Brazilian Industrial Innovation Eases to 64.4% in 2024, Marking a Third Straight Decline

Overview

• The 2024 innovation rate fell 0.2 percentage point from 2023 and remains below the 2021 peak of 70.5%, indicating stabilization at a lower level.
• Fewer firms combined product and process innovation (32.7%), product-only innovation hit a low (12.5%), and process-only innovation rose to 19.2%.
• Participation in internal R&D dropped to 32.9%, the lowest since 2021, even as nominal corporate R&D outlays increased to R$39.9 billion from R$38.2 billion.
• Large companies stayed more active in innovation, with firms of 500+ employees at 75.4%, and sector results ranged from chemicals at 84.5% to tobacco at 29.8%.
• Use of public support rose to 38.6%, led by tax incentives used by 28.9% of innovative firms, and 96.4% plan to maintain or raise R&D spending in 2025.