THINKING ABOUT STARTUPS IN BRAZIL? MEET THE BRAZILIAN ‘SILICON VALLEY’

INTRODUCTION

Technology and information are the oil and gas of the 21^st century. The most valuable companies in the world are high-tech based – Apple, Google, Meta (former Facebook). Many now-a-days global tech-companies were incorporated and developed in the Silicon Valley, in California, USA – an area of strong innovation, where universities, research and startups meet.

As well described by Professor Mariana Mazzucato (University Of Sussex, UK) in the book “The Entrepreneurial State: Debunking Public vs. Private Sector Myths”, development comes from a mix between private companies and public policies driven towards innovation.

In Brazil, we also have our hub for startups, innovation e technology. It is in Curitiba (State of Parana). Inspired by the American experience, it is called “Pinhão Valley”. ‘Pinhão’ is the seed of the ‘Araucaria’, the tree symbol of the Parana State.

The project is grounded on 5 pilars:

• Reurbanisation and sustainability
• Education and entrepreneurship
• Technology
• Integration and articulation
• Legislation and fiscal incentives

It is worth pointing out some aspects of each pilar:

 1. REURBANISATION AND SUSTAINABILITY

The first pilar has to do with giving new life to deteriorated areas of the city. Some areas that a century ago had industries, warehouses, and factories are gaining new life through proper incentives and public investment.

2. EDUCATION AND ENTREPRENEURSHIP

In the education and entrepreneurship pilar, the ‘Pinhão Valley’ develops specific projects, focused on assisting entrepreneurs in their first steps, such as the company incorporation and courses on business and management. The Valley also offers coworking spaces to boost the environment of exchanging ideas and projects. Finally, there are the ‘Fab Lab’ (laboratories for fabrication), spaces filled with tech-labs, 3D scanner and printers, laser cutter, plotters, milling machines and so on.

3. TECHNOLOGY

The technology aspect of the ‘Pinhão Valley’ surpasses all the other pilars. The project aims at making Curitiba the smartest city in Brazil. Digital government is becoming reality around us. Citizens may use an App for public health appointments and many other health services. Many other services (traffic, bus lines, public lighting, damaged trees, lost animals) are available in another app developed by Curitiba. Tax paying is also digital.

4. INTEGRATION AND ARTICULATION

As for the fourth pilar, the idea is to empower people. For example, lectures and workshop focus on women as business entrepreneurs. There is a webpage that functions as space for disseminating events and opportunities. The ‘Pinhão Valley’ believes in providing opportunities and making people closer to exchange ideas is fundamental for new projects.

5. LEGISLATION AND FISCAL INCENTIVES

Last but not list, the legal environment also plays an important role in the ‘Pinhão Valley’. There are four aspects to analyze in this pilar. First is the ‘Innovation Pact’, a project that gathers 17 institutions – from private companies to universities and NGO’s. The goal is to enhance the efforts in making Curitiba the best ecosystem for innovation in Brazil. One major player in this ecosystem is the ‘Hotmilk’, the Startup incubator and accelerator from the Pontifical Catholic University of Parana (PUCPR). The second aspect is the ‘Techpark – City of Knowledge’, an incentive program that offers a reduction in the city tax (VAT) from 5% to 2%. Companies must be technologic based and the research and development (R&D) premises must be in the city of Curitiba. Further more, the third aspect is that Curitiba has enacted the “Innovation Bill of Rights”, a legal act that allows the city to play the role of an angel investor. Finally, the most recent legal development is from December 2021. It is the creation of a regulatory sandbox, to allow companies to test innovation and new business techniques related to smart cities. Curitiba was inspired by the British sandbox model.

RESULTS

The Pinhão Valley is a major project to create an innovation hub in Curitiba. After a lot of effort and investment, the results are exhilarating. Working on the legal assistance of some startups and living in the city, it come with no surprise that Curitiba is the headquarters of three Brazilian unicorns – Startups that worth over one billion dollars – Ebanx, MadeiraMadeira and Olist.

And we suppose there are more to come in the near future…

Useful websites:

More information in Portuguese about the Pinhão Valley: http://www.valedopinhao.com.br/

Mariana Mazzucato’s book: https://www.amazon.com/Entrepreneurial-State-Debunking-Public-Private/dp/1610396138/ref=sr_1_2?keywords=mariana+mazzucato&qid=1642446981&sprefix=mariana+mazzu%2Caps%2C806&sr=8-2

Ebanx: https://www.ebanx.com/br/

MadeiraMadeira: www.madeiramadeira.com.br

Olist: www.olist.com