Porto Digital

View of Porto Digital in 2012

Porto Digital was created in Recife in July 2000[1] as a result of a joint effort of the Pernambuco state government, private sector and the Inter-American Development Bank(IDB). Most of the funding for the creation of the Porto Digital Science Park came from the privatization of CELPE,[2] the state's electricity company. The companies and incubators that form the Science Park are mostly housed in buildings on the island that is known as Old Recife. The city is the ninth largest in the country.[3]

Porto Digital hosts C.E.S.A.R., the most innovative R&D institute of Brazil, according to a Federal Government assessment in 2004. The Science Park was evaluated as the largest of Brazil in 2005 by AT Kearney and won in 2007, 2011 and 2015 the prize of the best Brazilian Science Park, given by the Brazilian Association of Science Parks and Business Incubators (ANPROTEC). It was described in 2013 as a coordinated effort between the federal and state governments, becoming an economic keystone in Pernambuco state since its start in 2000.[4]

Porto Digital is a member of the International Association of Science Parks and Areas of Innovation (IASP), an NGO in special consultative status with the UN, and hosted the association's 30th World Conference "IASP Recife" in 2013. [5]

The local and federal government do not directly pool resources in order to invest in the park, they offer however a certain amount of fiscal incentives to its companies. The biggest ones are a discount of up to 60 per cent on the ISS, a sort of municipal services tax and the "Lei de Informática" (Leis 8.248/91, 10.176/01 e 11.077/04) which concedes reduction of the IPI taxes for companies which develop hardware and automation solutions. In a country with one of the world's most onerous tax systems, fiscal incentives are a game changing and decisive factor for the success of a tech hub in the region. The incentives are not only tax reductions but also labor incentives: by reducing bureaucracy and costs involved in the process of hiring new workforce.

Business incubator and innovation center Recife Center for Advanced Studies and Systems (C.E.S.A.R) is the largest business of Porto Digital and works as a flagship company of the technological park. One of the reasons for the success of Porto Digital is the high-skilled workforce delivered by the Center of Informatics (CIn) of the Federal University of Pernambuco, (UFPE). Sergio Cavalcante, CEO of C.E.S.A.R is also a professor at CIn, which shows a healthy and close relationship between industry and academy. An entrepreneurial spirit is also cultivated in the university through an “Entrepreneurship Project” Course “Projetao”, which helps students develop innovative ideas and turn them into products. Many of the products developed on this course grew to be real products sold by real startups. One success story is that of In Loco Media (previously UBee) which developed an accurate indoors location app. The company offers a mobile Ad-network powered by its indoor location technology and boasts to be the largest Brazilian mobile advertising company. Porto Digital is a research development center for international clients like Fiat Chrysler Automobiles.[6]

The strategy of Porto Digital includes 10 year plans. Its vision and main objective is to be the best environment in the country for disruptive innovation and entrepreneurship on IT related areas and also on creative industries. Porto Digital intends to be a vital asset for the economical development of the state of Pernambuco and to be an anchor for the sustainable development of the region. The first strategic goal is to have, by 2020, 20,000 professionals employed and the aggregated value of 400 innovative enterprises. To achieve these goals, Porto Digital develops 40 articulated projects on 6 strategic areas:

1. Increase the capacity of Porto Digital to attract new investments and to strengthen the competitiveness of the businesses installed on the technological park;

2. Integration of the Porto Digital with other sectors of the economy which lack appropriate technological support;

3. National expansion and internationalization of Porto Digital;

4. Strengthening of the image and brand of the technological park;

5. Actions to promote social, economic and environmental sustainability;

6. Strengthening of the technical and managerial capabilities of the Porto Digital.

In 2014, Porto Digital included 500 entrepreneurs and 240 institutions, with another 150 related companies located in Recife but not in the Porto Digital zone.[7]

The private organization responsible for running Porto Digital is a non-profit organization called the Porto Digital Management Unit (NGPD) and was entrusted by the government to be a flexible option to govern the technological park. NGPD not only runs Porto Digital but also tries to forge ties with other institutions which also promote social and economic development in the region.

Its management structure is based on an Administrative Council, with 18 members. These members represent the firms installed in the park, other companies with ties to the Porto Digital, the state government, UFPE university and Recife City Hall. It is the Council's responsibility to decide policies and strategies which enable and promote Porto Digital's development.

The Council has the freedom to appoint a board of directors of the NGPD comprising a president, a director of innovation and business competition and an executive officer. The NGPD's permanent technical staff members all have degrees in fields related to innovation, information technology, project management, urban planning, etc.