Use of Policies for Innovation in Brazilian Enterprises of São Paulo State

The use of some public policies for innovation is recent in Brazil, for example, the automatic tax incentives and the direct subvention program to enterprises went into effect in 2006. This study obtained quantitative information on the implementation of tax incentives and economic subvention and qualitative information on the use of these tools based on surveys conducted at enterprises from São Paulo State. The data demonstrated that the lack of monitoring after approval and release of funds is a disheartening factor for the use of resources, while bureaucracy for project requirements, technical language, managerial inexperience, and contrast required are the main factors hindering access to the public policies.