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Good practice Imported

EMBRAPII — Brazil's Shared-Risk Industry–Research Innovation Financing Model

Brazil · Brasília · See the Brazil profile · See the Brasília profile

Evidence: Descriptive / self-reported Top 27% 76/100 · Ask Evidence Copilot about this practice

Brazil's federal EMBRAPII co-funds R&D between research institutes and firms, splitting risk three ways. A first evaluation of 179 funded firms found 68% led to innovations, 91% reported positive impact; by 2023 it backed 2,355 projects worth R$3.46bn across 1,610 firms.

68.2 %
Projects leading to innovations (first evaluation)
91 %
Firms reporting positive impact (first evaluation)
2,355 projects
Projects financed cumulatively (2013–2023)
1,610 companies
Client companies financed cumulatively (2013–2023)
R$3.46 billion BRL
Cumulative investment (2013–2023)
R$677 million BRL
Contracted value in 2023 (2023)
431 companies
Companies funded in 2023 (2023)
17.6 %
Growth in contracted value, 2023 vs 2022 (2023 vs 2022)
EMBRAPII — Brazil's Shared-Risk Industry–Research Innovation Financing Model

Details

Maturity
Established
Promoter
EMBRAPII – Empresa Brasileira de Pesquisa e Inovação Industrial
Period
2013–2023
Keywords
industrial R&D, innovation policy, university-industry collaboration, manufacturing, agribusiness, biotechnology

Context

EMBRAPII, a federal social organisation founded in December 2013 and headquartered in Brasília, funds collaborative research projects between accredited technological-research institutes and industrial companies, targeting pre-competitive, close-to-market innovation.

Objectives

Share R&D risk roughly three ways between EMBRAPII, the company and the research unit to advance pre-competitive, close-to-market innovation across sectors including manufacturing, agribusiness and biotechnology.

Activities

EMBRAPII co-funds collaborative research projects between accredited technological-research institutes and industrial companies, splitting costs roughly three ways between EMBRAPII, the company, and the research unit.

Results

A first comprehensive independent evaluation surveying 179 EMBRAPII-funded companies found that 68.2% of projects led to innovations and 91% of firms reported positive impacts on product value, market access or internal capabilities — outperforming Brazil's national innovation survey baseline. By 2023, the model had cumulatively financed 2,355 projects with 1,610 client companies for R$3.46 billion invested since 2013, with a record R$677 million contracted across 431 companies in 2023 alone (17.6% growth over 2022).

Conclusions

The evidence so far is a self-reported outcomes survey plus programme administrative data rather than a counterfactual impact evaluation, so causal attribution to EMBRAPII funding versus other firm-level factors is not established.

Implementation
Indicative cost
High (€500k–€5M) — Costs are split roughly three ways between EMBRAPII, the company and the research unit; cumulative investment reached R$3.46 billion (2013–2023), with R$677 million contracted in 2023 alone.
Time to results
Long (> 3 years) — Founded December 2013; operated continuously through 2023 (10 years), with contracted value growing 17.6% from 2022 to 2023.
Staffing & skills
Projects run jointly by accredited technological-research institutes and industrial companies, with EMBRAPII co-financing

Conditions for success

  • accredited research institutes with sufficient technical capacity
  • three-way cost-sharing discipline between EMBRAPII, the company and the research unit

Common failure modes

  • causal attribution to EMBRAPII funding versus other firm-level factors is not established, as no counterfactual evaluation has been conducted
  • sources describe no targeting of underrepresented entrepreneurs or regions

Commonly funded by

National / regional programmes

Indicative funding routes for practices of this type — always check each programme's current calls and eligibility rules.

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Data sources

Where this practice's information was retrieved from, and when.

Attachments

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