The Rise of 'Em Terra de Gigantes': IPEA's Latest Insights into Brazil's Tech Landscape

In a newly released study titled Em terra de gigantes, researchers from the IPEA's Center for Research in Science, Technology, and Society (CTS-IPEA) delve into the formidable challenges faced by Brazilian digital platforms amid domination by global behemoths. Authored by Tulio Chiarini of CTS-IPEA and Marcus Vinicius da Nova Filho, a master's graduate in Industrial and Technology Economics from the Federal University of Rio de Janeiro (UFRJ), the paper—published in January 2026 in the Journal of Digital Media & Policy—spotlights the subscription video-on-demand (SVOD) sector as a microcosm of broader struggles in Brazilian science and technology (S&T).

The study argues that while platforms like Netflix, Disney+, Amazon Prime Video, and Hulu control the market, local initiatives emerge to address cultural and economic needs. However, structural barriers often doom them, as exemplified by the short-lived Filme Filme platform. Launched to rival the UK-based MUBI through curation, audience engagement, NFTs, and gamification, Filme Filme shuttered in 2023 after just four years, underscoring the 'land of giants' reality for Brazilian innovators.

Case Study: Filme Filme's Battle Against Global Streaming Titans

Filme Filme's story is a poignant case of ambition meeting insurmountable odds. Targeting cinephiles with artisanal curation and interactive features, it aimed to carve a niche in Brazil's burgeoning SVOD market. Yet, the platform's failure highlights how global giants leverage scale, content libraries, and algorithms to crowd out competitors. In Brazil, where streaming penetration has surged—reaching over 50% of households by 2025—local players struggle with content acquisition costs and user acquisition amid fierce pricing wars.

This mirrors wider S&T dynamics, where multinational corporations dominate R&D investment. According to IBGE's PINTEC surveys, large firms (100+ employees) account for the bulk of innovation activities, with 70.5% innovating in 2021 and 64.6% in 2023, often partnering with or relying on foreign tech stacks. For universities like UFRJ, which trained co-author Nova Filho, such cases emphasize the need for curricula blending tech innovation with policy savvy—skills vital for aspiring researchers and tech leaders.

Brazil's Streaming Market: Stats and the Giant Squeeze

Brazil's SVOD sector exemplifies market concentration. Global players hold over 90% share, per industry reports, leaving crumbs for locals. Netflix alone boasts 20+ million subscribers, dwarfing domestic efforts. The IPEA study notes this asymmetry stifles local content production, tech development, and job creation in digital media—a key S&T frontier.

• SVOD revenue in Brazil: Projected R$15 billion by 2026, 85% from globals.
• Local platforms: Less than 5% market share, high churn rates.
• Investment gap: Giants spend billions on local content, but retain IP and data.

This concentration extends to broader tech: Big Techs like AWS, Azure, and Google Cloud capture billions in Brazilian cloud spend, including from public unis and research institutes. A USP-UnB study estimates R$10 billion annual govt outlay on US proprietary tech in 2025, hindering sovereign innovation.

Large Firms Dominate Brazil's R&D Landscape

Across S&T, concentration is stark. PINTEC 2023 data shows 53.1% of innovating industrials invest in internal P&D, up from 50.6% in 2022—but skewed to giants. Large enterprises drive 80-90% of total P&D spend (Finep/IPEA estimates), with SMEs lagging due to funding barriers.

Brazil's GERD (Gross Domestic Expenditure on R&D) at ~1.2% GDP lags OECD, with private sector—dominated by multinationals—footing 60%. Unis contribute 40% via public funding (CNPq/CAPES), but face Big Tech dependency for compute.

Big Techs' Foothold: Cloud and AI Dependency in Brazilian Higher Ed

Universities amplify the issue. Many Brazilian institutions rely on AWS, Azure, Google Cloud for research—USP, Unicamp, UFRJ among them. A 2025 USP-UnB report flags R$10bi+ annual dependency, risking data sovereignty and inflating costs. Google opened a SP research center; Microsoft partners with Fapesp; Amazon funds AI hubs—but profits flow outward.

• 80% public unis use foreign cloud (2025 est.).
• AI research: 70% Brazilian papers use Big Tech tools/datasets.
• Impacts: Locked-in ecosystems stifle local startups; talent drain to globals.

For faculty and postdocs eyeing postdoc roles in tech policy, this underscores hybrid skills demand.

Universities' Pivotal Role: Bridging Local Innovation Gaps

Brazilian universities are S&T linchpins, producing 80% public R&D. Yet, Big Tech partnerships—while funding labs—risk over-reliance. UFRJ's involvement in the IPEA study exemplifies academia's policy role. Initiatives like Finep's startup funds and CNPq grants aim to bolster PMEs, but concentration persists.

Case: Unicamp's tech transfer spun 100+ startups; USP's AI center collaborates with Microsoft—but calls grow for sovereign alternatives. Experts urge unis to lead open-source clouds, echoing IPEA's digital sovereignty push.

Challenges and Risks: Sovereignty, Talent, and Economic Drain

Giants' dominance yields:

• Sovereignty threats: Data abroad hampers privacy (LGPD compliance issues).
• Talent migration: Top grads join Google SP over local firms.
• Innovation stifle: PMEs can't compete; R&D concentrates in few hands.
• Economic leak: Billions outflow vs reinvestment.

Streaming parallels: Local content erodes without platforms. Unis must adapt curricula for research assistant jobs in sovereign tech.

Policy Pathways: Fostering a Balanced S&T Ecosystem

IPEA recommends policies for cultural diversity/digital sovereignty: subsidies for local platforms, antitrust on globals, tax incentives for domestic R&D. Broader: Expand Lei do Bem (R&D tax credit), sovereign cloud (Eletronic Brasil), uni-Big Tech hybrids with data localization.

Finep's R$460mi Plataforma Inovação aids mediums; MCTI's IA Plano eyes national compute. Unis like UFRJ can pioneer via incubators.

Future Outlook: Can Brazil Tame the Giants?

With SVOD as bellwether, Brazil's S&T teeters. PINTEC trends show innovation dip, but mediums rise (27% Finep demand hike 2023-25). Unis hold key: training entrepreneurs, lobbying policy. Optimism lies in youth bulge, growing GERD.

For careers, explore Brazilian university jobs in tech policy/S&T.

Photo by Samuel Costa Melo on Unsplash

Implications for Higher Ed Professionals and Job Seekers

This landscape shapes academia: demand surges for S&T policy experts, digital economists. Platforms like Rate My Professor highlight courses in innovation policy. Job hunters, check higher ed jobs, career advice, university jobs. IPEA study signals opportunities in sovereign tech research.