Oral presentation of paper for the 22nd IAMOT congress

1. Comparative analysis of
public policies for innovation
in the aerospace industries in
Brazil and Canada
Authors: Dr. Fabiano Armellini – EPUSP Brazil
Dr. Catherine Beaudry – Poly Canada
Dr. Paulo Carlos Kaminski – EPUSP Brazil
Paper # 1569684247
International Association for Management of Technology
IAMOT Congress – 2013
April 15, 2013

2. Introduction
2
Paper originated from collaborative
research between Escola Politécnica da
USP and École Polytechnique de
Montréal to analyze the impact and
applicability of open innovation tools
within product development in the
aerospace industry
22 Brazilian (São Paulo) and 31
Canadian (Montréal) aerospace
companies were interviewed from
October/2010 and December/2012

3. Triple helix
• The theory of systems of innovation
(SI) studies the flows of technologies
and information among people,
enterprises and institutions;
• This theory influences how policy
makers regard the innovation
process;
• The triple helix model from Sábato
and Botana (1968) gives a
comprehensive undertanding of SI
Theorectical background – Systems of innovation
3

4. Innovation policy is a “public action that influences technical change and other kinds
of innovations [which includes] elements of R&D policy, technology policy,
infrastructure policy, regional policy and education policy” (Edquist, 2001: p.220)
Theorectical background – Innovation public policies
4
• Tax incentives
• Funding
• Financing
• Non-pecuniary support (NPS)
Policy types

5. Brazil (São José dos Campos/SP)
• Aerospace is a strategic segment
• 2 sector funds (CT-ESPACIAL and CT-
AERO) for STI-enterprise
collaborative projects
• Special taxation rules for the
aeronautic sector (RETAERO)
• Aerospace is included in all FINEP
“Subvenção econômica” programs
(including the currently open one)
• Public R&D structure in São José dos
Campos (CTA, ITA etc)
• Innovation policies in Brazil are
relatively new and are still under a
process of maturization and
consolidation
Canada (Montréal/QC)
• Aerospace is strategic for the
Province government, but not to the
Federal
• Innovation policies in Canada are
mostly market-oriented (i.e., do not
privilege specific sectors)
• R&D tax credits represents roughly
55% of the total public expenditure
to support business R&D
• Aerospace agencies (CSA and DRDC,
for example) count with own budget
to fund R,D&I
• SADI financing program is the largest
aerospace-specific program
• Rich supply of knowledge to residing
companies
Public policies for aerospace
5

6. Sample characterization
6
Note: all percentages
are in terms of
number of plants, not
in terms of revenues

7. Funding and public sponsorship
7
R&D Funding
Public policies

8. Crictical analysis
8
• Companies in Quebec use more government support in comparison to
Brazilian companies:
– Exception to R&D funding programs, due to the FINEP “Subvenção
Econômica” program
• Reasons:
– (1) the novelty of such programs in Brazil
– (2) the restrictions in these programs that prevent companies from
being eligible to the benefits, and
– (3) the organizational deficiencies in the companies that hinder access
to such programs.
• In Quebec, where these support programs are more mature and
established than in Brazil, they already show some positive influences in
the organization of firms, although there is room for improvement.

9. Main references
CHESBROUGH, H.W. (2003a) Open innovation: the new imperative for creating and profiting
from technology, Harvard Business School Press.
CHESBROUGH, H.W.; VANHAVERBEKE, W.; WEST, J. (eds.) (2006) Open innovation: researching
a new paradigm, Oxford University Press.
EDQUIST, C. (2001) Innovation policy – a systemic approach, in: ARCHIBUGI, D.; LUNDVALL, B.A.
(eds.) (2001) The globalising learning economy: major socio-economic trends and
European innovation policy, Ch. 12, pp. 219-238, Oxford University Press.
EMERSON, D. (2012) Beyond the horizon: Cadada’s interests and future in aerospace,
Aerospace review mandated by the Government of Canada, Vol. 1.
FIESP (2009) Manual dos instrumentos da política de desenvolvimento produtivo – PDP,
Federação das Indústrias do Estado de São Paulo.
GASSMANN, O.; ENKEL, E. (2004) Towards a theory of open innovation: three core process
archetypes, Proceedings of the R&D Management Conference, Lisbon, Portugal, July 6–9,
2004.
OECD (1997) National innovation systems, Organization for Economic Co-operation and
Development.
OECD; EUROSTAT (2005) Oslo manual: guidelines for collecting and interpreting innovation
data, 3rd edition, Organization for Economic Co-operation and Development.
SÁBATO J.A.; BOTANA N. (1968) La ciencia y la tecnología en el desarrollo futuro de América
Latina, Revista de la Integración, INTAL, Vol.1, No.3, pp. 15-36. 9

10. Dr. Fabiano Armellini – farmellini@usp.br
Dr. Paulo Carlos Kaminski – pckamins@usp.br
Escola Politécnica da USP
Departamento de Engenharia Mecânica
Dr. Catherine Beaudry – catherine.beaudry@polymtl.ca
École Polytechnique de Montréal
Département de mathématiques et de génie industriel
Obrigado! Thank you! Merci!