Reasons to Invest in SP
The largest and most diversified industrial park of the country, São Paulo was responsible for nearly 33% of the national GDP (US$ 548 billion) in 2008, contributing more than 30% and 40% of the national revenues of the commerce and services sectors, respectively. The State is also the biggest Brazilian consumer market, with approximately 42 million people. Thanks to its economic vigor, the State of São Paulo has influence over a vast territory with high level of economic development, especially the bordering States. One of its main differentials is the quality of its logistics and transportation infrastructure, which shelters the most modern Brazilian highways, the main international airports of the country, besides the largest containers terminal of Latin America, responsible for 25% of the Brazilian chain of commerce. This network of transports is complemented by a waterway, railroads and network of ducts. In the segment of financial services, headquarters and branches of the most important banking institutions of the country and the world are located in São Paulo city, as well as BM&F BOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros (Brazilian Mercantile & Future Exchange), the third largest exchange in the world in terms of market capitalization, the second of the Americas and the leader in the Latin-American continent. The qualification of the labor market of São Paulo is also significant: in 2009, nearly 56% of the employed population had at least 11 years of education (complete secondary education), in contrast to the national average of 43%. The State is the home of important professional education institutions, of which the Centro Paula Souza (Paula Souza Center) stands out, besides concentrating nearly 24% of the total institutions of higher education of Brazil, many of which are among the best ones of the country, even with international recognition. The system of science, technology and innovation of São Paulo also stands out nationally and internationally.
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The State has a network of public and private research institutions with expressive production of knowledge, a program of implementation of technological parks as an instrument of attraction and support to innovative companies, besides one of the main agencies of promotion to the scientific and technological research of the country, the Fundação de Amparo à Pesquisa do Estado de São Paulo - Fapesp (State of São Paulo Research Foundation), with outlays of US$ 345 million in 2009. Within the private sphere, the expenditures in innovation carried out in the State reached US$ 12 billion, nearly 50% of the total invested by the sector in Brazil. In the period from 2006 to 2008 the State of São Paulo accounted for 46% of the Brazilian industries that filed patent requests.
Strategic Location Geography
3% of the Brazilian territory - 248,209 square kilometers 42 million inhabitants 33% of the national GDP 41% of the cost of the Brazilian manufacturing 26% of the Brazilian exportations 42% of the petroleum refining capacity 27% of the natural gas consumption 58% of the alcohol production 99% of the aeronautics production 51% of the production of motor vehicles 73% of the production of the pharmaceutical industry 80% of the production of orange BM&F Bovespa S.A. – the third largest stock market in the world 30% of the national credit operations
The State of São Paulo is one of the most important centers of development of the south hemisphere. Its area of influence greatly exceeds its territorial limits, extending over the other States and several South-American countries. The Metropolitan Region of São Paulo, third largest urban agglomeration in the world, is the center of the industrial, commercial and services activities of the country. Such a privileged condition, allied to the weight of the economic activity of the interior of the State, constitutes a group of factors that make São Paulo an extremely favorable environment for all types of investments. The movement of goods in the State of São Paulo, as well as its integration to the other regions of the country and abroad, is made through Guarulhos and Viracopos airports, maritime and river ports, modern highways and railroad, pipeline and waterway systems that assure full conditions of accessibility and competitiveness to the São Paulo economy. The State of São Paulo has the two most important Brazilian airports in volume of passengers, with regular flights to several continents. Congonhas Airport operates one of the most significant air bridge services in the world, which connects São Paulo city to Rio de Janeiro.
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São Paulo also stands out for the vastness of its networks of distribution of energy and natural gas, perfectly integrated to other States and producing regions. The supply of electric energy is made by the plants installed in the territory of São Paulo, as well as by companies from other States, such as Itaipu, Furnas and Cemig. The gas pipelines that carry the gas from Bolivia and from the basins of Campos and Santos cross the State, connecting to the South of Brazil. Being the home of important corporate clients in the financial and commercial area, São Paulo presents considerable competitive advantages in the sector of services and telecommunications equipment, concentrating, for instance, 41% and 33% of the fixed and mobile broadband accesses of the country, respectively.
Diversified economy The State of São Paulo stands out for its significant participation in the national economy, being responsible for nearly 33% of the Brazilian Gross Domestic Product - GDP. Vigorous and diversified, the economy of the State of São Paulo has the largest industrial park of the country and a labor market which is characterized by the qualification of its labor force. The São Paulo industry is based on a solid technological foundation, generating products with high added value, with emphasis on the Information Technology - IT, Informatics, Aerospace, and Automotive segments. The State also gathers approximately 30% of the commercial establishments of the country, besides the greatest offer and demand of services, which characterize the State as the greatest center of the services industry of the Country. Agribusiness is also significant and shows high productivity rates.
Modern Infrastructure Main producer and consumer of Brazil, the State of São Paulo features a wide and complete infrastructure. In a country that depends mainly on the road transportation, the quality of the highways and the intermodality represent competitive advantages of São Paulo. Its infrastructure stimulates the exportations of São Paulo. The multimodal intersections allow integrating the transport through highways, railroads and waterway system until the ports of Santos and São Sebastião and the airports of Campinas and Guarulhos. Besides connecting São Paulo to four other Brazilian States, the Tietê-Paraná Waterway also takes products made in São Paulo to the neighboring nations, like Argentina, Paraguay, Uruguay and Bolivia. In 2010, the port of Santos had activities of more than 96 million tons of cargo. General cargo, solid bulk products and liquid bulk products accounted for respectively 37%, 47% and 16% of that amount. 3|Page
The port of São Sebastião had activities of 653 thousand tons of cargo in its public commercial pier in 2010, with prominence to solid bulk products, such as soda ash, sodium sulphate and barley (74% of the total cargo). Both for the domestic and the foreign market, the transportation infrastructure guarantees São Paulo indicators that make it into the biggest economic power of Brazil and one of the biggest economic powers of Latin America.
Skilled Labor Force The population of the State of São Paulo features higher levels of education than the country's: in 2009, nearly 56% of São Paulo State's employed population had 11 or more years of education, that is to say, had at least finished high school and 15% had 15 years or more of education, the time required to conclude a higher education course. In Brazil, those indexes were of 43% and 11%, respectively. With a great system of professional education and several institutions of higher education of recognized international quality, São Paulo presents excellent infrastructure aimed at qualification of its labor force. The State manages three of the most important universities of the country. Among them is USP, ranked the 53th best university of the world and the best in Latin America in 2010, according to the Webometrics Ranking of World Universities. Subject to the Secretaria de Desenvolvimento - SD (Secretariat of Development), the Centro Paula Souza (Paula Souza Center) manages the Escolas Técnicas - Etecs and the Faculdades de Tecnologia - Fatecs of the State. Those institutions leverage the productive inclinations of the different regions of the State, training human resources and attracting new investments.
Innovation, Science and Technology The State of São Paulo has one of the best Research and Development structures in Latin America, and has been attracting a growing number of companies due to the increasing importance of innovation as a decisive differential in the global market. Among the several factors that justify such attraction, it's worth highlighting the presence of several renowned universities that link higher education and internationally renowned laboratories and research centers that act in several areas of knowledge. The State's Research and Development sector was driven by significant investments of private companies (approximately US$ 3.1 billion in domestic R&D activities) and public funds (nearly US$ 2.3 billion) in 2008. A great part of such resources come from the Fundação de Amparo à Pesquisa do Estado de São Paulo - Fapesp (State of São Paulo Research Foundation), whose purpose is to promote the research, exchange and diffusion of the science and technology produced in São Paulo.
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Among the actions aimed at the promotion of innovation, science and technology in the State it is worth pointing out the São Paulo System of Technological Parks - SPTec, instituted by the Secretaria de Desenvolvimento - SD (Secretariat of Development), to promote and stimulate the economic and technologic development in several regions, by the attraction of investments and generation of new knowledge-intensive companies.
Quality of Life Education
15,027 establishments of basic education 5,923 establishments of secondary education 1,224 establishments of professional education at technical level 6,307 in-class undergraduate courses
Culture
260 movie theaters 160 theaters 110 museums more than 40 cultural centers
Leisure
A coastal area stretching over 386 miles (622 kilometers) waterfalls, caves, natural parks, historical buildings world-class restaurants and bars
The State of São Paulo shows one of the best national levels of the population's living conditions. In recent years, there has been a significant improvement in the indexes of longevity and education of the group of the municipalities of the State caused, respectively, by the reduction of the rates of mortality of children and also of adults and adolescents and by the increase of the coverage of children education and of the levels of conclusion of basic and secondary education. The state system of public and private health institutions is ample, including many nationally and internationally renowned reference centers. São Paulo also has first quality educational institutions from primary to higher education, contributing to the development of a labor market that stands out in the country due to the qualification of its labor force. Place of attraction of immigrants from the most different countries throughout its history, the State reveals those multiple influences on its rich cultural life, which offers plenty of leisure and entertainment opportunities, and a great variety of bars and restaurant, many of which of international standard.
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Environment Stretching over approximately 3% of the domestic territory and with some 22% of the Brazilian population, São Paulo is Brazil's most densely populated State. Its 645 municipalities compose a network of cities formed by three Metropolitan Regions, 11 Urban Clusters, and 13 Urban Centers. São Paulo has 27 state parks, 21 ecological stations, 16 experimental stations, 13 preserved forests, a natural reserve, three gardens and two forest nurseries. Concerned about the environmental preservation of these sites, the state public authorities have implemented mechanisms designed to improve and recover the quality of the environment. The preservation of the state's green areas is carried out by the Secretary of the Environment, through the Instituto Florestal (Forestry Institute), including partnerships with international institutions, among which, the United Nations Educational, Scientific and Cultural Organization - Unesco.
Actions of Incentive to the Economy The government of São Paulo is characterized by a developmental view. In this regard, it has made heavy investments in the urban and road transport infrastructure, in the improvement of the quality of education and in actions of support to private investments, micro and small entrepreneurs, in the increase of the credit offer and of the job generation. In tune with the worsening of the international crisis it has launched an important package of public investments and incentives to private investments with the purpose of keeping São Paulo in its growth trajectory. It is also necessary to mention the investments foreseen to qualify the municipality of São Paulo as one of the main host cities of the 2014 FIFA World Cup to be held in Brazil
Business Sectors Responsible for one third of the Gross Domestic Product of Brazil, the economy of São Paulo stands out in the national scenario for its diversification, modern technological and research base Another strong characteristic of the economy of São Paulo is its great participation in the service activities of Brazil, particularly concentrated in the municipality of São Paulo
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Most modern and cosmopolitan of the Brazilian states, biggest consumer market of the country with excellent infrastructure and qualified manpower, São Paulo is in constant process of opening of new opportunities of investments. Responsible for one third of the Gross Domestic Product of Brazil, the economy of São Paulo stands out in the national scenario for its diversification, modern technological and research base and for its highly trained labor force. São Paulo also concentrates 41% of the Brazilian industrial production, 8% of the agricultural earnings of the country and 44% of the income generated in the service sector of Brazil, standing out as the main national center of services. The industry of São Paulo is the most diversified of the country and it is supported by a strong technological base, generating high added value products, with emphasis on the sectors of aeronautics, automobiles, capital goods, pharmaceutical, among others. São Paulo is also characterized as a major center for the agribusiness, with expressive participation in the Brazilian trade balance - sugar, alcohol, meats and industrialized juices. Sugar-cane is the main activity that generates value in most regions and the State is responsible for nearly 63% of the production of sugar of the country. Another strong characteristic of the economy of São Paulo is its great participation in the service activities of Brazil, particularly concentrated in the municipality of São Paulo where there is a wide range of services related to production - advertising and marketing, consulting/audit, communication and information technology services, transport and distribution of products, among others. Financial services deserve to be pointed out. Most of the financial operations of Brasil are concentrated in São Paulo, an important financial center of Latin America, with more than 30% of the bank agencies, besides hosting most of the head offices of the financial institutions operating in the country. The municipality of São Paulo is also the home of the BM&F Bovespa, which is considered the third largest exchange in the world in terms of market capitalization. Furthermore, it is necessary to point out the participation of the State, but especially the participation of the municipality of São Paulo, in the segment of health services: the capital is considered the main hospital and medical center of South America, with countless hospitals of reference in several capacities. For all that, the São Paulo metropolis has become, throughout the last decades, a center of services, attracting large-sized companies of the most different areas of the sector of services.
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