Global Innovation Hotspots: A case study of São Paulo's innovation ecosystem local capabilities and global networks

WIPODevelopmentStudies GlobalInnovationHotspots AcasestudyofSãoPaulo’sinnovationecosystemlocalcapabilitiesandglobalnetworks GlobalInnovationHotspots AcasestudyofSãoPaulo’sinnovationecosystemlocalcapabilitiesandglobalnetworks PreparedbyVenezianoAraujo(UNICAMP),MassimilianoCoda-Zabetta(UniversityCollegeDublin&UniversityofBordeauxCNRS-BSE)*,RenatoGarcía(UNICAMP),ErnestMiguelez(UniversityofBordeauxCNRS-BSE)*,andJulioRaffo(WIPO-DEDA) Acknowledgements:Thereportbenefitedfromvaluablecomments,suggestionsandreviewkindlyofferedbySarahCristinaRibeiro(UNICAMP),PhilippGROSSKURTH(WEF),IntanHAMDAN-LIVRAMENTO(WIPO),EduardoHernandezRodriguez(UtrechtUniversity),FedericoMOSCATELLI(WIPO),DeyunYin(HITSZ)andMaryamZEHTABCHI(WIPO). (*)TheresearchwasalsopartiallyrelatedwiththeTKCprojectfromtheFrenchNationalResearchAgency(ANR-17-CE26-0016). ©WIPO,2022 WorldIntellectualPropertyOrganization34,chemindesColombettes,P.O.Box18CH-1211Geneva20,Switzerland Attribution4.0IGO(CCBY4.0) ThisworkislicensedundertheCreativeCommonsAttribution4.0InternationalLicense. Theuserisallowedtoreproduce,distribute,adapt,translateandpubliclyperformthispublication,includingforcommercialpurposes,withoutexplicitpermission,providedthatthecontentisaccompaniedbyanacknowledgementthatWIPOisthesourceandthatitisclearlyindicatedifchangesweremadetotheoriginalcontent. Suggestedcitation:WIPO(2022).AcasestudyofSãoPaulo’sinnovationecosystemlocalcapabilitiesandglobalnetworks.Geneva:WorldIntellectualPropertyOrganization. Adaptation/translation/derivativesshouldnotcarryanyofficialemblemorlogo,unlesstheyhavebeenapprovedandvalidatedbyWIPO.PleasecontactusviatheWIPOwebsitetoobtainpermission. Foranyderivativework,pleaseincludethefollowingdisclaimer:“TheSecretariatofWIPOassumesnoliabilityorresponsibilitywithregardtothetransformationortranslationoftheoriginalcontent.” WhencontentpublishedbyWIPO,suchasimages,graphics,trademarksorlogos,isattributedtoathird-party,theuserofsuchcontentissolelyresponsibleforclearingtherightswiththerightholder(s). Toviewacopyofthislicense,pleasevisithttps://creativecommons.org/licenses/by/4.0 AnydisputearisingunderthislicensethatcannotbesettledamicablyshallbereferredtoarbitrationinaccordancewithArbitrationRulesoftheUnitedNationsCommissiononInternationalTradeLaw(UNCITRAL)theninforce.Thepartiesshallbeboundbyanyarbitrationawardrenderedasaresultofsucharbitrationasthefinaladjudicationofsuchadispute. ThedesignationsemployedandthepresentationofmaterialthroughoutthispublicationdonotimplytheexpressionofanyopinionwhatsoeveronthepartofWIPOconcerningthelegalstatusofanycountry,territoryorareaorofitsauthorities,orconcerningthedelimitationofitsfrontiersorboundaries.ThispublicationisnotintendedtoreflecttheviewsoftheMemberStatesortheWIPOSecretariat. ThementionofspecificcompaniesorproductsofmanufacturersdoesnotimplythattheyareendorsedorrecommendedbyWIPOinpreferencetoothersofasimilarnaturethatarenotmentioned. Photocredit:GettyImages/wigglestick–MicrovOne PrintedinSwitzerland Summary Thisreportpresentsanin-depthstudyoftheinnovationecosystemofSãoPaulo(Brazil).Weusegeoreferencedpatent,scientificpublication,andeconomicdatatocharacterizeoneofthefewglobalinnovationhotspotsinLatinAmericaandthesouthernhemisphere.ItattemptstounderstandwhatmakesSãoPaulodifferentfromtherestofBrazilandtheLatinAmericanregionbymappingwhatitsmainpotentialitiesanddrawbacksare.ThereportfindsthatSãoPauloisrichinscientificactivity,butlagsbehindwithrespecttopatentproduction.Atthesametime,itisapatentleaderinBrazilandtheregionwithcharacteristicsresemblingthelargeinnovationhotspotsoftheworld.ThereportalsoshowswhereSãoPauloisintheglobalknowledgespace,andhowitcanleveragescientificproductionandglobalnetworkstoupgradeintomorecomplextechnologicalactivities.Thereportalsoreviewsthemaininnovationpoliciesatnationalandsubnationallevel,whichmaypartiallyexplaintheSãoPaulo’ssuccessstory. Keywords:SãoPaulo,innovationecosystem,patents,scientificpublications,clusters,geographyofinnovation,complexity,relatedness,GlobalInnovationNetworks JEL:O30,F20,F60 "WhenyouthinkabouttappingintotheLatinAmericaninnovationecosystem,SãoPaulocomesfirstonthelist”MichelPorcino,ManageratSPNegócios1 TheabovestatementispossiblyanaccuratereflectionofhowSãoPauloisperceivedinbusinessandinnovationcirclesworldwide.ThecityisconsideredaninnovationpowerhouseinBrazil,andbyextensioninallofLatinAmerica.Accordingtorecentreports,itishighlypositionedinworldwidestart-uprankings.Itholdsthe20thpositionaccordingtoGlobalStartupEcosystemIndex2021(StartupBlink,2021),notfarfromWashington,DCorChicago,andaheadofanyotherLatinAmericancity.Itranks35thaccordingtotheGlobalStartupEcosystemReport2021(StartupGenome,2021),closetocitieslikeMunich,GenevaandDelhi.Thecityishometomorethan50percentofstart-upinvestmentsinBraziland12outof20Brazilianunicorns,2andconcentratesthevastmajorityofventurecapital(VC)firmsandlargecorporationsinthecountry,includingtheLatinAmericanheadquarters(HQ)ofcompaniessuchasGoogle,Uber,Airbnb,Spotify,Netflix,AmazonandIBM,aswellaslargeacceleratorsandincubators(StartupGe