Startups emerge at all times in the entrepreneurship ecosystem bringing new technologies or adopting innovative business models that transform the way we relate. In government, the innovation process strides in the same direction. Public Power has been following the digital transformation and innovating the way to administrate.
GovTechs are startups with the purpose of generating innovation for public management and aiding the saving of public resources through technological solutions.
The transformation possibilities that the technologies developed in the private sector may promote if adopted by governments are countless. Technology has been contributing to improve processes, products, and services. All this besides streamlining the internal management of Government bodies, reducing timelines, eliminating bureaucracies, bringing efficiency and transparency in the use of public resources. Through open innovation practices, the government supports and contracts products and services created by companies and escalates the solution, reaching a great number of people. GovTechs are an alternative for the government to improve the performance of the administration and provide more quality of life to the citizens.
The Legal Framework for Startups and Innovative Entrepreneurship presented by the Brazilian Ministry of Science, Technology, Innovation, and Communications (MCTIC) and the Ministry of Economy has been being created by many hands, with different actors of the ecosystem – public and private institutions, entities that represent startups and accelerators, and the civil society. These groups discussed the current scenario, the legislation, the bottlenecks, the current support mechanisms, and launched questions for public consultation in 2019, not yet sanctioned. The Framework emerged to discuss how to improve the business environment, facilitate investment in startups, besides handling aspects connected to labor relations and public procurement. This last point demonstrates the Government’s interest in relating to innovative companies, with one of the objectives being the search for solutions to the public procurement bidding process, i.e., using the State’s procurement power to encourage companies.
The Federal Government evaluates that the measure will bring improvements to the provision of public services and cost reduction. Moreover, various banks and fostering agents have resources allocated to foster this ecosystem and invest in businesses that help the public sector to become more agile and internally efficient and guarantee an improvement in people’s quality of life. Hence, the GovTech sector is quite promising.