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Revista Labor & Engenho L & E
ISSN:2176-8846 v.6, n.3, 2012
CÁRCEL CARRASCO, J.; MARIOTONI, C. A.; NATURESA, J. S. Influences of economic development in the Brazilian energy
efficiency projects. Labor & Engenho, Campinas [Brasil] v.6, n.3, p.92-104, 2012. Disponível em: <www.conpadre.org> e
<www.labore.fec.unicamp.br>.
92
Influences of economic development in the Brazilian energy
efficiency projects
Javier Cárcel Carrasco
Professor/Investigador de la Universidad Politécnica de Valencia; Doctor Ingeniero Industrial; Doctor en Ciencias
Económicas y Empresariales; Ingeniero Industrial y Ingeniero en Electrónica; Ingeniero Técnico en Electricidad.
Valencia [Comunidad Valenciana], España. <fracarc1@csa.upv.es>.
Carlos Alberto Mariotoni
Professor Titular da FEC/UNICAMP, Ph.D., e Mestre em Engenharia Elétrica, Engenheiro Eletricista. Campinas [SP],
Brasil. <cam@fec.unicamp.br>.
Jim Silva Naturesa
Doutor em Engenharia Civil, Mestre em Engenharia Elétrica, Engenheiro Eletricista. Engenheiro da Eletrobras –
Centrais Elétricas Brasileiras S/A. Rio de Janeiro [RJ], Brasil. <jimnaturesa@yahoo.com>.
Abstract
This work has as main goal to present some of the issues regarding the effects of the Brazilian
economy in the effectiveness of national energy efficiency projects in order to provide some guidelines
for optimizing the energy saving actions. The replacement of traditional electric motors with high
efficiency motors has been considered, or that brings innovation and increases the need to search for
new technologies for Brazilian industries. We must consider whether this new paradigm requires a
strong federal government's investment in Brazil in order to allow the implementation of energy
efficiency programs, mainly in small and medium industries. This document is divided into three main
parts. The first part deals with some aspects of the economic crisis. The second presents the most
important data of the National Electricity Conservation (PROCEL) and Energy Efficiency Program of
the ANEEL (National Electric Energy Agency). The third shows data on Small and Medium Industries
and how their energy efficiency programs were affected.
Keywords
Energy efficiency, energy projects, Brazilian industry, electric motors, technological innovation.
Revista Labor & Engenho L & E
ISSN:2176-8846 v.6, n.3, 2012
CÁRCEL CARRASCO, J.; MARIOTONI, C. A.; NATURESA, J. S. Influences of economic development in the Brazilian energy
efficiency projects. Labor & Engenho, Campinas [Brasil] v.6, n.3, p.92-104, 2012. Disponível em: <www.conpadre.org> e
<www.labore.fec.unicamp.br>.
93
Introduction
It has been demonstrated that energy efficiency projects such as the replacement of
standard electric motors by energy-efficiency motors can be looked at as important
Research, Development and Innovation (R&D&I) projects, since they bring with them new
products, and add new knowledge to business entrepreneurs and technicians.
It has become clear that expanding these projects requires incentives – currently the BNDES
(National Bank of Economic and Social Development) and FINEP (Financing Agency for
Studies and Projects) are the most important financers – and effective industrial policies. It
was seen that energy efficiency programs should focus on the MSMBs (Micro, Small and
Medium sized businesses), since this is the class of businesses that is faced with the
greatest technological difficulties: they lack engineers or researchers involved in innovation
and encounter difficulty financing these projects.
Economics aspects
According to the National Confederation of Industries (CNI) the number of hours worked in
production fell 8% from November to December of 2008. Another cause for concern is
regarding the level of utilization of manufacturing capacity, which fell from 81.4% in
November to 80.2% in December. Flávio de Castelo Branco, the CNI’s chief-economist,
emphasized that the set of data for the last quarter of 2008 (in comparison with the previous
year) is Brazilian industry's worst since 20031.
December of 2008 showed a retraction of 12.4% in industrial production in comparison with
November, and 14.5% in comparison with the same month in 2007. Isabella Nunes, indus-
trial coordination economist at the Brazilian Institute of Geography and Statistics (IBGE),
pointed out that the retraction was widespread, affecting 25 of the 27 sectors studied. For
example, the Electronic and Communications Materials sectors saw a -60.3% downturn in
December, in comparison with November; for Machinery and Equipment, -21.9%; Basic Met-
allurgy, -24.5%2. In the view of the IBGE, this poor performance is related to the lack of credit
and the lack of confidence on the part of business owners, and consumers as well, since
they have reduced purchases out of fear of possible unemployment. Brazilian industry also
suffered with the slowing of world commerce. Reductions in exports have for the most part
affected the extractive industry with an 11.8% downturn from November to December of
20083.
The strong downturn in industry has a direct impact on investment plans and consequentially
on the purchase of new equipment and machinery. The first projects to be hit were those
aimed towards increasing energy efficiency. These were either cancelled, or in best-case
scenarios, were postponed. Neumann (2009)4, has also pointed out that […]
[…] the dissemination of collective agreements reducing working hours and
salaries, and also the strong increase in lay-offs in practically all sectors is going to
1 See: GOY, L. “Para CNI, País pode ter recessão”. O Estado de S. Paulo. 4 de fevereiro de 2009. See too: GAVÃO, A. “Uso da
capacidade instalada cai para 80,2% em dezembro”. Valor Econômico. 4 de fevereiro de 2009.
2 FARID, J. “Indústria brasileira despenca 12,4% em dezembro, pior queda em 17 anos”. O Estado de S. Paulo. 4 de fevereiro
de 2009.
3 GRABOIS, A. P. “Demanda interna leva indústria a queda recorde e generalizada”. Valor Econômico. 4 de fevereiro de 2009.
4 NEUMANN, D. “Crise cortou ciclo de investimentos e efeitos irão além de 2009”. Valor Econômico. 4 de fevereiro de 2009.
Revista Labor & Engenho L & E
ISSN:2176-8846 v.6, n.3, 2012
CÁRCEL CARRASCO, J.; MARIOTONI, C. A.; NATURESA, J. S. Influences of economic development in the Brazilian energy
efficiency projects. Labor & Engenho, Campinas [Brasil] v.6, n.3, p.92-104, 2012. Disponível em: <www.conpadre.org> e
<www.labore.fec.unicamp.br>.
94
affect our internal situation even more and, consequentially, domestic demand
(NEUMANN, 2009).
Clearly, projects to reduce electricity use are not yet a priority for industry. In other words,
little progress was made during the first half of 2009 regarding energy efficiency.
In August of 2009, industry is beginning to show signs of recovery. In August and
September, 35,000 people accessed the Brazilian Association of the Machine and
Equipment Industry (Abimaq) website to obtain information about financing for purchasing
machinery. This number is the same as the one recorded for the entire year of 2008, with
37,000 accesses. Another interesting piece of data refers to the use of industry’s
manufacturing capacity. Research conducted by the Getúlio Vargas Foundation (FGV)
shows that it increased 1.5% between July and August. In August of 2009, the use of this
capacity reached 81.3%, achieving practically the same percentage as in November, 20085.
National Electricity Conservation Program
The objective of the National Electricity Conservation Program (PROCEL) is to encourage
rationalization of electricity production and consumption. PROCEL was created in December
of 1985 by the Ministries of Mines and Energy and Industry and Commerce, and was
administered by an Executive Secretary subordinate to ELETROBRÁS (Centrais Elétricas
Brasileiras). In 1991, PROCEL was transformed into a Government Program and its range
and responsibilities increased. Procel’s main results, from 1986 to 2009, are shown in Table
1 <www.eletrobras.gov.br/procel/site/home/>.
The Table 1 shows the results cumulated by Procel. The total investments made are bigger
than 1,12 billion of real, besides the saved energy is equivalent to a 9.105 MW power plant.
In November of 2006, Eletrobrás/PROCEL launched the PROCEL INFO portal
<www.procelinfo.com.br>, the Centro Brasileiro de Informação de Eficiência Energética
(Brazilian Energy Efficiency Information Center). The objective of PROCEL INFO is to bring
together and make available information of interest to professionals working in the field of
energy efficiency, facilitating their integration and in this way becoming a Brazilian point of
reference in the dissemination of quality information about the rational and efficient use of
energy.
During the one-year period November 2006-2007, an average of 306 users signed up every
month for an approximate total of 3,700. Out of these users, approximately 40% are from Rio
de Janeiro and São Paulo. The majority of users are from the states of Rio de Janeiro and
São Paulo, a consequence of the portal's strategy to target intermediary agents in the field of
energy efficiency (concentrated in the Brazilian Southeast)6.
Another important aspect related to energy efficiency refers to energy concession contracts.
Concession contracts signed between energy distribution companies and the Brazilian
Electricity Regulatory Agency (ANEEL) establish a series of obligations and charges. One of
these obligations “consists in applying the upstream of at least 0.5% of its net operating
revenue each year to energy efficiency projects”7. In order to comply with this obligation,
5 CHIARA, M. “Indústria se prepara para voltar a crescer”. O Estado de S. Paulo, 14 de setembro de 2009.
6 NATURESA, J. S.; MARIOTONI, C. A.; MENEZES, T. V.; PERRONE, F. P. D. e LEPETITGALAND, K. K. “Respostas para a
crise de energia elétrica: Eficiência Energética, Uso racional de energia e Fontes Renováveis”. AGRENER GD 2008 - 7º
Congresso Internacional sobre Geração Distribuída e Energia no Meio Rural. 2008a.
7 ANEEL – Agência Nacional de Energia Elétrica – <www.aneel.gov.br>.
Revista Labor & Engenho L & E
ISSN:2176-8846 v.6, n.3, 2012
CÁRCEL CARRASCO, J.; MARIOTONI, C. A.; NATURESA, J. S. Influences of economic development in the Brazilian energy
efficiency projects. Labor & Engenho, Campinas [Brasil] v.6, n.3, p.92-104, 2012. Disponível em: <www.conpadre.org> e
<www.labore.fec.unicamp.br>.
95
concessionaires must present a series of projects making up their Energy Efficiency Annual
Program, which should contain both physical and financial goals.
Table 1. Principal results of PROCEL (1986 to 2009).
PROCEL (1986-2009)
1986/2003
2004
2005
2006
2007
2008
2009
Investment Eletrobras / Procel
(R$ million)(a)
252,01
27,18
37,17
29,24
13,62
5,49
9,02
Investment RGR (R$ million)(b)
12,00
54,00
44,60
77,80
39,16
25,8
55.95
Investment on the Project of Energy
Efficiency for Brazil (R$ million)(c)
2,09
12,97
16,23
6,20
–
–
–
Total Investment Done (R$ million)
666,08
94,15
98,02
113,24
52,78
31,29
64,97
Energy Saved (billion of kWh/year)
17,22
2,373
2,158
2,845
3,930
4,374
5,473
Reduction of Demand at Pick (MW)
4.633
622
585
772
1.357
1.569
2.098
Power Plant Equivalent (MW)(d)
4.033
569
518
682
942
1.049
1.312
Investment Postponed (R$ billion)
10,65
2,50
1,77
2,23
2,8
2,9
3,9
Source: Results of Procel 2009 e <www.eletrobras.com/procel> (May-2010).
(a) Refer just to budget resources of Procel effectively done each year, not being considered the labor salaries of
Eletrobras/Procel.
(b) RGR (Global Reserve of Reversal) is the federal fund formed with electrical companies, proporcional to the investment of
each one.
(c) Refer to the investment of US$ 11,9 millions of the GEF (Global Environment Facility) and the counterpart of Eletrobras.
(d) Obtained from the energy saved, considering a typical médium factor of capacity of 56% for hydroelectric power plants
including 15% of medium losses in the T&D for the parcel of energy conservation.
Table 2 presents this project’s results, defining the number of participating companies,
investments realized, demand avoided and energy saved. It can be seen that during the
period from 1998 to 2006, R$ 1.919 billion was invested, resulting in energy savings of 5,559
GWh. Table 3 shows the types of projects carried out (period 2000/2001 to 2004/2005). Note
that the majority of these projects were aimed at low-income consumers through the
replacement of old refrigerators for new ones and incandescent bulbs for electronic ones
(NATURESA et al., 2008b)8.
Energy Efficiency Investment Programs
Although many programs to support and encourage increased energy efficiency exist, the
government has yet to implement an effective, wide-reaching policy to encourage factories to
invest in conservation and rational use of energy, which would necessarily involve the
replacement of obsolete and inefficient equipment for new, efficient equipment. According to
Naturesa et al. (2008b) it is the responsibility of […]
[…] industrial policies to speed up those processes of production transformation
that market forces can operate – albeit slowly – and trigger those processes which
the same forces are incapable of articulating (NATURESA et al., 2008b).
Industrial policy should include measures concerned with encouraging […]
8 NATURESA, J. S.; MENEZES, T. V.; MARIOTONI, C. A.; PERRONE, F. P. D.; LEPETITGALAND, K. K. e BASTOS, F. C.
“Levantamento dos Programas de Eficiência Energética para Sistemas Motrizes na Indústria e os Principais Resultados do
PROCEL INFO”. AGRENER GD 2008 - 7º Congresso Internacional sobre Geração Distribuída e Energia no Meio Rural. 2008b.
Revista Labor & Engenho L & E
ISSN:2176-8846 v.6, n.3, 2012
CÁRCEL CARRASCO, J.; MARIOTONI, C. A.; NATURESA, J. S. Influences of economic development in the Brazilian energy
efficiency projects. Labor & Engenho, Campinas [Brasil] v.6, n.3, p.92-104, 2012. Disponível em: <www.conpadre.org> e
<www.labore.fec.unicamp.br>.
96
[…] simultaneously, increases in international market insertion of industry's cutting
edge companies (through exports and substitution of imports) and modernization of
industry’s core companies, integrating already established sectors, with large
participation of small and medium sized businesses aimed at the domestic market
(idem, 2008b).
Modernization of industry's core companies will only be obtained with energy efficiency, since
this reduces these companies’ consumption of electricity, thereby leading to reduced
production costs. Also according to Naturesa et al. (2008b), industrial policy should be
organized into three components (i) modernization policies, (ii) restructuring policies and (iii)
competitive and regulatory policies. Energy efficiency projects should be included in the
modernization policies, since they work towards improving business production, managing
and commercial capacity.
Table 2. Distributor investment in research and energy efficiency.
Cycle
Number of
Companies
Investments (R$
millions)
Demand avoided
(MW)
Energy Saved
(GWh/year)
1998/1999
17
196
250
755
1999/2000
42
230
370
1020
2000/2001
64
152
251
894
2001/2002
64
142
85
348
2002/2003
64
154
54
222
2003/2004
64
313
110
489
2004/2005
64
175
275
925
2005/2006
64
296
141
538
2006/2007
60
261
138
368
Total
1919
1674
5559
Source: ANEEL – Agência Nacional de Energia Elétrica – <www.aneel.gov.br>.
Table 3. Types of projects carried out (period 2000/2001 to 2004/2005).
Type
Investments
(R$ millions)
Demand avoided
(MW)
Energy Saved
(GWh/year)
Public lighting
374.6
175
797
Residential
133.5
313
930
Industrial
96.0
59
376
Public Services
91.3
118
312
Education
80.9
25
90
Trade and Services
59.5
30
130
Government
34.8
14
57
Solar heating
19.4
n.d.
n.d.
Rural
14.6
9
83
Losses
12.4
17
79
City Energy Management
11.5
n.d.
n.d.
Load factor
11.2
6
0.6
Total
939
765
2853
Source: ANEEL – Agência Nacional de Energia Elétrica – <www.aneel.gov.br>.
At the beginning of May 2008 the government launched a new industrial policy called the
Production Development Policy (PDP). The objective of this policy is to stimulate exports,
investments and innovation. The measures add up to R$ 21.435 billion in disencumbrance
from now until 2011 and disbursements via the National Bank of Economic and Social
Revista Labor & Engenho L & E
ISSN:2176-8846 v.6, n.3, 2012
CÁRCEL CARRASCO, J.; MARIOTONI, C. A.; NATURESA, J. S. Influences of economic development in the Brazilian energy
efficiency projects. Labor & Engenho, Campinas [Brasil] v.6, n.3, p.92-104, 2012. Disponível em: <www.conpadre.org> e
<www.labore.fec.unicamp.br>.
97
Development (BNDES) of R$ 210.4 billion from now until 2010. Regarding innovation and
research and development (R&D), BNDES offers a Long Term Interest Rate (TJLP) of 6.5%
per year for R&D and 4.5% per year for innovation9. The program’s main objectives are to:
increase fixed investments; increase private sector innovation; stimulate industrial sector
innovation through private investments in research and development; expand exports;
increase Brazilian participation in world exports to 1.5% of world trade in 2010; elevate small
and medium sized business' exports; increase the number of Brazilian micro and small
exporting businesses by 10%.
The PDP is divided in three categories, as follows: programs to mobilize strategic areas (nu-
clear energy, nanotechnology and biotechnology); programs to strengthen competitiveness
(agroindustry, biodiesel, plastics, textiles and furniture); and programs to consolidate and ex-
pand leadership (petroleum, gas and petrochemical, mining, steelmaking, pulp and paper,
and meat).
The main measures used to achieve these objectives are10:
• Reducing BNDES financing costs and increasing subsidies to export sectors;
• Give federal, state and city government purchasing preference to national sectors
that invest in innovation, research and development;
• With PIS/Cofins (Social Integration Program/Contribution for the Financing of
Social Security) taxes, reduction of the time it takes for companies to be
reimbursed with credits of these taxes;
• With income tax, accelerated depreciation of machinery and equipment acquired to
increase production capacity.
The program’s general coordination will be the responsibility of the Ministry of Development
with the support of an executive-secretary made up of the Brazilian Industrial Development
Agency (ABDI), BNDES and the Ministry of Finance. The new industrial policy directly
benefits energy efficiency programs and the BNDES has become an important source of
financing of these programs.
In August’2009 the FIESP (Federation of the Industries of the State of São Paulo), Brazil,
has published a research about the impact of PDP in the industries of State of São Paulo,
developed in October of 2008, consulting 450 industries. One of the results of that research
shows “the high degree of lack of knowledge of the politics of productive development (PDP)
that affects about 45% of the total industries”. That emphasizes the greater part of the
businessmen (65%) considers positive the studies made, but presents a low expectation on
the viability (87%). The main reasons by this low expectation are the hard government taxes
and the difficulties to access the program.
The barriers which deserve to be observed about the increase on demand for instruments da
PDP are absence of both information and the regulation of the products suitable to the
necessities of the industries. Related to the impact of the PDP actions, 29% of the
businessmen believes thta would not be any impact and 46% believes that the positive
impact is to be low resulting in a high level of skepticism. That means the effects of PDP on
industries are much less expected than those expected on the economy (FIESP, 2009).
9 See: POLÍTICA DE DESENVOLVIMENTO PRODUTIVO. <http://www.desenvolvimento.gov.br/pdp/>. See too: D’AMORIM, S.,
LAGE, J. e MACHADO, R. “Desoneração da indústria atinge R$ 2 bi”. Folha de S. Paulo, 13 de maio de 2008.
10 See: POLÍTICA DE DESENVOLVIMENTO PRODUTIVO. <http://www.desenvolvimento.gov.br/pdp/>. See too: TEREZA, I.
“Bens de capital e inovação terão destaque”. O Estado de S. Paulo, 11 de maio de 2008.
Revista Labor & Engenho L & E
ISSN:2176-8846 v.6, n.3, 2012
CÁRCEL CARRASCO, J.; MARIOTONI, C. A.; NATURESA, J. S. Influences of economic development in the Brazilian energy
efficiency projects. Labor & Engenho, Campinas [Brasil] v.6, n.3, p.92-104, 2012. Disponível em: <www.conpadre.org> e
<www.labore.fec.unicamp.br>.
98
Innovation
The fastest growing countries around the world invest heavily in research and development
in order to obtain innovative products and processes. According to Arbix (2007)11, the
process of innovation results in interactions between individuals, businesses and other
knowledge producing institutions on the local, national and global level.
According to Industrial Research in Technological Innovation12, between 1998 and 2000, in
Brazil the recommendation to innovate only in terms of the process predominated, while for
the years 2001-2003, more companies adopted the strategy to innovate in both products and
processes, increasing from 11.3% in the first period to 14% in the second. Table 4 illustrates
the types of innovation in Brazil for the periods 1998-2000 and 2001-2003. Rosenberg
(2006)13 explains the concept of process innovation:
Process innovations typically involve new equipment or machinery, where the
innovations are incorporated; this machinery and equipment are also product
innovation, from the point of view of the company that produces it (ROSENBERG,
2006, p.19).
Regarding the innovation point of reference, new processes for industry in Brazil fell from
2.8% for the 1998-2000 period, to 1.2% for the 2001-2003 period. On the other hand, new
processes for companies rose from 23.3% to 26%, respectively. According to the study:
[…] the reduction in innovation on the domestic market took place in all sizes of
companies, which suggests the influence of the macroeconomic situation in
decisions on technological development made during the 2001-2003 period
(PINTEC, 2003).
Table 4. Percentage of companies implementing innovations. Brazil:
(1998-2000) and (2001-2003).
Type
1998-2000
2001-2003
Product and process.
11.3
14
Product only
6.3
6.4
Process only
13.9
12.9
That implemented innovations
31.5
33.3
Source: PINTEC – Pesquisa Industrial de Inovação Tecnológica.
2003. Disponível em <http://www.ibge.gov.br>.
The fundamental point of this research refers to the impact of innovation on the companies.
During both periods, the following effects of innovation were observed most: increased
production flexibility and capacity, expansion of the company's market participation,
maintenance of the company's market participation and product quality improvements.
It can clearly be seen that Brazilian industry has sought to establish alternatives to leverage
its growth on a national scale, although emphasis has not been placed on innovation, which
demands more daring and effective industrial policy on the part of the Brazilian government.
It is in this intricate context, in which industry does not receive incentives to invest in energy
efficiency programs, that the proposal to at the very least replace old equipment with new,
more energy efficient versions, comes to be looked at by the country as a technological
11 ARBIX, G. Inovar ou inovar – a indústria brasileira entre o passado e o futuro. Editora Papagaio. 2007.
12 PINTEC – Pesquisa Industrial de Inovação Tecnológica. 2003. Disponível em <http://www.ibge.gov.br>.
13 ROSENBERG, N. Por dentro da caixa-preta – Tecnologia e Economia. Editora da Unicamp. 2006.
Revista Labor & Engenho L & E
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CÁRCEL CARRASCO, J.; MARIOTONI, C. A.; NATURESA, J. S. Influences of economic development in the Brazilian energy
efficiency projects. Labor & Engenho, Campinas [Brasil] v.6, n.3, p.92-104, 2012. Disponível em: <www.conpadre.org> e
<www.labore.fec.unicamp.br>.
99
innovation strategy. At the end of the year 2010 it has been presented the PINTEC-2008 with
a new classification of the economic activities, making more difficult the comparison with
elder results. The Table 5 shows the innovation rates of both the extraction and the
transformation industries between the years 1998 and 2008. That comparison has been
made by CAVALCANTE & DE NEGRI (2010).
Table 5. Innovation rates of both the extraction and the transformation industries between the years (1998-2008) – (%).
Year
Innovation rate
Innovation rate
of new product
to industry
Innovation rate
of new product
to the market
Innovation rate
of new process
to empresa
Innovation rate
of new process
to national
market
1998-2000
31,52
14,38
4,13
23,27
2,78
2001-2003
33,27
18,08
2,73
26,04
1,21
2003-2005
33,36
16,67
3.25
25,48
1,66
2006-2008
38,11
19,93
4,10
30,83
2,32
Source: adapted from CAVALCANTE & DE NEGRI (2010).
Analyzing the Table 5 it is possible to see that there was a increasing in the innovation rate
between the years 1998 and 2008, increasing from 31,52% to 38,52%. On the other hands,
the innovation rate of new product for the Market and the new process for the market have
decreased from 4,13% to 4,10% and from 2,78 to 2,32%, respectively.
The rate of innovation for both products and process, for the market, have been
greater just for the first edition of PINTEC (1998 to 2000), probably due to the
newness of concepts and the inherent difficulties to respond the questions
(CAVALCANTI & DE NEGRI, 2010).
The second “Congresso Brasileiro de Inovação na Indústria” (Brazilian Industrial Innovation
Conference) was held in April of 2007. The main conclusions reached by the event were:
Brazil needs to double its investments in R&D in the coming years; Brazilian industry has
expanded its efforts in research and development, although the rhythm of investment
increases was insufficient to insert companies in foreign markets; the Brazilian Innovation
System is in need of improvement; innovation policy institutions and instruments should be
the subject of constant evaluations. One point that deserves attention refers to the great lack
of knowledge on the part of small and medium sized businesses about instruments that are
available to stimulate technological innovation14.
In May-2009 it has been organized the 3th Brazilian Congress on Industry Innovation. In that
Congress it has been presented the “Letter for Industry Innovation”, with the aim of doubling
the number of Innovating Companies in 4 years (Innovation: The Construction of the Future,
2009). This Congress was smaller than the before ones, perhaps due to the slow country
industrial increasing ratio at this period. It must be emphasized the webpage of this event
that shows many innovation success cases, an excellent page for studies and discussion
<http://www.inovacaocni.com.br/home.aspx>.
In terms of financing for innovation, the PITCE (Industrial, Technological and Foreign Trade
Policy) has expanded its mechanisms for financing companies’ research and development.
According to the National Confederation of Industries (CNI) several public financing
14 See: MARIOTONI, C. A. & NATURESA, J. S. “Inovação Tecnológica, Eficiência Energética e os Investimentos na Indústria
Brasileira”. Congresso Brasileiro de Eficiência Energética. 2007. See too: CNI – Confederação Nacional da Indústria. Inovar
para Crescer: propostas para acelerar o desenvolvimento tecnológico da Indústria Brasileira. Segundo Congresso Brasileiro de
Inovação na Indústria. 2007. <http://www.cni.org.br/inovação>.
Revista Labor & Engenho L & E
ISSN:2176-8846 v.6, n.3, 2012
CÁRCEL CARRASCO, J.; MARIOTONI, C. A.; NATURESA, J. S. Influences of economic development in the Brazilian energy
efficiency projects. Labor & Engenho, Campinas [Brasil] v.6, n.3, p.92-104, 2012. Disponível em: <www.conpadre.org> e
<www.labore.fec.unicamp.br>.
100
programs and instruments have been created and improved for the area of innovation,
including: non-reimbursable resources, such as subsidies; reimbursable credit; and venture
(or entrepreneurial) capital. Once again, FINEP and the BNDES appear as the main
financing institutions.
Regarding FINEP, its programs that deserve the most attention are: “Pró-inovação” Pro-
innovation; PAPPE (Support Program for Research in Small Companies) and the “Juro Zero”
(Zero Interest) program. CNI (2007)15 highlights the following proposals: increase access to
existing lines of financing; define an appropriate volume of resources for equalizing financing;
stimulate participation of other public financing institutions, especially Banco do Brasil (Bank
of Brazil), CAIXA (Brazilian Federal Savings Bank) and development banks; reduce
bureaucracy and facilitate credit access for businesses; train BNDES and FINEP technicians
towards greater understanding of business expenses in technological development and
innovation; and coordinate work by financing agencies like the BNDES and FINEP in such a
way as to optimize the use of available resources.
Micro, Small and Medium Sized Businesses
According to Law no. 11,196/2005, article 17:
Technological innovation is defined as the conception of a new product or
manufacturing process, as well as the addition of new functions or characteristics
to products or processes, resulting in incremental improvements and effective
gains in quality or productivity, leading to greater market competitiveness
(authors’ italics).
Mariotoni & Naturesa (2007)16 have demonstrated the main strategies towards the creation of
industrial policy aiming towards the technological innovation focused on energy efficiency of
Micro, Small and Medium Sized Businesses (MSMBs). That is, the replacement of old
equipment with new, more energy efficient versions should be seen by the country as a
strategy for technological innovation.
In order to prove how important MSMB investments in energy efficiency are, Table 6 shows
the percentage of net income spent on electricity by different establishments. For more than
10% of micro and small businesses energy costs consumed 5-7.5% of the net revenue. In
northern Brazil, 14.3% of the establishments spent more than 10% of their net revenue on
electricity.
According to the CNI (2005)17, little articulation exists between development agencies,
research institutes and public organizations from the science, technology and innovation
system. Additionally, access to credit on the part of MSMBs is made difficult by the countless
demands made by financial institutions for collateral.
According to CNI (2006)18, the percentage of Micro and Small Businesses (MSBs) that
invested in acquiring Brazilian made machinery and equipment in 2003 was 78%, greater
than the 52% recorded in 1999. Regarding Research and Development (R&D), investments
were low for the MSBs. For micro-businesses, 47% did not invest in R&D, while for small
businesses this percentage is lower, at 23.7%, a figure closer to that of medium sized
15 CNI (2007). Inovar para crescer: propostas para acelerar o desenvolvimento tecnológico da Indústria Brasileira.
16 MARIOTONI, C. A. & NATURESA, J. S. “Inovação tecnológica, eficiência energética e os investimentos na Indústria
Brasileira”. Congresso Brasileiro de Eficiência Energética. 2007.
17 CNI. Políticas Públicas de Inovação no Brasil: A Agenda da Indústria. Brasília, novembro de 2005.
<http://www.cni.org.br/inovacao/>.
18 CNI. Crescimento. A visão da indústria. 2006. <http://www.cni.org.br>.
Revista Labor & Engenho L & E
ISSN:2176-8846 v.6, n.3, 2012
CÁRCEL CARRASCO, J.; MARIOTONI, C. A.; NATURESA, J. S. Influences of economic development in the Brazilian energy
efficiency projects. Labor & Engenho, Campinas [Brasil] v.6, n.3, p.92-104, 2012. Disponível em: <www.conpadre.org> e
<www.labore.fec.unicamp.br>.
101
companies. Investments carried out in 2003 were concentrated on the acquisition of
machinery and equipment, human resources training, product and process development and
on placing innovative products on the market. The Brazilian northeast deserves special
attention, as nearly all companies (approximately 70%) invested in R&D.
Investment carried out in 2003 were concentrated on the acquisition of machinery and
equipment (63%), human resources training (46%), product and process development (44%)
and on placing innovative products on the market (35%) (CNI, 2006).
Tidd; Bessant & Pavitt (2008)19 confirms that the frequency of innovation for companies with
less than 100 employees is much lower than in large companies. Table 7 shows the
frequency and sources of innovation by business size in France (1993-1994). Reading the
table, it can be seen that only 55% of companies with less than 50 employees are innovative.
For companies with more than 100 employees, the percentage rises to 70%. This proves that
small companies, be they in Brazil or France, are the ones most in need government support
to encourage any kind of process towards innovation.
Table 6. Percentage of net revenue spent by establishments on electricity.
Up to 2.5%
2.5 – 5%
5 – 7.5%
7.5 – 10%
Greater than 10%
Size
Micro and small
54%
22.7%
10.8%
6.3%
6.3%
Micro
53.9%
24.2%
10.2%
5.5%
6.3%
Small
54%
21.0%
11.6%
7.1%
6.3%
Geographic Region
North
33.3%
28.6%
14.3%
9.5%
14.3%
Northeast
60.5%
20.9%
4.7%
9.3%
4.7%
Central-West
52.5%
18.6%
16.9%
3.4%
8.5%
Southeast
50.7%
25.6%
9.7%
6.6%
7.5%
South
61.5%
19.2%
11.5%
5.4%
2.3%
Source: CNI. Crescimento. A visão da indústria. 2006. <http://www.cni.org.br>.
As it has already been stated, only the Financing Agency for Studies and Projects (FINEP)
and the National Bank of Economic and Social Development (BNDES) have credit lines
specifically aimed at innovation (CNI, 2007).
FINEP’s “Juro Zero” (Zero Interest) program seem to be the most appropriate for financing
energetic innovation in small and medium sized businesses. The program was created with
the objective to facilitate concession of financing towards innovation in small businesses,
through special conditions for access, such as the creation of a credit guarantee fund, zero
interest, and the adoption of simplified procedures for analyzing and approving projects
(MORAIS, 2008)20 .
The program was launched in 2004, but began operating in 2006. First, the states of
Pernambuco, Paraná, Bahia, Minas Gerais and the Florianópolis Metropolitan Area received
R$ 20 million for the concession of loans to small businesses. The loans varied from R$
100,000-900,000 and were subject to a limit of 30% of the company’s revenue, requiring a
minimum annual revenue of R$ 333,300 and a maximum of R$ 10.5 million. By December of
2007 the Zero Interest Program accepted 46 innovation projects for a total of R$ 26.1 million.
The majority of projects belong to the software segment (9 projects) followed by
19 TIDD, J.; BESSANT, J. & PAVITT, K. Gestão da Inovação. Editora Bookman. 2008.
20 MORAIS, J. M. “Uma avaliação de programas de apoio financeiro à inovação tecnológica com base nos Fundos Setoriais e
na Lei de Inovação” in João Alberto de Negri & Luis Cláudio Kubota (Organizadores), Políticas de Incentivo à Inovação
Tecnológica. IPEA – Instituto de Pesquisa Econômica Aplicada. 2008.
Revista Labor & Engenho L & E
ISSN:2176-8846 v.6, n.3, 2012
CÁRCEL CARRASCO, J.; MARIOTONI, C. A.; NATURESA, J. S. Influences of economic development in the Brazilian energy
efficiency projects. Labor & Engenho, Campinas [Brasil] v.6, n.3, p.92-104, 2012. Disponível em: <www.conpadre.org> e
<www.labore.fec.unicamp.br>.
102
biotechnology (4 projects). On average, the companies employ 25 people and have an
average annual revenue of R$ 3,472,000 (MORAIS, 2008).
Table 7. Frequency and source of innovation by business size in France (1993-1994).
Sources of Innovation (%)
Size of
Company
Innovative
Businesses
Own
R&D
Partial
R&D
External
R&D
Licenses
Machinery
Supplier
Material
Supplier
20-49
55
16
25
10
5
26
18
50-99
66
19
25
10
5
23
16
100-199
70
21
25
11
5
22
16
200- 499
80
24
24
12
6
20
15
500-1999
86
26
23
13
6
19
14
2000+
96
25
21
14
6
18
14
Source: TIDD, J.; BESSANT, J. & PAVITT, K. Gestão da Inovação. Editora Bookman. 2008.
YOSHINO (2003) has done some studies about the main barriers related to the energy
efficiency in micro, small and medium industries in the State of São Paulo, Brazil. He has
visited many industries in the interior of the State, mainly the cities of Americana and Franca.
Yoshino has seen on these two city areas, that some medium industries have engineers of
good profissional level, which already have done studies of energy conservation, but the
measurements did not become reality. That have been explained by the researcher that
businessmen have a short term vision and do not worry about the strategy of rational use of
energy.
Conclusions
The politics of productive development (PDP) is supported by four pillars: increased fixed
investments; increased private sector innovation; expansion of exports and stimulating
exports for small and medium sized companies. In our understanding, these objectives
should necessarily undergo a reformulation of Brazilian industry through the replacement of
obsolete and inefficient equipment. We believe that energy efficiency projects can be looked
at as important R&D&I projects, since they bring new products with them and new knowledge
for business owners and company technicians.
The largest financers of said changes continue to be the BNDES and FINEP. The greatest
cause for concern is related to the coordination and evaluation of new projects. The
University-Industry interface continues to be a great impediment to collaborative projects. In
any case, the new industrial policy constitutes an important step forward for energy efficiency
projects, as it is for industrial development (especially of micro, small and medium sized
businesses) and the development of the country as a whole.
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CÁRCEL CARRASCO, J.; MARIOTONI, C. A.; NATURESA, J. S. Influences of economic development in the Brazilian energy
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