Endeavor

In 2012, FINEP invested approximately R$ 200 million in innovation in Salvador. About 10% of that, R$ 10 mil- lion, was allocated to TECNOVA and PAPPE Integração, sponsored by State of Bahia's Foundation for Research (FAPESB), both with the aim to encourage innovation development in micro and small companies. TECNOVA's aims to support the implementation of incubators and give support to educational institutions, from high schools to post-graduate programs, who wish to add to their curriculum courses in the area of entrepreneurship and innovation. PAPPE Integration, on the other hand, in its 10th program initiative, offers nonrefundable invest- ments for innovation in SMEs and approved, in this last year alone, support for 16 companies (out of 59 propos- als), totaling more than R$ 6 million invested, up to R$ 400,000 each. Other examples of investments are those made direct- ly by the State Government, through the FAPESB. A case study for this is the "Support for Open Innovation", with resources of up to R$ 5 million, offered to local companies (of any size) establishing partnerships with companies from other states and from abroad for the exchange of technology with innovations applied in specific areas such as nanotechnology and biofuels. There is also the initiative to establish cooperation between businesses and ICT's, in which private com- panies can compete for resources (up to R$ 800,000) to develop joint projects with universities and state research centers. tHE CItY's BEst praCtICE CasE Other factors that deserve atten- tion, especially for entrepreneurs who work only locally, are the char- acteristics of Salvador's market. The capital, which was once the economic center of the northeast, is losing front compared to the others: between 2008 and 2011, Salvador grew on average 2.1%, while Recife and Fortaleza grew 6.0% and 5.6%, respectively — the GDP of Fortaleza, even exceeded that of Salvador in 2009. For now, the population of Salvador still holds the highest per capita income be - tween the northern and northeast- ern capitals. But, proportionally, the government is already the one that least invests in purchases (B2Gov), and the service sector has followed the below average developments of the economy. Salvador Northeast Best score for each pillar 5 4 6 7 8 9 81 The state of Bahia invested over R$ 600 million in 2012, the fourth highest proportional rate Value Position Regulatory Enviornment 5.11 12 th Infrastructure 5.16 11 th Market Conditions 4.91 13 th Access to Capital 5.20 12 th Innovation 5.78 9 th Human Capital 4.79 13 th Culture 6.06 6 th Regulatory Environment Culture Infrastructure Access to Capital Innovation Human Capital Market Conditions

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