INNOVATION AND PUBLIC POLICY: A REGIONAL ANALYSIS OF THE LEI DO BEM IN NORTHEASTERN BRAZIL (2019–2023)

Abstract

This study aims to analyze the distribution of tax incentives for innovation granted under the Lei do Bem (Law No. 11,196/2005) in Northeastern Brazil between 2019 and 2023. Although it represents the country’s main policy instrument to foster Research, Development, and Innovation (R&D&I), a pronounced imbalance is observed in the regional allocation of its benefits, with the Northeast receiving only 4.1% of the national total, which exceeded R$ 31 billion during the period. The methodology consisted of a descriptive quantitative analysis based on data from MCTI and IBGE. The findings show that 312 companies, distributed across 84 municipalities in the Northeast, developed 2,894 projects. The spatial distribution of these companies revealed a marked concentration, with 78% of the beneficiary firms located in the states of Bahia, Ceará, and Pernambuco. Furthermore, approximately 50% of all supported companies in the region are headquartered in state capitals. From a sectoral perspective, the manufacturing industry registered the highest number of benefited firms, followed by Information and Communication. Thus, the regional analysis highlights the alignment of the policy with traditional regional and economic structures, favoring the most dynamic hubs of the region. Nevertheless, the presence of R&D&I in 24% of municipalities with fewer than 50,000 inhabitants and the potential demonstrated by the technology sector suggest the emergence of new territorial dynamics in the Northeast.