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
Af i or
S th Africa
South
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 i nott flat.
ld is 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 Countries with population
> 5 million km2 > 150 million

Bangladesh

Rússia Nigéria

EUA Paquistão

Brasil Indonésia
Austrália China Índia

J ã
Japão
Canadá

México
Espanha
França
ç
Países baixos
bai os
Itália
Alemanha
Brazil is a BIG Reino Unido Countries with GDP
country Coréia do Sul > 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

20 AGRIBUSINESS

10
b i llio n

4 ,7
TOTAL
0
U S $

-1 0

-2 0 OTHERS

-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%
180 125 million
tons
170 Area:
160 T t l growth:
Total th 28,5%
28 5%
ÍN D IC E

150
Annual average: 1,8% 49 million
140 has
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 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 *

CROPS: cotton, corn, rice, soybean, among others 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?

ƒ 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)

ƒ 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?

ƒ 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 1.5 million
POPULATION 51.6 million
GDP* US$ 124 billion

Pernambuco
AREA – km
km² 100.000
POPULATION 8 million
GDP* 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
ƒ Pernambuco IT C GDP in 2007 (estimate): U$ 1,2 bi
(3,6% of Pernambuco’s GDP)
ƒ U$ 400 million in software
ƒ U$ 225 million in Porto Digital
ƒ 120 companies
ƒ 4.000 IT employees (70% with higher
education
d ti andd 46% with ith up tto 25 years))
ƒ Salary average – U$ 1,4 mil (3x Recife’s salary
average)
ƒ an innovative cluster governance
Porto Digital
A short portfolio of services
ƒ Software Development
p ((solutions & pproducts))
ƒ Management
ƒ Finances
ƒ Health
ƒ Security
S it
ƒ Transportation & Traffic Management
ƒ Games
ƒ N
Neural l Networks
N t k / AI
ƒ E-business
ƒ Mobility and Wi-Fi
ƒ Information Security
ƒ Infrastructure and Connectivityy
ƒ Outsourcing
ƒ Education & Research
 ITBC2
CESAR
NGPD
CEE

ITBC1 SECTMA
SDEC

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 tot
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
cmarinho@gmail.com