Cleantech development in emerging markets is inhibited by disorganized local infrastructure and lack of access to technological, financial, physical, and informational resources. Brazil’s approach of fortifying an expansive network of over 80 policy-backed technology parks presents a multi-faceted solution that fills resource gaps for local ecosystem players.
Brazil has raised $2.9B in cleantech venture funding in the last five years, driven by activity in agritech and micromobility. As climate strategies shift towards decarbonizing heavy industry and green hydrogen integration, these parks will become integral in developing the technology needed to implement them. Ultimately, technology parks can provide innovators, corporates, and the public sector a physical nexus point to access necessary resources to accelerate innovation.
Brazil Cleantech Venture Investment 2019-2024: Top 10 Sectors
For innovators, parks provide resources including equipment, lab space, network access, and commercialization support to address global innovation challenges:
- Lack of available talent: Strong ties with surrounding research universities create an easily accessible pool of skilled industry-relevant talent.
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- Limited access to materials and resources: Equipped with dedicated lab space and specialized equipment for testing and prototyping technology (especially hard technology), parks also leverage strong relationships with local academia to fill resource gaps.
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- Inadequate support at commercialization stage: Strong efforts towards technology transfer, early-stage networking, and mentorship ensure innovators looking to commercialize develop their product to market standard. Its prominent position within its wider local networks also provides innovators with opportunities to capitalize on available industry expertise.
Technology parks organize public sector approaches to tackling national climate strategies.
Evidently, size does matter: Brazil’s vast and geographically diverse territory creates varying experiences of climate change across different regions. Differences between regional ecosystem focuses are defined by local conditions and driving industries. Innovator success depends on how well technology responds to local climate issues and market demand through influencing local policy and engaging an already robust network of tech-focused research institutions.
- Activity is primarily concentrated around southeast Brazil: 38% of start-ups that received equity funding were located around Sao Paulo, as eastern parks are largely tied to public research universities.
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- Northern/Northeast Brazilian start-up hubs have historically demonstrated lower levels of investment in research and innovation generally due to underdeveloped infrastructure and physical distance from Southern tech hubs. Consistent northern climate patterns make these hubs ideal locations for developing/testing resource-intensive renewable technologies (e.g., offshore wind, solar, and hydro).
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- Parque de Ciência e Tecnologia Guamá is the first technology park to operate out of the Amazonas region, with focuses relating to forestry and resource conservation.
Selection of Brazilian Technology Parks with Climate-Tech Focuses
Corporates should capitalize on the policy-backed infrastructure that technology parks provide to mobilize catalytic funding.
Brazil’s network of technology parks remains successful as they are consistently supported by the public sector through frequent regime changes. State initiatives have encouraged the establishment of technology parks since 2011, running around 25%. These efforts are supported by policy instruments deployed by the government prioritizing sectors like agriculture, renewable energy generation (green hydrogen, wind, and solar), heavy industry (green steel production) and nature-based solutions (reforestation).
- ANPROTEC or the Associação Nacional de Entidades Promotoras de Empreendimentos Inovadores is the national association of innovative entities dedicated to establishing technology parks, incubators, and innovation ecosystems across Brazil.
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- New Industry Brazil / Nova Indústria Brasil (NIB) launched by the National Council for Industrial Development /Conselho Nacional de Desenvolvimento Industrial (CNDI) in 2023 to boost sustainability and innovation. The program had BRL $300M available in financing until 2026. While not strictly cleantech focused, Goal 5 of NIB’s action plan focuses on bioeconomy and decarbonization, aiming to increase share of biofuels in the energy matrix by 50% and a decrease of industry emissions by 30%.
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- Startup OutReach Brazil is a government outreach program connecting local start-ups to global innovation ecosystems. The program was helmed by Brazilian Export and Investment Promotion Agency (Apex-Brasil), the Ministry of Foreign Affairs (MRE), the Ministry of Industry, Foreign Trade and Services (MDIC), Sebrae and ANPROTEC.
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- Programme of Incentives for Alternative Electricity Sources/Programa de Incentivo a Fontes Alternativas de Energia Elétrica (PROINFA) was launched in 2001 as an incentive scheme aimed at achieving a 10% renewables share in Brazil’s energy matrix.
PROINFA was eventually phased out in favor of solar and wind auctions with the succeeding changes in government administrations, highlighting that local innovators cannot rely on consistent policy support. Thus, mobilizing local private sector actors like corporates and industry incumbents is imperative to sustain cleantech development.
Increasing efforts at the state level to facilitate international partnerships through technology parks can bridge the late-stage funding challenges faced by local cleantech start-ups.
Brazil’s prominent involvement in multi-national initiatives like the Green Hydrogen Organization and UNFCC, as the elected host of COP30, boosts the attractiveness of its local ecosystem with international investors. Technology parks should leverage this positioning to secure key partnerships with international corporates and investors. Parks’ prominent local positioning can provide innovators with much needed visibility to scale through international partnerships and penetrate markets outside of their locale.
- TecnoPARQ’s Cross Acceleration program aims at securing international partnerships for local start-ups.
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- Brazil-UK PACT (2024) supports projects decarbonizing steel, cement, and green hydrogen production through providing funding, technical support, and capacity building.
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- Brazil has secured valuable European corporates as implementation partners for cleantech initiatives including German corporate GIZ and Swissnex. Swissnex’ Swiss Business Hub in Brazil with federal support introduced Swiss start-ups like Daphne Technology and SoHHytec to the Brazilian energy market to facilitate local cleantech project development (renewables/green hydrogen generation, carbon capture technology).
Moving forward, technology parks should be leveraged to facilitate longer-term financial support for continued local cleantech development from the private sector to combat future policy changes.
Brazil’s strategy is a useful model for cleantech ecosystems in countries with diverse geographic and socioeconomic dynamics in emerging markets. Corporates should capitalize on the convenience these technology parks bring to convening industry expertise, innovative technology, skilled talent and public-sector support when engaging with the cleantech space. International firms interested in Brazilian innovation can leverage the technology park network to forge meaningful relationships with the local cleantech ecosystem.
