Assessment of the impacts of Innovation Grants in Brazilian States

Abstract

Goal: This article presents an assessment of the impacts of the “Research in Companies Support Program (PAPPE): Economical Subvention to Innovation”, in the decentralized modality, i.e., projects contracted in the states of the Brazilian federation. Considering the high opportunity cost of the PAPPE program, it was deemed important to evaluate how the financed projects impacted the three dimensions (economic, social and environmental) of sustainable development. Methodology: Study was based on literature review on innovation grants; interviews with one Finep technician and technicians from Fapes, Fapesc and Sebrae-PR; and documental research and analysis of 53 projects carried out in the states of Espírito Santo, Paraná and Santa Catarina, from 2009-2013. Descriptive analysis was conducted for comparing performance of the three states.  Results: Under the economic dimension, the PAPPE program enhanced the ability of funding recipients to compete on a national level. However, there was no evidence of impact on the social and environmental dimensions. Limitations of the investigation: This research is restricted to three Brazilian states, chosen due to the homogeneity of project types and the interest of the researchers, with a focus on the state of Espírito Santo. Practical implications: Although both social and environmental dimensions are not explicit in the scope of the PAPPE program, the assessment of these dimensions should be included in the design and evaluation of any policy sponsored by public funding, since they are critical to the country.