Innovation financing in Brazil: an approach about the influence of fiscal incentives on industrial innovation activity

Abstract

The innovative activity and the stages that precede it, require a large amount of resources and have a characteristic of uncertainty about their return, so the financing of these activities becomes a barrier to their progress, since not always the countries have a consolidated financial system that provides the necessary credit tools. Thus, the State assumes a primary function in stimulating innovation by the productive sector through various instruments beeing the fiscal incentives most used by developing countries. In this sense, the objective of this article is to discuss, under the perspective of innovation financing, the influence of fiscal incentives in the industrial innovative activity, with emphasis on Informatics Law and Good Law, based on the literature concerning the subject, related studies and secondary data about the impacts of these legal mechanisms. It is concluded that these fiscal instruments have been important for the increase of the industrial innovation activity in the country, however, it has been concentrated in companies and sectors which they were already inherent to the productive process, besides, through the analyzed data, it was observed the large participation of self-financing as propellant of investment in innovation, indicating the indispensability of adaptations in the legislation.