Brazil Proposes New Law to Regulate Public Funding and Boost Innovation in Science and Technology

Brazil is advancing efforts to enhance its science and technology sector with the introduction of Projeto de Lei 1387/26, aiming to regulate the use of public resources by research institutions and promote innovation. Presented by Deputy Ricardo Galvão, the bill sets forth new rules for Scientific, Technological, and Innovation Institutions (ICTs) regarding scholarships and partnerships, and seeks to strengthen the National System of Science, Technology, and Innovation.

Key provisions include allowing students from private ICTs to receive scholarships and extending support to funding for medical and multi-professional residencies at university hospitals. The law also encourages hiring highly qualified researchers by linking credit access to the participation of PhD holders in innovation projects, with beneficiary companies required to establish partnerships with national ICTs representing at least 15% of total credit.

To reduce bureaucratic hurdles, public ICTs, micro-enterprises, and small businesses will be exempted from bidding for contracts tied to scientifically developed goods or services. The bill further proposes tax exemptions on imports intended for research, including waivers on the Additional Freight for the Renewal of the Merchant Marine (AFRMM) and Import Tax, and removes prior customs control.

Galvão emphasizes that these measures aim to prevent brain drain and enhance Brazil's technological sovereignty while boosting economic and social development. The law also establishes criteria for ICTs to receive public funding, such as owning infrastructure and maintaining a team of researchers with advanced degrees. Support foundations will be authorized to manage ICT revenues and facilitate supply and service provision domestically and internationally.

The bill is under review by relevant parliamentary committees and requires approval from both the Chamber of Deputies and the Senate before becoming law. These regulatory steps align with Brazil's broader national strategy to foster scientific advancement and technological innovation in a competitive global landscape.