A deep dive into Brazil's data economy: Report on challenges and opportunities

The data ecosystem continues to expand rapidly, with data being collected and exchanged by a network of companies, individuals, and institutions to generate economic value. In this context, it is essential to understand the dynamics of the data economy worldwide. As this sector continues to develop, the demand for robust regulations to support its sustainable growth and effective governance becomes increasingly critical.

From this perspective, the Centre for Organisational Engineering at the Federal University of Rio Grande do Sul (NEO-UFRGS) conducted this research, especially for the Brazilian Ministry of Development, Industry, Trade, and Services (MDIC), converging with other initiatives on data economic, such as “Open Industry Roadshow” or the “IDSA Workshop on Data Spaces”.

Insights from European regulations and the Brazilian industrial sector

The first report focused on analysing European regulations to identify key principles, actors, and rules that could inform the creation of a data economy framework in Brazil. The report provided a comprehensive examination of two European regulations: the Data Governance Act (DGA) and the Data Act. The analysis highlighted regulatory, commercial, structural, and privacy challenges, and the qualitative and quantitative impacts of these regulations on the EU's data economy.  Moreover, the report underscored the potential for similar outcomes in countries adopting or planning comparable regulatory frameworks, emphasising the importance of tailoring strategies to local contexts.

The second report builds upon the findings of the initial study, presenting insights provided by data specialists from the Brazilian industrial sector. Interviews were conducted with users of machinery, machinery suppliers, data-driven service providers, and trade associations, ensuring feedback from professionals with a broad, multi-company perspective rather than views limited to individual organisations. Based on these interviews, the report offers strategic recommendations to guide the development of an effective and balanced regulatory framework

The future of the Brazilian data economy

According to the study, a thoughtfully designed and robust Brazilian Data Act could foster innovation, encourage ethical and transparent business models, build trust in data sharing through clear rules, and reduce ambiguities surrounding data ownership. Furthermore, the regulation could prevent the monopolisation of information by manufacturers and generate positive economic impacts, as demonstrated by projections based on the European market. However, challenges such as high adaptation costs, oversight of data use, stakeholder responsibility, privacy protection, and infrastructure modernisation must be addressed.

Finally, the report offers a comprehensive view of the current landscape, highlighting essential elements for enabling data regulation in Brazil. By incorporating the perspectives of different stakeholders, it identifies both the potential benefits and the complexities of the regulatory process. Both reports aim to contribute to the creation of a safer, more transparent, and innovative data ecosystem, capable of enhancing the competitiveness of Brazil's industrial sector.

Both reports are written in Portuguese and is now available for download here: