Innovation should be viewed as a public good

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By analyzing decades of data on productivity, patents, and investments in R&D in OECD countries, Aghion and his colleagues demonstrated that the engine of progress lies in the competition for innovation – not in state protectionist policies or the selection of “national champions.” The role of the state, they say, is to create the environment that makes innovation possible: where risks are viable, merit is recognised, and learning is constant.

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This is the essence of what Aghion calls the investment state – a state that does not direct the economy, but rather strengthens its foundations: qualified labor training, technological infrastructure, health incentives, and predictable regulatory frameworks. Therefore, the investment is not only limited to products, but also to capabilities. It is the model of countries like Israel and Japan, which have invested in decentralized innovation by combining public investment in education and science with open and competitive markets.

The message from Sweden is particularly timely for Brazil, which today discusses its digital future in the House of Representatives’ Artificial Intelligence Committee, which I chair. There are those who see AI regulation as an ideological battleground; Others, like a territory without rules. Aghion offers us a middle path: a state that invests to unleash creative potential – not to control it.

Innovation requires solid infrastructure: broadband connectivity, affordable power, access to data and modern equipment. Attracting data centers is important, but it is useless if the environment does not provide stability and trust. Physical infrastructure must go hand in hand with institutional infrastructure. Here comes the role of legal security. Innovation is an act of trust – contracts will be honored, rules will not suddenly change, and competition will be protected from privilege. Without predictability and equality, the effort to innovate becomes an unacceptable risk.

In the end, it all depends on the people. Aghion shows that there is no progress without training, attracting and retaining minds. Brazil needs more engineers, scientists, and programmers, and opportunities for them to apply their talents here. It is necessary to link education to the market, evaluate research, and facilitate professional mobility. How can the foundations of innovation be built by investing less than 2% of GDP in research and development? When the number of doctors in technology is four times less than in Finland? No innovation policy can thrive without people ready to innovate.

In this challenge, I was supported by Representative Aguinaldo Ribeiro, Rapporteur of Law PL 2,338/2023, which deals with the regulation of artificial intelligence. We share the conviction that a good legal framework must protect without paralyzing, and encourage without distorting. We are in a race toward innovation, not regulation – and it is better to be right than too early.

Innovation must be viewed as a public good. The best industrial policy is one that invests in an enabling environment for creativity to flourish. Passing a good law is more important than passing any law. The law of good AI is not the fastest, but the law that lasts and builds a competitive, predictable and humane environment.