I traveled to Brazil and Argentina last month.  One thing I look for when I travel internationally are models that can be expanded elsewhere. It's the “honeybee effect” of pollinating ideas around the world. The State of São Paulo Research Foundation (FAPESP) is one of these ideas.

FAPESP is the research foundation of the State government of São Paulo. It was created in 1962 and its purpose is to support scientific and technological research in the State. Its similar to the US National Science Foundation except its regional not national. When it created FAPESP, the São Paulo government’s aim was to “endow the State of São Paulo with an agency for supporting research that would be independent, efficient and agile in its decision-making”.  I don't know if they've documented the financial impact of FAPESP, but I suspect its existence is one reason why the São Paulo region has become so economically vibrant.

What impressed me is the foresight that the politicians had in creating and funding the organization. As I understand it, FAPESP receives a fixed percentage of the State budget every year for R&D. They invest based on peer-reviewed scientific merit rather than political influence. They even have an endowment to keep funding constant during economic downturns. Finally, they have a low overhead operation that results in a high percentage of dollars going to research rather than administration.

These four characteristics - fixed funding percentage, endowment, scientific merit and low overhead - should be key design points for similar endeavors. Research drives innovation, innovation drives economic vitality. Every government would be wise to create a FAPESP in their community -- letting ideas and research grow naturally and giving the government the opportunity to harvest the rewards.