{"id":254146,"date":"2018-03-16T13:53:16","date_gmt":"2018-03-16T16:53:16","guid":{"rendered":"http:\/\/revistapesquisa.fapesp.br\/?p=254146\/"},"modified":"2018-05-25T19:25:38","modified_gmt":"2018-05-25T22:25:38","slug":"brazils-leading-innovation-support-program","status":"publish","type":"post","link":"https:\/\/revistapesquisa.fapesp.br\/en\/brazils-leading-innovation-support-program\/","title":{"rendered":"Brazil\u2019s leading innovation support program"},"content":{"rendered":"

\"\"<\/a>FAPESP’s Technological Innovation in Small Businesses program (PIPE) is celebrating its 20th<\/sup> anniversary as a pioneering platform supporting technology-based companies in Brazil. In the last two decades, the program has provided 1,921 grants, 2,959 associated scholarships, and around R$400 million in funding for projects at roughly 1,200 micro, small and medium-sized enterprises in S\u00e3o Paulo State. Created to support technological innovation and encourage in-company research, PIPE has supported entrepreneurs looking to leverage science in new products or services. It often fosters innovation at one of the most critical periods in a company\u2019s life\u2014its beginnings.<\/p>\n

\u201cPIPE has combined technological innovation and merit-based opportunity to become the leading startup support program in Brazil,\u201d FAPESP President Jos\u00e9 Goldemberg said at the 20th<\/sup> anniversary ceremony on June 30. \u201cThe program was described by BNDES [Brazilian Development Bank] officials on a recent visit as \u201ca huge aquarium where investors are eager to pick their favorite fish.\u201d<\/p>\n

The program has consistently invested in research that has created both economic and social impact. Besides creating job opportunities and boosting local economies in host municipalities, PIPE-funded businesses have developed hundreds of innovative products and services. These range from tethered surveillance balloons for major events and border security, industrial automation systems and biological crop protection products to weather and air-traffic control radars, medical devices, and voice and facial recognition systems.<\/p>\n

According to FAPESP Scientific Director Carlos Henrique de Brito Cruz, who oversaw the launch of the program as then-president of FAPESP, PIPE was instrumental to S\u00e3o Paulo State\u2019s aspiration to become a global hub for startups and small technology-intensive firms. \u201cPIPE has also helped bring research into the business setting. And in doing so, it has created employment opportunities for researchers in small businesses and contributed to economic development in S\u00e3o Paulo State and throughout Brazil,\u201d he said.<\/p>\n

From 2010 to 2012, submissions and proposals declined in both number and quality, resulting in fewer grants. In 2012 it became a policy at FAPESP to organize \u201cSmall Business Innovation Dialogs\u201d in advance of the proposal submission deadline to provide clarification on the program to potential applicants. The number of calls for proposals each year also increased to four, further enhancing the program.<\/p>\n

According to S\u00e9rgio Queiroz, a professor at the University of Campinas (UNICAMP) and assistant coordinator for research and innovation at FAPESP, many supported businesses have already reached a high level of maturity, growing their revenues exponentially and launching a range of innovative products. Among these are Griaule, a firm developing fingerprint recognition software and algorithms such as those used in Brazil\u2019s electronic voting terminals; Promip Manejo Integrado de Pragas, a company developing pest control products for vegetable growers; and I-Systems, a developer of software systems using artificial intelligence for process control at companies such as Coca-Cola, Braskem, Ambev, and Suzano. Other businesses, Queiroz says, are still developing. These include Braincare, a manufacturer of medical devices and clinical monitoring sensors; Inprenha, a biotechnology company in the animal breeding segment; and VR Monkey, a provider of virtual reality solutions.<\/p>\n

\"\"<\/a>Inspiration from a predecessor<\/strong>
\nWhen it launched the PIPE program, FAPESP made research history, becoming the first research-funding agency in Brazil to provide non-repayable funding directly to small businesses. PIPE required funded research projects to be done within beneficiary companies and that they develop a product, process, or service with innovative potential. As noted by Jos\u00e9 Fernando Perez, FAPESP\u2019s scientific director at the time, the program made businesses the locus of innovation, a concept then unprecedented in Brazil.<\/p>\n

PIPE drew inspiration from the Small Business Innovation Research (SBIR) program created by the Small Business Innovation Development Act in 1982 to support innovative research and development (R&D) at small and medium-sized businesses in the United States (see article<\/a><\/em>). SBIR is administered by 11 government agencies\u2014including the National Science Foundation (NSF)\u2014which allocate 3.2% of their R&D budgets to the program. In terms of percentage, FAPESP allocates twice as much (see chart<\/a><\/em>) to its counterpart, PIPE.<\/p>\n

Researcher and professor Alcir Jos\u00e9 Monticelli (1946\u20132001) of the School of Electrical Engineering at UNICAMP was the first to suggest that FAPESP create a program similar to SBIR. In 1996, on a visit to advise the NSF on selecting SBIR grant recipients, he immediately realized how important it would be to develop a similar program back home to catalyze innovation and knowledge transfer from academia to the business world.<\/p>\n

On returning to Brazil, he shared his thoughts with Jos\u00e9 Fernando Perez. In a short space of time, his proposal was crafted into a program and approved by FAPESP\u2019s Board of Trustees. During the program launch ceremony on June 18, 1997, Governor Mario Covas said: \u201cThe Foundation will be a highly important and effective tool in assisting these [technology-based] firms. FAPESP needs to remain aggressive in terms of not waiting for research demand to come its way, but instead driving, anticipating, and promoting R&D.\u201d<\/p>\n

During the ceremony, Brito Cruz stressed the importance of the program, noting that: \u201cLocally developed science needs to translate into GDP [Gross Domestic Product], and GDP is driven by industry. So more than ever, the challenges of competing in a globalized world mean science and technology need to be embedded in value chains.\u201d<\/p>\n

Through PIPE and the Partnership for Technological Innovation program (PITE), implemented in 1995, the Foundation built an innovation culture in S\u00e3o Paulo that has since been replicated by other development agencies across Brazil. PITE provides funding for university research projects that are developed in collaboration with, and are cofunded by, corporate research centers in Brazil or other countries.<\/p>\n

PIPE uses a gated, three-phase program structure. Phase 1, with a duration of nine months, involves research projects at an initial stage and is intended to establish the technical and commercial feasibility of innovations proposed to solve a research problem. In phase 2, which can last up to two years, the research project proper is developed and may progress to the point of building a prototype, for example. When the program was first created, the funding limit for phases 1 and 2 was respectively R$50,000 and R$200,000. In 2015 the Foundation raised the ceiling to respectively R$200,000 and R$1 million.<\/p>\n

\"\"<\/a>Phase 3 involves the final development of the innovation into a product or service and placement on the market. Because under its by-laws the Foundation is permitted only to fund research and not the development of commercial products, this stage is carried out in collaboration with partner agencies, hitherto the Brazilian Funding Authority for Studies and Projects (FINEP), the agency managing the Support for Research in Businesses Program (PAPPE).<\/p>\n

The FAPESP-FINEP collaboration to support phase 3 PIPE projects was agreed in 2004 and materialized as the PAPPE-PIPE III program. Its first call for proposals selected 20 businesses for support. Managed by FINEP in partnership with State Research Foundations (FAPs), PAPPE provides funding for innovative product and process R&D efforts undertaken by researchers working directly or in collaboration with technology-based firms. In addition to supporting phase 3 projects within PIPE, the program also issues calls for proposals targeting specific research interests (see article<\/a><\/em>).<\/p>\n

The largest portfolio do date<\/strong>
\nFAPESP has from time to time implemented changes in its program rules and policies. Originally, researchers were eligible to receive program funding if they were linked to small businesses with up to 100 employees based in the state of S\u00e3o Paulo. PIPE eligibility was later extended to companies in S\u00e3o Paulo with up to 250 employees. The number of calls for proposals also rose from two to four per year (one every three months). The program began with an annual funding allocation of what today would amount to R$2.5 million, and currently has a budget of R$60 million for phases 1 and 2.<\/p>\n

Out of total program grants as of late November this year, 1,941 are phase 1 and 2 projects. The remaining 97 are in phase 3. In its first year, PIPE selected just 30 project candidates, awarding a total of R$1.3 million in investment. Of the successful candidates in the single call for proposals in 1997, many were firms engaged in research on fiber optics and computer systems, followed by businesses in the field of biology and especially genetics.<\/p>\n

A decade later, the number of grants had leaped to 118 in the year, and funding disbursements to around R$30 million (see charts<\/a><\/em>). This year the program is looking to outperform 2016\u2019s 228 proposals and R$55.5 million in funding, PIPE\u2019s best results to date. \u201cWe awarded virtually one research grant for every working day in the year,\u201d says Brito Cruz, underlining the Foundation’s efforts to expand the program despite the financial crisis in Brazil and the toll it took on FAPESP\u2019s budget.<\/p>\n

To date, companies from 127 municipalities have received research funding through PIPE. Most are located in major research and innovation centers that are home to large universities and research institutes, such as S\u00e3o Paulo, Campinas, S\u00e3o Carlos, S\u00e3o Jos\u00e9 dos Campos and Ribeir\u00e3o Preto. But program funding has also found its way to small but economically vibrant cities like Botucatu, S\u00e3o Jos\u00e9 do Rio Preto, Sorocaba, Piracicaba, Jaboticabal, Mogi Mirim, Santos, Paul\u00ednia, Araraquara and Diadema. \u201cThat these projects will emerge where the top universities and research institutions are is to be expected. Technology-based innovation doesn\u2019t arise in a vacuum,\u201d explains Brito Cruz.<\/p>\n

\"\"<\/a>But even with the benefit of PIPE funding, the journey a small technology-based firm must travel to develop and grow is not without perils. An assessment of 214 PIPE projects developed in the first decade of the program (1997\u20132006) by 185 firms showed an 8% mortality rate in the total sample of supported companies. The rate was highest among firms created ad hoc<\/em> to submit PIPE applications (22%). But these rates were well below the 70% average for technology-based businesses at the time, as reported by the Brazilian Small Business Support Service (SEBRAE). One of the main reasons entrepreneurs cited for going out of business was the difficulty obtaining funding for operating and capital expenditure.<\/p>\n

Conducted by UNICAMP’s Laboratory for Studies on the Organization of Research and Innovation (GEOPI), the survey found that PIPE had had an impact on several fronts. Around 60% of evaluated projects had created technological innovations, a rate generally deemed satisfactory. Of a total of 111 innovations, 59 were novel at a national level, 17 at a global level, and 29 at the company level. \u201cThese innovations were essentially oriented to products, followed by software and processes. All were technology-based innovations and therefore consistent with PIPE\u2019s founding mandate,\u201d explains S\u00e9rgio Salles-Filho, a coordinator at GEOPI.<\/p>\n

The survey also found that 52% of the 214 projects would not have existed had they not received PIPE funding\u2014SBIR, the program\u2019s US counterpart, has reported a similar percentage of 65%. Some supported firms\u201412 to be precise\u2014were spin-offs from other companies. The survey found, however, that 23 new startups had been created, of which 21 credited PIPE with playing a vital role in their development.<\/p>\n

Supported firms saw a 40% increase in the number of formal employees. PIPE projects also helped create skilled job posts and led to an increased number of company employees with undergraduate degrees (60%) and PhDs (91%).<\/p>\n

A fresh PIPE assessment report being developed for the period 2007 to 2016 will also benchmark project outcomes against peer programs in countries such as the US, France, and Japan. \u201cPIPE will be monitored continuously, with data collected at project close and two years subsequent,\u201d says Salles-Filho.<\/p>\n

\"\"<\/a>Future challenges<\/strong>
\nWhile recognizing the program\u2019s success in its first 20 years, Brito Cruz is now focused on the challenges lying ahead. \u201cFAPESP hopes that in the coming years supported firms will set global ambitions for their research efforts, leading to the development of a new generation of S\u00e3o Paulo\u2013based firms that are uniquely attractive to international investors. But to achieve this would require developing world-class products. This will be our biggest challenge over the next 10 years,\u201d says the FAPESP scientific director.<\/p>\n

The Foundation is considering a number of initiatives toward these goals. The first is a small business innovation program aimed at supporting the development of disruptive technologies. \u201cWe recognize how meager innovation rates are in Brazil and hope to tackle this head on,\u201d says Carlos Am\u00e9rico Pacheco, CEO of FAPESP\u2019s Executive Board.<\/p>\n

The second is internationalization, helping supported firms incubate or locate in other countries. \u201cWe will explore opportunities to work with partners around the world to help S\u00e3o Paulo firms reach new heights on the global scene,\u201d says Pacheco.<\/p>\n

Lastly, FAPESP plans to further establish PIPE\u2019s presence in the venture capital, angel investment, accelerator and incubator arena. \u201cWe\u2019re still too isolated both in terms of connections with large corporations managing investment funds and in terms of innovation networking,\u201d says the FAPESP chief. \u201cWorking more closely would be beneficial both to PIPE and to the broader ecosystem.\u201d<\/p>\n

\"\"

L\u00c9O RAMOS CHAVES<\/span><\/a> Producing monoclonal antibodies at the Butantan Institute, Recepta Biopharma\u2019s research partnerL\u00c9O RAMOS CHAVES<\/span><\/p><\/div>\n

Antibodies to fight tumors<\/strong><\/p>\n

This year Recepta Biopharma celebrated US pharmaceutical company Mersana\u2019s successful animal model results for a novel drug for cancer treatment. The drug, which in December proceeded to clinical trials in human patients, was created from a monoclonal antibody (RebmAb 200) developed by the Brazilian firm in collaboration with the Butantan Institute, building on an earlier project funded by the Partnership for Technological Innovation program (PITE) (see<\/em> Pesquisa FAPESP,<\/em> issue No.<\/em> 204<\/em><\/a>). \u201cThis is Brazil\u2019s first internationally licensed drug patent for cancer treatment,\u201d says physicist Jos\u00e9 Fernando Perez, a director at Recepta. The original antibody, isolated from rodents, was licensed to the Brazilian researchers by the Ludwig Institute for Cancer Research in New York and modified in Brazil to be tested in humans (or \u201chumanized,\u201d in technical jargon). Successful licensing and testing progress have helped to secure Recepta\u2019s first revenues of R$8 million since the firm was created in 2006. \u201cOur success owes much to the value and knowledge provided by the earlier PITE-supported project,\u201d he says. If approved, Recepta will own marketing rights to the drug in Brazil and intends to supply it at more affordable prices to the national health care system.<\/p>\n

The company was also awarded a PIPE-funded project in which it developed an antibody for treating central nervous system tumors. The feasibility studies, however, did not support continued investment. As often happens in science, some projects will prove unsuccessful, while others will take years to develop into products. Recepta has 16 employees, 13 of which are dedicated to research.<\/p>\n

\"\"

L\u00c9O RAMOS CHAVES<\/span><\/a> Developing components for the CBERS satellite at Omnisys labsL\u00c9O RAMOS CHAVES<\/span><\/p><\/div>\n

At the cutting edge of the aerospace industry
\n<\/strong>PIPE-supported firms develop equipment for satellite and weather radar systems<\/em><\/p>\n

In the early 2000s, four companies attracted notice for their locally designed and developed instruments for satellite and radar systems. Omnisys, Orbital, Orbisat (now Bradar), and Equatorial Sistemas produced technologies that were then in short supply in Brazil, largely destined for the Brazilian Space Program. All were supported by the PIPE program. Founded in 1997 by three electronics engineers, Omnisys, of S\u00e3o Bernardo do Campo, specialized in the development of weather radars for aviation applications (see<\/em> Pesquisa FAPESP,<\/em> issues No. 117<\/a> and No. 212<\/a><\/em>). In all, the firm has been awarded 15 PIPE projects. In 2006, the company was acquired by French-based defense, security and aerospace contractor Thales Group. Omnisys also developed components for the China-Brazil Earth Resources Satellite (CBERS) and the Amaz\u00f4nia-1 environmental monitoring satellite programs.<\/p>\n

Like Omnisys, Orbisat and Equatorial of S\u00e3o Jos\u00e9 dos Campos were later acquired by larger corporations. Orbisat was renamed Bradar when in 2011 it became a division of the Embraer Defense & Security conglomerate. The company, which specialized in developing electronic systems and sensors such as air and ground surveillance radar systems, carried out three PIPE projects between 1999 and 2015 (see<\/em> Pesquisa FAPESP, issues No. 149<\/a> and No. 231<\/a><\/em>).<\/p>\n

\"\"

L\u00c9O RAMOS CHAVES<\/span><\/a> A researcher testing electronics for a radar system designed by Embraer Group\u2019s BradarL\u00c9O RAMOS CHAVES<\/span><\/p><\/div>\n

Created in 1996, Equatorial received funding support through seven PIPE programs, developing a range of equipment and operating systems for the CBERS, the Amaz\u00f4nia-1, and NASA’s Acqua satellite, launched in 2002. Four years later, European multinational Airbus acquired a controlling interest in Equatorial. In 2017, Airbus sold its stake to Brazil\u2019s Akaer, a contractor working on the Swedish Gripen fighter program for the Brazilian Air Force (FAB). Equatorial also develops equipment for Sirius, a light source being built by the Brazilian Synchrotron Light Laboratory (LNLS) in Campinas (see<\/em> Pesquisa FAPESP,<\/em> issues No. 61<\/a> and No. 234<\/a><\/em>).<\/p>\n

Another S\u00e3o Jos\u00e9 dos Campos firm, Orbital, develops propulsion technology for small rockets, including ethanol-fueled engines, in collaboration with the Brazilian Aeronautics and Space Institute (IAE). Founded in 2000 and with eight PIPE grants to date, the firm has produced solar panels and other on-board systems for the CBERS and Amaz\u00f4nia-1 satellite programs.<\/p>\n

Orbital is part of the technology transfer program for the Brazilian Government’s Geostationary Defense and Strategic Communications Satellite (SGDC) project. The company was selected as an SGDC recipient of technology for building satellite power systems and solar generators. The satellite, which was launched into orbit this year, was produced by Franco-Italian aerospace manufacturer Thales Alenia Space (see<\/em> Pesquisa FAPESP,<\/em> issues No. 99<\/a> and No. 256<\/a><\/em>).<\/p>\n

\"\"

EDUARDO CESAR <\/span><\/a> Altave balloons are used for surveillance in large-scale events and to provide internet and mobile telecommunications in remote locationsEDUARDO CESAR <\/span><\/p><\/div>\n

Internet and surveillance with tethered balloons<\/strong><\/p>\n

Altave, in S\u00e3o Jos\u00e9 dos Campos, has developed a range of tethered balloons carrying surveillance cameras and communications devices for remote locations without access to telecommunications or internet service. Founded in 2011 by engineers Bruno Avena and Leonardo Nogueira after they graduated from the Technological Institute of Aeronautics (ITA), the company has delivered broadband and surveillance capabilities to events in rural areas, as well as the 2013 Confederations Cup in Brazil and the Rio 2016 Olympic Games.<\/p>\n

The systems were deployed at these events to monitor the venues and surrounding areas with airborne cameras, some with high resolution and zooming capabilities. Four balloons, or aerostats, were deployed for the Olympics, each with 13 on-board cameras. The aerostats are tethered between 50 and 200 meters (m) above the ground. For internet applications, they receive the signal from ground equipment and broadcast it to areas without an internet connection (see<\/em> Pesquisa FAPESP,<\/em> issue No. 257<\/em><\/a>).<\/p>\n

Since 2011, the company has been awarded 10 PIPE grants to develop tethered balloon systems, ground equipment, and proprietary control software. In 2016 the firm grossed R$13 million. Of its 30 employees, 21 are involved in R&D. This year Altave made an agreement with Airstar Aerospace, a French balloon manufacturer, to distribute its aerostats in Europe. Altave has also taken its balloons to Argentina for a trial demonstration of mobile phone service delivery in the event conventional systems are down.<\/p>\n

\"\"

l\u00e9o ramos chaves<\/span><\/a> Griaule specializes in digital identification systems such as those used by Brazil\u2019s Electoral Justice Departmentl\u00e9o ramos chaves<\/span><\/p><\/div>\n

Advanced identification and information systems<\/strong>
\nSoftware and sensors improve voting system reliability and enhance process control<\/em><\/p>\n

Three PIPE grant recipients\u2014Griaule and I-Systems, in Campinas, and Nexxto, in S\u00e3o Paulo\u2014have developed advanced Internet of Things and artificial intelligence capabilities. Founded in 2002, Griaule posted revenue of R$40 million last year. The company has developed and supplied the technology used in electronic voting machines in Brazil (see<\/em> Pesquisa FAPESP, issue No. 255<\/em><\/a>), and has been selected to provide the digital identification software currently being implemented by Brazil\u2019s High Electoral Court (TSE).<\/p>\n

The firm has also developed face and palm recognition technology used by companies in Brazil, the US, Israel, Argentina, Mexico, and India, and currently exports products to 74 countries worldwide. Griaule has received funding for three PIPE projects, the first in 2003. It then had just five employees, and now has 45, half of which are dedicated R&D staff.<\/p>\n

Nexxto was founded in 2010 under the name Rfideas as a developer of RFID (radio frequency identification) tags. RFID tags are used to identify, track, and manage computer equipment such as desktop and laptop computers. They are also used on personal identification badges and on product packaging for tracking during transportation from factory to recipient.<\/p>\n

\"\"

Nexxto <\/span><\/a> A Nexxto temperature and humidity sensorNexxto <\/span><\/p><\/div>\n

Nexxto was awarded two PIPE grants to develop its technology. In 2015, it developed a system that uses internet of things principles to monitor temperature and humidity in cold food storage applications such as freezers, refrigerated counters and cold rooms (see<\/em> Pesquisa FAPESP,<\/em> issue No. 259<\/em><\/a>). The system, which is supplied primarily to supermarkets and restaurants, sends mobile notifications in the event that cold storage systems are shut off due to a power outage, for example.<\/strong> The company made R$2.2 million in revenue in 2016, the year it first exported its technology to Uruguay. Nexxto has 11 employees, five dedicated to R&D.<\/p>\n

I-Systems specializes in software and sensor systems using artificial intelligence for process control. One of the first commercial applications for the technology was in soft drink bottle filling processes. Because bottling machines are generally unable to fill bottles with the exact amount specified on the label, manufacturers will typically set up the bottling process to add 5% more product. I-Systems developed a solution allowing bottlers to regulate their machines to inject only 1% more than the amount noted on the label, saving 4% per bottle (see<\/em> Pesquisa FAPESP,<\/em> issue No. 211<\/em><\/a>).<\/p>\n

The company also provides solutions for equipment control systems, such as focus control in video cameras. The firm was founded in 2004 by four partners\u2014three computer engineers and a mathematician\u2014all alumni from the University of Campinas (UNICAMP). Of the company\u2019s 40 employees today, nine are actively engaged in innovation.<\/p>\n

\"\"

PROMIP<\/span><\/a> A Bug-produced wasp that parasitizes aphids, one of the most important soybean pestsPROMIP<\/span><\/p><\/div>\n

Biological pest control in agriculture
\n<\/strong>Three supported companies develop insect, mite and fungi to replace pesticides<\/em><\/p>\n

Brazil\u2019s biological pest control sector is growing at rates of between 15% and 20% per year according to estimates from the Brazilian Association of Biological Control Companies (ABCBIO), and is expected to see even faster growth as farmers increasingly use insects, fungi, bacteria and viruses\u2014instead of pesticides\u2014to fight pests. Two small S\u00e3o Paulo firms\u2014Bug and Promip, both founded in the previous decade by alumni from the Luiz de Queiroz School of Agriculture at the University of S\u00e3o Paulo (ESALQ-USP)\u2014have developed and brought to market a range of insects and microorganisms suited for a variety of crops.<\/p>\n

Bug, in Piracicaba, produces four species of small wasps that prey on important pests of sugarcane, corn, soybean, tomato, and sorghum crops (see<\/em> Pesquisa FAPESP,<\/em> issue No. 195<\/em><\/a>). Founded in 2001, it received PIPE-awarded funding for three research projects. Since 2009, it has received investment on three occasions from venture capital funds, totaling R$9 million. Bug has 85 employees, including three dedicated to R&D, and last year reported sales of R$12 million.<\/p>\n

\"\"

bug<\/span><\/a> Koppert fungi are effective against crop parasitesbug<\/span><\/p><\/div>\n

Promip started business in 2006 in Limeira and today has units in Engenheiro Coelho and Conchal, all in the state of S\u00e3o Paulo. The company produces three species of mites for vegetable, fruit, flower, and mushroom plantations, as well as two wasp species for sugarcane and soy. \u201cOne of the company’s research interests is the commercial production of stingless native bees for pollination,\u201d says Marcelo Poletti, a partner at Promip (see<\/em> Pesquisa FAPESP,<\/em> issue No. 236<\/em><\/a>). The company has been awarded six PIPE projects since inception. In 2014, it received R$4 million in funding from Fundo de Inova\u00e7\u00e3o Paulista, an innovation fund established by the S\u00e3o Paulo Development Agency (Desenvolve SP). The company generated revenues of R$9 million in 2016 and has 100 employees, 30 of which are involved in R&D.<\/p>\n

Dutch company Koppert Biological Systems, a two-time PIPE grant recipient and a leading biological control firm, with a presence in 26 countries, established operations in Piracicaba, S\u00e3o Paulo, in 2011. The company produces fungi solutions for agriculture as well as predatory wasps and mites for a variety of crops. In 2016 the company reported R$45 million in revenue and reached an agreement with FAPESP to create an Engineering Research Center linked to the Partnership for Technological Innovation program (PITE). Among the center\u2019s research projects for which calls for proposals have been launched are processes for the production, large-scale automation, and development of new organisms originating from Brazilian biodiversity.<\/p>\n

\"\"

SAVEWAY<\/span><\/a> A hand-held device scanning a Saveway tire tagSAVEWAY<\/span><\/p><\/div>\n

Electronic tire monitoring tags<\/strong><\/p>\n

Campinas-based Saveway has developed an electronic tire wear monitoring tag system for trucks, buses, and agricultural machinery. The solution is designed for trucking companies, sugarcane mills, and bus companies managing large fleets and therefore tens of thousands of individual tires. Tires are typically retreaded as many as three times at 80,000 to 100,000 kilometer intervals.<\/p>\n

Saveway\u2019s tire tags use RFID (radio frequency identification) technology and are installed on the inner wall of the tire. \u201cThey use radio frequency signals to transmit an ID number to a proprietary hand-held device,\u201d says mechanical engineer Jos\u00e9 Caruso Gomes, a partner at Saveway. These numbers tell system users which tires are being used on a given vehicle. Saveway has created a software platform that is used with the tire tags to track tire mileage and log information about tire defects.<\/p>\n

\u201cWe have developed a robust tag and software system that allows tire repair technicians to quickly identify as many as 60 tire issues and predict when a tire will need to be retreaded,\u201d says Gomes. Saveway was awarded five PIPE projects and partnered with the Renato Archer Information Technology Center (CTI) and the University of Campinas (UNICAMP) to develop the technology. The company has 13 employees and projects sales of R$800,000 this year.<\/p>\n

\"\"

VR Monkeys<\/span><\/a> A scene in Dinos do Brasil<\/em>, produced by VR MonkeyVR Monkeys<\/span><\/p><\/div>\n

Virtual reality for schools and corporations<\/strong><\/p>\n

With virtual reality as its raw material and education and training as its end product, VR Monkey was founded in 2013 originally as a video game and mobile app developer, but shifted its business two years later to virtual reality content viewed with special head-mounted displays providing visual and auditory immersion. The company\u2019s first virtual reality animation, geared to elementary schools, was As sete maravilhas do mundo antigo <\/em>(The seven wonders of the ancient world). Then came the series Dinos do Brasil<\/em> (Brazilian dinosaurs), depicting 15 prehistoric animals that inhabited modern-day Brazil. This material is now among the permanent exhibits at S\u00e3o Paulo\u2019s Catavento Museum.<\/p>\n

\u201cThe three PIPE projects we had helped us develop technology at larger scale and produce longer animations,\u201d says computer engineer Pedro Kayatt, one of S\u00e3o Paulo\u2013based VR Monkey’s three founding partners. The company\u2019s R$220,000 in sales last year are expected to double in 2017. Of the company’s 14 employees, six have PIPE-awarded scholarships. In addition to educational content, the company provides corporate virtual reality solutions for employee training. Among its clients are the mining division of \u200b\u200bVotorantim, steel maker Gerdau, and pulp and paper manufacturer Klabin.<\/p>\n

\"\"

EDUARDO CESAR<\/span><\/a> A Magnamed ambulance lung ventilator…EDUARDO CESAR<\/span><\/p><\/div>\n

Local medical device innovation<\/strong>
\nNew lung ventilators and heart rate and intracranial pressure monitors add to homegrown medical offering<\/em><\/p>\n

Three PIPE-supported firms have developed new medical products for application areas such as cardiology, pneumology, neurology, and emergency care. The S\u00e3o Paulo company Magnamed has developed and manufactures two types of lung ventilators, one designed to assist patient breathing in intensive care units (ICUs) and the other, a portable model for use in ambulances, to help doctors and paramedics provide first aid to patients with difficulty breathing.<\/p>\n

The company, which has worked on five PIPE projects to date, began operation in 2005. Its first device, OxyMag, was launched in 2008 and its second, Flexmag, in 2010 (see<\/em> Pesquisa FAPESP,<\/em> issue No. 259<\/em><\/a>). Both are now exported to markets in Latin America and Asia, with outbound sales accounting for 30% of the company\u2019s R$34 million in revenue in 2016. Magnamed employs 15 people\u2014out of a total of 100\u2014in R&D.<\/p>\n

\"\"

BRAINCARE<\/span><\/a> …and Braincare intracranial pressure monitorBRAINCARE<\/span><\/p><\/div>\n

Ventrix is currently \u200b\u200bfinalizing the development of a wireless electrocardiography device to be launched in 2018. The device, developed with PIPE-awarded funding, is used to monitor heart rate and arrhythmias outside a hospital or in an emergency setting. Conventional Holter or ambulatory electrocardiography devices have several leads and electrodes that need to be attached to the patient. The Ventrix device is just 8 centimeters (cm) long and 5 cm wide and is attached to the patient via a single electrode. It is fully wireless and transmits data over the internet to a central repository. The company, based in Cotia and founded in 2005, specializes in the manufacture of conventional equipment for cardiology. Last year it reported revenues of R$1.5 million. It has 18 employees, six in R&D. To produce the new heart monitor, Ventrix is \u200b\u200bsetting up a factory in Santa Rita do Sapuca\u00ed, Minas Gerais.<\/p>\n

Braincare, in S\u00e3o Carlos (see<\/em> Pesquisa FAPESP,<\/em> issue No. 221<\/em><\/a>), has developed a portable device for noninvasively monitoring intracranial pressure in trauma, hydrocephalus and stroke patients. The device was designed by physicist Sergio Mascarenhas, a retired professor from the S\u00e3o Carlos Institute of Physics at the University of S\u00e3o Paulo (IFSC-USP), who began developing the device in 2007 and founded the company in 2014. In all, Braincare has developed six PIPE-funded projects. \u201cWe\u2019re now finalizing the business plan, adapting the device to our target marketing model, and raising funds for production,\u201d says company CEO Pl\u00ednio Targa.<\/p>\n

\"\"

INVITRO<\/span><\/a> A system developed by In Vitro Brasil (IVB) extends embryo shelf life to 90 daysINVITRO<\/span><\/p><\/div>\n

Cattle reproduction technology<\/strong>
\nS\u00e3o Paulo firms excel in embryo production and pregnancy rate enhancement technology<\/em><\/p>\n

Brazil has the largest cattle population in the world, with 218 million heads of cattle for beef, dairy, and leather production. Recently, new productivity-enhancing technologies have been developed for the sector by two firms relying on PIPE funding. In Vitro Brasil (IVB), a company founded in 2002 in Mogi Mirim, has been awarded five PIPE projects to date. The company specializes in in vitro<\/em> production of bovine embryos of high genetic quality and has created a media manufacturing system that extends shelf life to 60 days. Before, fresh culture media had to be produced every week (see <\/em>Pesquisa Fapesp,<\/em> issue No. 231<\/em><\/a>).<\/p>\n

\u201cOther process enhancements, such as improved cryopreservation [embryo freezing], have firmly established the company as the world\u2019s leading producer of bovine embryos, with a global market share greater than 50%,\u201d says Andrea Basso, head of research and development at IVB. \u201cThese technologies have allowed us to ship frozen embryos to more distant locations, opening doors to a new market.\u201d<\/p>\n

According to Basso, thanks to the company\u2019s newly developed system, a rancher in the Northeast of Brazil, for example, can purchase embryos from high-performance herds in S\u00e3o Paulo and Minas Gerais and have a genetically renewed herd in less than a year. In 2015, the company was sold for R$90 million to US-based bull spermatozoa producer ABS Global. IVB has retained its name and business activities, has 268 employees, and recorded revenues of R$28 million in 2016.<\/p>\n

Inprenha, a nine-person company in Jaboticabal and a recipient of four PIPE grants, developed a new method for improving success rates in artificial breeding techniques. The company used a lectin protein present in various mammalian tissues to formulate a biological product that has proven to increase pregnancy rates in tests on cattle, buffalo, and goats.<\/p>\n

\u201cWe used the recombinant bacteria method to produce a protein for use in breeding techniques such as in vitro<\/em> fertilization and artificial insemination,\u201d says Inprenha production director Marcelo Roncoletta, noting that the new method has successfully improved pregnancy rates in cattle by 7% to 14% across the different techniques. The product is soon to be launched on the market pending registration with the Ministry of Agriculture. A spin-off from Top in Life, a S\u00e3o Paulo company specializing in goat and sheep semen and embryos, Inprenha has now begun studies toward testing the product in humans.<\/p>\n

Identification of yeasts<\/strong><\/p>\n

A study on the genetics of the yeast Saccharomyces cerevisiae<\/em>, conducted as part of biomedical engineer D\u00e9bora Colombi\u2019s postdoctoral research at S\u00e3o Paulo State University (UNESP), led to the creation of Genotyping, a biotechnology firm in Botucatu that posted sales of R$1.5 million in 2016. \u201cWith a 15-strong team today, the company was founded after the award of our first PIPE project in 2008,\u201d says Colombi. Saccharomyces<\/em> is used to ferment sugarcane juice in the production of ethanol. Ethanol plants purchase selected strains of the microorganism that are optimal for production, but face problems when rogue yeasts carried from the cane fields on harvested cane stalks decrease production efficiency.<\/p>\n

\u201cWe developed a method based on microsatellites [short repeat motifs in the genome of a species that function as markers for genetic variation] to identify each yeast strain in the fermentation vats [where sugarcane juice is mixed with yeast],\u201d says Colombi. The plants bring samples from each vat to our company for analysis. If there is a prevalence of non-productive yeasts, all the material in the relevant vat will need to be replaced.<\/p>\n

Genotyping has been awarded five PIPE projects so far, mostly involving the development of molecular markers to distinguish yeast strains and testing kits for easier and faster identification of microorganisms. Researchers from the company are now analyzing bacteria that feed on sugarcane juice and compete with Saccharomyces<\/em>, with adverse effects on production.<\/p>\n

In 2015, Genotyping received funding from the S\u00e3o Paulo Innovation Fund under Desenvolve SP, in partnership with FAPESP, the Brazilian Funding Authority for Studies and Projects (FINEP), the Brazilian Small Business Support Service (SEBRAE) in S\u00e3o Paulo, and the Development Bank of Latin America (CAF).<\/p>\n

At the fund\u2019s suggestion, Genotyping became a holding company providing human genetic testing services, but without discontinuing its yeast identification business. The company\u2019s offering now comprises paternity tests and screening for rare and hereditary diseases, which since 2016 have been covered by health insurance plans in Brazil. Another company belonging to the group, Biotecnologia Pesquisa e Inova\u00e7\u00e3o (BPI), conducts R&D and offers the services that Genotyping originally developed for applications in agriculture, manufacturing, universities, and research institutes.<\/p>\n

\"\"

L\u00c9O RAMOS CHAVES<\/span><\/a> A propolis-impregnated cellulose biomembrane produced from bacteria of the genus Komagataeibacter<\/em> by Apis FloraL\u00c9O RAMOS CHAVES<\/span><\/p><\/div>\n

Technologically enhanced honey and propolis products<\/strong><\/p>\n

Honey and propolis are the two main raw materials used at Apis Flora, a company founded in 1982 in Ribeir\u00e3o Preto. The company produces more than 100 pharmaceutical ingredients and medicine and food products distributed to more than 6,000 points of sale. In the mid-1990s, the company began investing in the development of technologically value-added products and collaborating with universities to produce more sophisticated medicines from honey and propolis. Among its newly developed products were high-concentration propolis microparticles produced by converting liquid propolis into a dry powder retaining the same pharmacological properties as the initial product. The company filed a patent with the Brazilian National Intellectual Property Institute (INPI) and currently exports about 18 tons per year to China (see<\/em> Pesquisa Fapesp, issue No. 241<\/em><\/a>).<\/p>\n

Since 2011, Apis Flora has received PIPE funding for seven research projects. Two of these projects involved the development of biobandages made using propolis-impregnated cellulose biomembranes produced from bacteria of the genus Komagataeibacter<\/em>. The biobandages are used to treat hard-to-heal wounds, burns, and chronic skin ulcers. The product has completed clinical trials in humans and is pending Brazilian Health Regulatory Agency (ANVISA) approval.<\/p>\n

In another project, the company developed a mucoadhesive gel to treat the fungal infection vaginal candidiasis, in a collaboration with the University of S\u00e3o Paulo\u2019s Ribeir\u00e3o Preto School of Pharmaceutical Sciences (FCFRP-USP). \u201cThis product is currently being tested in a human clinical trial,\u201d says Andresa Berretta, head of research, development, and innovation at Apis Flora. The company posted revenue of R$38.8 million in 2016. Out of its 103 employees and trainees, 13 are dedicated to research.<\/p>\n

As research continued to build momentum, Berretta and co-researcher Franciane Marquele de Oliveira convinced Apis Flora\u2019s owners to create Eleve, a startup dedicated to developing innovative drug delivery systems with expired patents. The new business is staffed by two researchers and three trainees and is being incubated within Apis Flora. Eleve has been awarded four PIPE projects since 2015. One is developing a nanotech formulation for an existing topical and oral drug against leishmaniasis. A second project is investigating a three-dimensional human skin model for testing cosmetic and anti-aging formulations.<\/p>\n","protected":false},"excerpt":{"rendered":" PIPE has funded nearly 2,000 R&D projects in S\u00e3o Paulo","protected":false},"author":475,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[1235],"tags":[234,243],"coauthors":[785],"class_list":["post-254146","post","type-post","status-publish","format-standard","hentry","category-special-2","tag-finance","tag-innovation"],"acf":[],"_links":{"self":[{"href":"https:\/\/revistapesquisa.fapesp.br\/en\/wp-json\/wp\/v2\/posts\/254146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/revistapesquisa.fapesp.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/revistapesquisa.fapesp.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/revistapesquisa.fapesp.br\/en\/wp-json\/wp\/v2\/users\/475"}],"replies":[{"embeddable":true,"href":"https:\/\/revistapesquisa.fapesp.br\/en\/wp-json\/wp\/v2\/comments?post=254146"}],"version-history":[{"count":0,"href":"https:\/\/revistapesquisa.fapesp.br\/en\/wp-json\/wp\/v2\/posts\/254146\/revisions"}],"wp:attachment":[{"href":"https:\/\/revistapesquisa.fapesp.br\/en\/wp-json\/wp\/v2\/media?parent=254146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/revistapesquisa.fapesp.br\/en\/wp-json\/wp\/v2\/categories?post=254146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/revistapesquisa.fapesp.br\/en\/wp-json\/wp\/v2\/tags?post=254146"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/revistapesquisa.fapesp.br\/en\/wp-json\/wp\/v2\/coauthors?post=254146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}