Journal of Economics and Development Studies

Innovation, Urban Attributes and Scientific Structure: A Zero-Inflated-Poisson Model for Biotechnology in Brazil
Rodrigo Simões, Agda Martins, Sueli Moro

Abstract
The paper assesses the extent to which the environment is associated with the incidence of innovation. Patents filed are used as proxy for innovation and Brazilian municipalities are the spatial unit. Two dimensions related to the location are taken into account: the presence of science and technology infrastructure and urban attributes, identified here as economic scale, industrial scale, modernity and urban hierarchy. The object of analysis is the biotechnology sector, a segment of high technological complexity, which is expected to be more sensitive to the environmental variables. Results show the importance of the public sector on the technological output as the findings indicate the importance of investing in urban structure, especially in regions with a lower level of economic development. Factors such as specialized services sector, degree of centrality and industrialization level are critical for the upgrade of non-innovating municipalities to the innovation generating group. This means that incentive policies regarding science and technology can be more successful if they encompass investments in qualification and modernization of the cities and their urban infrastructures.

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