Education, Information Technology And Innovative Services: The Porto Digital Case And Opportunities For Services Export From Pernambuco, Brazil
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Education, information technology and innovative services: the Porto Digital case and opportunities for services export from Pernambuco, Brazil Cláudio Marinho Porto Marinho Ltd. Northeast Brazil/South Africa Business Mission Johannesburg October 20, 2009
Where are we? In S th Africa South Af i or Northeast Brazil?
Comrade Leader Prisoner Negotiator Statesman
Mandela
People (culture, history,
geography) make the difference: territory (space organized g byy men and women) creates value. Th world The ld is i nott flat. fl t 4
Cl t , local Clusters l l systems t off
innovation, regional innovation g governance… International competition between regions, companies against companies in global value chains where innovation is the key word. 5
The new global geoeconomy
Brazil: size matters Countries with area > 5 million km2
Countries with population > 150 million
Bangladesh Rússia
Nigéria Paquistão
EUA
Brasil Austrália
Índia
China
J ã Japão
Canadá
França ç
Brazil is a BIG country
Alemanha
Indonésia
México
Espanha
Países baixos bai os
Itália
Reino Unido Coréia do Sul
Countries with GDP > USD 600 billion
Fonte: MIC (Brasil & Parceiros 2005)
Brazil is 77% urban
A great challenge/opportunity for Brazil... ...is how to deal conveniently with the crowding-out effect of the Chinese economy on our natural resources... ...and how to negotiate a joint strategy with the BRIC countries (+ South Africa and hopefully p y Angola) .
Presidents Zuma and Lula (photo: Ricardo Stuckert)
I Innovation ti : Brazilian B ili achievements
Brazil has created the most competitive tropical agriculture of the world
30ºN Cancer
Equator
30ºS Capricorn
Since the end of the XIX century the Brazilian government has a special interest in supporting agriculture R&D
Brazilian trade balance 4 1 ,9
40 3 7 ,2
30
AGRIBUSINESS
U S $
b i llio n
20
10
4 ,7
TOTAL 0
-1 0
OTHERS
-2 0
-3 0 80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05*
* nov/2004 to october/2005 Source: Agriculture Ministry
Productivity x agriculture land Brazilian 2005/06 grains production: 125 million tons 220 210
Production:
200
Total growth : 96%
190
Annual average : 4,9%
ÍN D IC E
180 170
Area:
160
T t l growth: Total th 28,5% 28 5%
150
49 million has
Annual average: 1,8%
140
125 million tons
130 120 110 100 90 9 0 /9 1
9 1 /9 2
9 2 /9 3 9 3 /9 4
9 4 /9 5 9 5 /9 6
CROPS: cotton, corn, rice, soybean, among others
9 6 /9 7
9 7 /9 8 9 8 /9 9
9 9 /0 0 0 0 /0 1
0 1 /0 2
0 2 /0 3 0 3 /0 4 0 4 /0 5 *
Source: Agriculture Ministry
Brazil: agribusiness and sustainability
Source: VEJA magazine, 03/03/2004
Expansion of the agriculture area in Brazil
NORTHEAST NORTH
CENTER WEST
SOUTHEAST
SOUTH Source: ANFAVEA, 2004
The new
internationalizaton of
Northeast Brazil: intensive in capital, technology modern technology, services and logistics
The largest g and the best Technology gy Park / Innovation Habitat in Brazil
R if – Pernambuco Recife P b – Brazil B il
What is Porto Digital? LLocated t d iin the th old ld downtown d t Recife, R if Porto P t Digital Di it l iis acknowledged as the largest technology park in Brazil ((ATKearney, y, 2005)) and as the best technology gy ppark / innovation habitat in the country (Anprotec, 2007) P Porto t Digital Di it l is i also l kknown as a model d l ffor iimplementing l ti public bli policies in economic development
What is Porto Digital? Porto Digital has deployed many innovative initiatives since its conception in 2000. One of the most important is its governance model – carried out by a non non-profit profit public public-private private organization (NGPD) operating under contract with the State Government of Pernambuco to foster the development of a Recife IT cluster.
Why in Pernambuco? Strategic location N th t Northeast AREA – km² POPULATION GDP*
1.5 million 51.6 million US$ 124 billion
Pernambuco AREA – km km² POPULATION GDP*
100.000 8 million US$ 28 billion
Brazil AREA – km² 8.5 million POPULATION 184 million GDP US$ 1,655 billion
Source: IBGE – Brazilian Institute of Geography and Statistics, 2007. * CONDEPE/FIDEM – Pernambuco State Agency of Planning and Research , 2005.
Why in Recife, Pernambuco? Strategic location 300km ((~200 200 miles) 4 state capitals 3 international airports 2 regional airports 4 international ports 12 million people More than 35% of Northeast GDP 600km (~400 miles) 800km (~500 miles) 7 state capitals 5 international airports 6 international ports 20 million people 90% of Northeast GDP
Porto Digital, Digital 2009... 2009 Pernambuco IT C GDP in 2007 (estimate): U$ 1,2 bi (3,6% of Pernambuco’s GDP)
U$ 400 million in software
U$ 225 million in Porto Digital
120 companies 4.000 IT employees (70% with higher education d ti andd 46% with ith up tto 25 years)) Salary average – U$ 1,4 mil (3x Recife’s salary average) an innovative cluster governance
Porto Digital A short portfolio of services Software Development p ((solutions & pproducts)) Management Finances Health Security S it Transportation & Traffic Management
Games N Neural l Networks N t k / AI E-business Mobility and Wi-Fi Information Security Infrastructure and Connectivityy Outsourcing Education & Research
ITBC2
CESAR NGPD CEE
ITBC1
SDEC
SECTMA
Porto Digital/The disembarkment of a new economy in the old port area of Recife
The sweet spots
H Human capital it l: the th Brazilian challenge
Brazil: Ministry of Education From 1909 through 2002 2002, the Brazilian Government has built 140 t h i l schools. technical h l From F 2002 to t 2010, the Ministry of Education is investing more than US$ 400 million in the construction of 354 new technical schools for 500,000 students. students
Brazil: National Industry Confederation In the period 2008-2010, the Brazilian industrial association, association in cooperation with the Ministry of Ed Education, ti will ill offer ff 16,2 16 2 million illi new opportunities for education in the basic, professional and technological levels.
Brazil: National Commerce Confederation In the period 2008-2010, the Brazilian commercial association, association in cooperation with the Ministry of Ed Education, ti will ill offer ff 9,1 9 1 million illi new opportunities for education in the basic, professional and technological levels.
The Pernambuco experience p with human capital p initiatives
Cin: many qualified people make
th difference the diff
• 65 professors with PhDs • 220 hired researchers in R&D projects • + 1600 students – 432 in academic masters courses, 109 in doctoral studies, 82 in professional masters
SEBRAE: technical assistance to SMEs– more then 700 points of presence all over Brazil
Opportunities for partnerships in South Africa
CEAP: microcredit – more than US$ 105 million lent in 10 years SESC: education, culture and social services – more then 27 million people assisted in 2008 SENAC: technical courses in
commerce, services i and d ttourism i – in 2008, more than 12,000 students were being b educated d d (including ( l d higher h h education courses in fashion design, administration etc.)
Are our strengths also good for your business or i tit ti ? institution? Can we have win win-win win partnerships?
“Don´t address their brains. Address their hearts.” (Nelson Mandela, in Playing The Enemy, John Carlin)
by Flickr
You are welcome to Northeast Brazil!
Cláudio Marinho
cmarinho@gmail com [email protected]
Where are we? In S th Africa South Af i or Northeast Brazil?
Comrade Leader Prisoner Negotiator Statesman
Mandela
People (culture, history,
geography) make the difference: territory (space organized g byy men and women) creates value. Th world The ld is i nott flat. fl t 4
Cl t , local Clusters l l systems t off
innovation, regional innovation g governance… International competition between regions, companies against companies in global value chains where innovation is the key word. 5
The new global geoeconomy
Brazil: size matters Countries with area > 5 million km2
Countries with population > 150 million
Bangladesh Rússia
Nigéria Paquistão
EUA
Brasil Austrália
Índia
China
J ã Japão
Canadá
França ç
Brazil is a BIG country
Alemanha
Indonésia
México
Espanha
Países baixos bai os
Itália
Reino Unido Coréia do Sul
Countries with GDP > USD 600 billion
Fonte: MIC (Brasil & Parceiros 2005)
Brazil is 77% urban
A great challenge/opportunity for Brazil... ...is how to deal conveniently with the crowding-out effect of the Chinese economy on our natural resources... ...and how to negotiate a joint strategy with the BRIC countries (+ South Africa and hopefully p y Angola) .
Presidents Zuma and Lula (photo: Ricardo Stuckert)
I Innovation ti : Brazilian B ili achievements
Brazil has created the most competitive tropical agriculture of the world
30ºN Cancer
Equator
30ºS Capricorn
Since the end of the XIX century the Brazilian government has a special interest in supporting agriculture R&D
Brazilian trade balance 4 1 ,9
40 3 7 ,2
30
AGRIBUSINESS
U S $
b i llio n
20
10
4 ,7
TOTAL 0
-1 0
OTHERS
-2 0
-3 0 80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05*
* nov/2004 to october/2005 Source: Agriculture Ministry
Productivity x agriculture land Brazilian 2005/06 grains production: 125 million tons 220 210
Production:
200
Total growth : 96%
190
Annual average : 4,9%
ÍN D IC E
180 170
Area:
160
T t l growth: Total th 28,5% 28 5%
150
49 million has
Annual average: 1,8%
140
125 million tons
130 120 110 100 90 9 0 /9 1
9 1 /9 2
9 2 /9 3 9 3 /9 4
9 4 /9 5 9 5 /9 6
CROPS: cotton, corn, rice, soybean, among others
9 6 /9 7
9 7 /9 8 9 8 /9 9
9 9 /0 0 0 0 /0 1
0 1 /0 2
0 2 /0 3 0 3 /0 4 0 4 /0 5 *
Source: Agriculture Ministry
Brazil: agribusiness and sustainability
Source: VEJA magazine, 03/03/2004
Expansion of the agriculture area in Brazil
NORTHEAST NORTH
CENTER WEST
SOUTHEAST
SOUTH Source: ANFAVEA, 2004
The new
internationalizaton of
Northeast Brazil: intensive in capital, technology modern technology, services and logistics
The largest g and the best Technology gy Park / Innovation Habitat in Brazil
R if – Pernambuco Recife P b – Brazil B il
What is Porto Digital? LLocated t d iin the th old ld downtown d t Recife, R if Porto P t Digital Di it l iis acknowledged as the largest technology park in Brazil ((ATKearney, y, 2005)) and as the best technology gy ppark / innovation habitat in the country (Anprotec, 2007) P Porto t Digital Di it l is i also l kknown as a model d l ffor iimplementing l ti public bli policies in economic development
What is Porto Digital? Porto Digital has deployed many innovative initiatives since its conception in 2000. One of the most important is its governance model – carried out by a non non-profit profit public public-private private organization (NGPD) operating under contract with the State Government of Pernambuco to foster the development of a Recife IT cluster.
Why in Pernambuco? Strategic location N th t Northeast AREA – km² POPULATION GDP*
1.5 million 51.6 million US$ 124 billion
Pernambuco AREA – km km² POPULATION GDP*
100.000 8 million US$ 28 billion
Brazil AREA – km² 8.5 million POPULATION 184 million GDP US$ 1,655 billion
Source: IBGE – Brazilian Institute of Geography and Statistics, 2007. * CONDEPE/FIDEM – Pernambuco State Agency of Planning and Research , 2005.
Why in Recife, Pernambuco? Strategic location 300km ((~200 200 miles) 4 state capitals 3 international airports 2 regional airports 4 international ports 12 million people More than 35% of Northeast GDP 600km (~400 miles) 800km (~500 miles) 7 state capitals 5 international airports 6 international ports 20 million people 90% of Northeast GDP
Porto Digital, Digital 2009... 2009 Pernambuco IT C GDP in 2007 (estimate): U$ 1,2 bi (3,6% of Pernambuco’s GDP)
U$ 400 million in software
U$ 225 million in Porto Digital
120 companies 4.000 IT employees (70% with higher education d ti andd 46% with ith up tto 25 years)) Salary average – U$ 1,4 mil (3x Recife’s salary average) an innovative cluster governance
Porto Digital A short portfolio of services Software Development p ((solutions & pproducts)) Management Finances Health Security S it Transportation & Traffic Management
Games N Neural l Networks N t k / AI E-business Mobility and Wi-Fi Information Security Infrastructure and Connectivityy Outsourcing Education & Research
ITBC2
CESAR NGPD CEE
ITBC1
SDEC
SECTMA
Porto Digital/The disembarkment of a new economy in the old port area of Recife
The sweet spots
H Human capital it l: the th Brazilian challenge
Brazil: Ministry of Education From 1909 through 2002 2002, the Brazilian Government has built 140 t h i l schools. technical h l From F 2002 to t 2010, the Ministry of Education is investing more than US$ 400 million in the construction of 354 new technical schools for 500,000 students. students
Brazil: National Industry Confederation In the period 2008-2010, the Brazilian industrial association, association in cooperation with the Ministry of Ed Education, ti will ill offer ff 16,2 16 2 million illi new opportunities for education in the basic, professional and technological levels.
Brazil: National Commerce Confederation In the period 2008-2010, the Brazilian commercial association, association in cooperation with the Ministry of Ed Education, ti will ill offer ff 9,1 9 1 million illi new opportunities for education in the basic, professional and technological levels.
The Pernambuco experience p with human capital p initiatives
Cin: many qualified people make
th difference the diff
• 65 professors with PhDs • 220 hired researchers in R&D projects • + 1600 students – 432 in academic masters courses, 109 in doctoral studies, 82 in professional masters
SEBRAE: technical assistance to SMEs– more then 700 points of presence all over Brazil
Opportunities for partnerships in South Africa
CEAP: microcredit – more than US$ 105 million lent in 10 years SESC: education, culture and social services – more then 27 million people assisted in 2008 SENAC: technical courses in
commerce, services i and d ttourism i – in 2008, more than 12,000 students were being b educated d d (including ( l d higher h h education courses in fashion design, administration etc.)
Are our strengths also good for your business or i tit ti ? institution? Can we have win win-win win partnerships?
“Don´t address their brains. Address their hearts.” (Nelson Mandela, in Playing The Enemy, John Carlin)
by Flickr
You are welcome to Northeast Brazil!
Cláudio Marinho
cmarinho@gmail com [email protected]
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