this indicator.

The parameter for an international comparison of this indicator, was the same utilized for the C5. Below is presented the Concentration Indexes C10, of emerging and developed economies.

Table 7: Concentration Index (C10) of countries in 2016.

Source: WIPO patent data.

In the terms of international comparison, it can be noticed that the country has similar concentration index C10 to the one presented by China in 2016. While Brazil presented a level of concentration of 50,41%, China was close to 52%. When compared to the other nations, the ones analyzed by the study have a much higher Concentration (C10) in comparison to the country.

4.4 Country Share

This indicator comprehends the share of the patents filed in a technological domain in Brazil, compared with the world total applications in the same domain. The data collected keeps track of the evolution of this indicator between 2007 and 2016.

In this period, Brazilian patent activity represented an average of 0,28% of the world total patent applications. The chart below shows the evolution of the representativeness that the countries` patent activity in Brazil have in a global scale.

Figure 14: Total Country Share - Brazil (2007-2016).

Source: WIPO patent data.

According to the most recent data, from 2007 to 2011, the areas of Brazilian Patenting applications that had the largest representativeness worldwide were the areas of: Other Special Machines, Medical Technology, Civil engineering, Transport and Handling. A result very much alike the results brought by the Technology share indicator analysis.

Table 8: Country Share - Brazil (2007-2011) vs (2012-2016).

Source: WIPO patent data.

When compared with the data form 2012 to 2016, this indicator presents a considerable reduction in the percentage of representativeness of the country`s most significant domains in relation with the worldwide total patent application. Furthermore, it can be observed that the domain of Engines, pumps, turbines had a significant improvement as one of the most relevant domains for this indicator.

A better comprehension of the participation of Brazilian patent activity in a global scale can be acknowledged with the Relative Technology Advantage indicator.

4.5 Revealed Technology Advantage

This indicator is calculated by dividing the Country Share of an specific technology per the Total Country Share in an specific period of time. This indicator gives by itself a national perspective compared with the total international data presented in all the 35 technological domains.

In order to make it easier to compare the evolution of each domain during the 10 years of analysis, the average of the years 2007 to 2011 and 2012 to 2016 was calculated. The first 5 years presented resulted in 18 specialization fields, the list of these fields can be found below, sorted by the biggest to the lowest RTA number.

Table 9: Specialized Technological Domains according to the RTA (2007-2011).

Technology

2007-2011

34 - Other consumer goods

2,59

29 - Other special machines

2, 20

18 - Food chemistry

2,12

25 - Handling

2,05

33 - Furniture, games

1,98

19 - Basic materials chemistry

1,80

35 - Civil engineering

1,75

20 - Materials, metallurgy

1,64

23 - Chemical engineering

1,58

27 - Engines, pumps, turbines

1,51

30 - Thermal processes and apparatus

1,50

24 - Environmental technology

1,47

32 - Transport

1,46

12 - Control

1,40

13 - Medical technology

1,30

31 - Mechanical elements

1, 20

16 - Pharmaceuticals

1,07

26 - Machine tools

1,02

Source: WIPO patent data.

The field of other consumer goods, Other special machines, Food chemistry, handling and Funiture/Games were the ones that presented the highest RTA.

The field that presented the highest level of specialization was the field of other consumer goods. This field primarily represents less research-intensive sub-fields, like activities related to the exploration of natural resources, mainly in the primary sector of industrial level. The exploration of raw materials in Brazil, matches the economic, industrial and technological profile developed of the country, this data confirms that the country is specialized in the production of natural resources and derived products.

The domain of Furniture, Games is a part of the field of consuming goods, The other consumer goods are a mix of many different technologies, while this field is specific for the production of furniture and gaming. The high level of specialization here, can be attributed to the natural resource exploration levels of the country.

...

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