Innovations in Brazil: Impact on GDP from Research & Engineering

Study What Economic Value Do Innovations Have?

2025-09-22 By Fraunhofer Institute for Production Systems and Design Technology IPK | Translated by AI 2 min Reading Time

FAULHABER Drive Systems

Proving the impact of research and innovation is a complex topic. A macroeconomic impact study by Fraunhofer IPK and Fraunhofer ISI has now confirmed that a national research network in Brazil contributes 0.66 percent to the country's gross domestic product (GDP).

The value of innovations has been captured in an impact study.(Image: freely licensed / Pixabay) — The value of innovations has been captured in an impact study.
(Image: freely licensed / Pixabay)

With a gross domestic product of nearly 2.2 trillion USD, Brazil is the largest economy in South America and an important player on the global stage. The country is a major exporter of raw materials as well as a producer of oil and gas but has the potential for greater value creation in technology sectors that are essential for sustainable growth. Therefore, in 2011, the Brazilian Industrial Confederation CNI (Confederação Nacional da Indústria) tasked the National Industrial Training Service SENAI (Serviço Nacional de Aprendizagem Industrial) with establishing a nationwide network of applied research institutes.

Development of an R&D network

SENAI was inspired, among other things, by the Fraunhofer Society and sought support from 18 of its institutes. Since then, the Fraunhofer Institute for Production Systems and Design Technology (IPK) has been assisting SENAI with the strategic planning and practical implementation of the R&D network. Today, 26 SENAI Innovation Institutes (ISI) with around 1,500 scientists are in operation, delivering cutting-edge research and technological developments for the Brazilian industry.

With an initial investment from SENAI and the Brazilian Development Bank (BNDES), the SENAI Innovation Institutes have carried out approximately 3,350 R&D projects with 1,325 companies over the past 12 years. The total volume amounted to around 2.5 billion Brazilian reais. More than 56 percent of these projects involved SMEs. The network also succeeded in bringing together 185 startups with 90 large companies.

Innovation institutes boost gross domestic product

To analyze the economic impact of the SENAI Innovation Institutes and demonstrate that the initial investments are paying off, the Fraunhofer IPK and the Fraunhofer Institute for Systems and Innovation Research (ISI) conducted a macroeconomic impact study on behalf of SENAI. The researchers compared GDP growth over time in regions where SENAI Institutes were established with GDP growth in regions without such institutes. The result: the SENAI Innovation Institutes contribute 0.66 percent to Brazil's total gross domestic product.

The SENAI innovation institutes contribute 0.66 percent to Brazil's total gross domestic product.

In the regions where the institutes operate, the gross domestic product per capita increased from 985 to 1210 Brazilian reais. These effects are robust, statistically significant, and show a consistent pattern over time.

Research-intensive projects drive growth

The study also shows that while technical services and consulting play a role, it is primarily research-intensive projects that drive this growth. "This confirms the transformative nature of applied research and innovation," says Prof. Dr. Holger Kohl, Deputy Director of the Fraunhofer IPK. "With the impact they achieve, the SENAI Innovation Institutes, much like Fraunhofer, demonstrate how successful research can be and how targeted investments in applied science can deliver significant economic value."

Further information:

Kohl, H., Schubert, T., et al. (2025). What is the Economic Value of Innovation? The SENAI Innovation Institutes’ Impact on the Brazilian Economy. Macroeconomic Impact Study, Executive Summary. doi.org/10.24406/publica-4902

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