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INDUSTRIAL AND INNOVATION
POLICY IN PORTUGAL
Ana Isabel Serralha
Rita Costa
PORTUGAL
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Area: 92072 km²
10 million inhabitants
Capital: Lisboa
Member of EU since
1986
 Currency: Euro
PORTUGUESE ECONOMY 2003
Expected GDP growth: - ¾%
 Reduction of consumption and investment
 Budget deficit
 International incertenty with Iraq conflict
 Summer fires – total impact still to determine
INDUSTRY AND INNOVATION
GENERAL PERSPECTIVE
POLICY MEASURES
PORTUGUESE INDUSTRY
 No industrial revolution
 Industrial development
started in the 1950’s
 EFTA
 Focus in products of low
added value: sardines,
wine, cork, textiles, shoes
and automobiles
components
Main Industrial Products
Cars
Shoes
Diesel
Animal Food
Cables
Wine
Automobile Components
Paper
Radios
Integrated Circuits
Cement
Gasoline
Cork
Hardened
Medicins
INDUSTRY’S PROBLEMS
 Low productivity
 Low level of education and know-how
 Low level of technological and
organizational innovation
 Lacking spirit of entrepreneurship
 Burocracy
 Regional disparities
INNOVATION
POLICY MEASURES
PPCE: Programme for Productivity and Economic Growth
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Improvement of legal and regulatory environments
Competition
Investment
Taxation
Protection of intelectual and industrial property
Stimulation of R&D
PROINOV: Integrated Programme for
Innovation
MAIN OBJECTIVE: attracting foreign direct investment (FDI) to help
creating new jobs in technology-intensive activities
Example of PROINOV’s actions: Promotion of clustering and co-operation
for innovation
POSI: Operational Programme on Information Society
AND
POCTI: Operational Programme for Science,
Technology and Innovation
MAIN OBJECTIVE: supporting the development of university-industry
research consortia including firms and Science and Technology
organisations
Important role in :
 the strengthening of research carried out by companies
IDEIA: Applied Research and Development in Companies
MAIN OBJECTIVE: developing university-industry research consortia
Important role in :
 the strengthening of research carried out by companies
 the intensified co-operation between research, universities and companies
 the strengthening of companies’ ability, particularly SME’s, to absorb
technologies and know-how (creation of R&D teams in companies)
The participants of the programme IDEIA can benefit from financial and fiscal
incentives.
NEST: New Technology-Based Firms
MAIN OBJECTIVE: supporting new technology-based firms (NTBF’s) through
venture capital investment
Important role in :
 the strengthening of research carried out by companies
 the start-up of technology-based companies
 the increase of the larger public’s awareness to the relevancy of an active
Innovation Policy
The support given to NEST companies includes:
• financial support
• recruitment of doctors and masters
• venture capital investments up to 90% of a NEST companies’ capital
QUADROS PROGRAMME
MAIN OBJECTIVE: improving the level of technical skills in SME’s
through financial support for the wages of young engineering,
economics, management and scientific graduates recruited by SME’s.
Important role in :
 the mobility of students, research workers and teachers
 the fostering of innovative organisational and management practises
in enterprises
 the strengthening of research carried out by companies
 the strengthening of companies’ ability, particularly SME’s, to absorb
technologies and know-how
MTTQS: Measure for Supporting the Dynamisation of
Technology, Training and Quality Systems
MAIN OBJECTIVE: promoting pre-competitive research projects
developed between technology, training and quality
infrastructures organisations and companies.
Important role in:
 the encouraging of R&D activities
 the strengthening of research carried out by companies
 the intensified co-operation between research, universities and
companies
EDUCATION RELATED MEASURES
The Portuguese Government has tried to improve the Educational
Policy by:
• giving scholarships to the best students in different fields
• creating a new Ministry for Science and Higher Education
• creating a Comission on the Teaching of Mathematics and
Science
• promoting life-long learning
• supporting the recruitment of graduates by companies
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