Innovation management in the Brazilian electricity sector: the case of Eletrobras

companies

Type: a. pesquisa original - empírica,

Track: Innovation in transnational contexts
Purpose: This paper studies the Research, Development, and Innovation Policy of
Eletrobras, and how the firm is being prepared to foster, guide and prioritize R&D+I in
the controlled companies, part of the Eletrobras group. Eletrobras is a Brazilian public
holding company responsible for power generation in the country, controlling several
other hydroelectric, thermal, and nuclear generation companies. It is also the objective of
this research to describe the current innovation policy and the innovation management
techniques used, considering characteristics, ideas, guidelines for the holding company
and for the other companies from Eletrobras. This study also discusses how Eletrobras
ensures the synergy of innovation actions with their alignment with strategic planning.
Design/Methodology/Approach: This is descriptive applied research with a
predominantly qualitative approach. Several research techniques are used, such as a
literature review, documentary research, and a case study, with interviews and participant
observation. The procedures for data collection were: Document Collection, Semi-
structured Interviews, and Observation. Regarding the Document Collection, were
consulted websites, technical reports, minutes, and internal documents of Eletrobras
companies, with data and information about the electric sector, that also contributed to
the literature review of this work. About the interviews, these were conducted throughout
2019. The analysis of the information collected was made using content analysis
techniques and subsequent theory-case-theory triangulation. To analyze how companies
are structuring their R&D+I areas, the five measures applied by the Galbraith Star Model
were used: strategy, structure, processes, people, and reward systems.
Findings or expected outcomes: An overview of the R&D+I process at Eletrobras is
developed. From this result, it is possible to propose strategies, specific practices, and
guidelines about innovation policies. As a consequence, the idea is also promoted that
although the National Electric Energy Agency (ANEEL) boosts R&D projects, the
innovation should be a priority at Eletrobras and at its companies, increasing the
investments in R&D+I, even if there is not a legal obligation.
Limitations/implications: It is essential to highlight the work does not intend to propose
a specific innovation policy for Eletrobras or any its group company. Nor is it previewed
to document the practice of innovation management in the sector.
Practical and/or Social Implications: With this work, it is expected to obtain more
active participation of the companies of the Eletrobras group in the scope of the
Technological Policy Commission (CPT) and to increase the number of R& D+I projects
executed by the companies. Mainly with the best structuring of innovation management
across the Eletrobras group, and with the benchmarking and exchanging information
R&D+I, this all practiced in CPT.
Originality/Value: Since the late 1990s, Brazil seems to be aware of the S&T&I policy´s
need, that is explicitly articulated with the Brazilian development process. In 1999, the
Sectoral Funds for Science and Technology were created and, in the mid-2000s, the
Innovation Law (Law Nº 10,973/ 2004) was promulgated. The legislation on tax
incentives for innovation was improved, which composed the third chapter of the Law of
Good (Law Nº 11.196/2005). In this context of the new millennium in the public sector,
the Law Nº 9,991/2000 is highlighted as the milestone of the beginning of the
Technological R&D movement of the Electric Power Sector in Brazil. Companies
operating in the electric sector (generation, transmission, and distribution) are required to
have minimum investments in research and development (R&D) and energy efficiency,
according to regulations established by the National Electric Energy Agency (ANEEL).
The update of the Innovation Law, with the advent of Law Nº 13.243/2016, was
considered the new legal framework for S&T&I in Brazil. The law has led to important
reflections on the need to eventually propose regulations that protect individual and
collective rights and guarantees, without at the same time, it to be a barrier to
technological development. The area of S&T&I in Brazil has not been achieving the
necessary results to fulfill its relevant role in the economic and social development of the
country. Brazil participates in the technological race on different fronts and forms of
action focused on R&D+I. It is important to consider that the development of a country
requires the participation of the state, through public companies, and the expansion of
interfaces with the private sector and the university, featuring the Triple Helix linkages.
It can be stated that the main company in the sector is Eletrobras, which under the
Brazilian federal government's control. It acts as a holding company, divided into
generation, transmission, and distribution and coordinates several companies in the
electricity sector. It is in this context that studying, in a broad and detailed way how is
being established the Eletrobras R&D+I Policy and how this company has been managing
its innovation, becomes valuable and important to contribute to the technological
development of Brazil. There is a shortage of empirical work on innovation management
in the Brazilian electricity sector, which makes this study have originality in its essence,
taking as reference a real case. Eletrobras' innovation policy was promulgated in 2018
and the company is working to implement a culture of innovation, considering the various
maturity levels of the controlled companies. This work is presented as a way to boost this
process.
Keywords: P&D; Innovation; Eletrobras; electric sector; Brazil.