According to the European Commission’s annual review of the Portuguese economy, Portugal has yet to deliver Internet penetration to a level equal to the rest of the EU. “We have received a lot of money from the EU and put that money to good use, mainly in the improvement of Portuguese infrastructure. Maybe we’ve put too much stress on public works at the expense of training and education,” explains Valento de Olivera, vice president of the Portuguese Business Association.

The government has since created a number of advanced training programs and scientific development agencies to boost human resources and Research and Development (R&D) in this area. The Minister of Science & Technology, Jose Mariano Gago sees the solution in the creation of closer ties between science and industry. “The expansion of R&D in industry in the last few years has been mostly in the service sector. We would like to extend it into other sectors, by using foreign investment to tie Portuguese R&D abilities to Portuguese business,” he says.
Mr. Olivera considers that companies also need to become more sophisticated. “We need to diversify from the traditional sectors of textiles, footwear, cork, wine, etc., and look to the emerging opportunities, for example in IT, New Materials and Bio-technology.” Mr. Olivares also maintains that there is still a need for more professional training. “Companies approach us because they want training in commerce or computers or tourism brochure design, for example,” he says.

The state has created a number of scientific development agencies

The success of home-grown companies such as Imediata is an example for others to follow. Imediata employs Portuguese graphic designers, hardware and communications engineers, programmers, project managers and marketing specialists. It is currently experiencing significant market popularity in the U.S. with the Portuguese-made Cybertotem kiosk.
Cybertotems are sleek and powerful interactive communications modules that offer business solutions in kiosk hardware. The hardware comes from Imediata’s CAD/CAM production line in Lisbon. The company also develops its own multimedia software, which functions remotely and is synchronized with central databases in real time. The new modules can even communicate over wireless technology and contact mobile phones within 100 yards.
“The number of things you can do with this system is really incredible,” says Jaime Silva, Imediata Group Administrator. “Using a Cybertotem, people can surf the Internet at the shopping mall, in the office waiting room, before boarding a flight, or in the hotel lobby.” Cybertotems have been an immediate success in the retailing, government, banking, real-estate, transportation and tourism sectors. “We are only just beginning but I think we have what it takes to become a major player,” says Mr. Silva.

The company is financed by AMORIM, a family-owned European business conglomerate that was looking for a way to aggressively develop hi-tech, innovative business solutions. Now Imediata has a growing U.S. base and turnover, is investing heavily in R&D and has plans to expand globally. “We are developing the organization in Europe, the U.S. and Brazil and to do that we need people who know the business.”
Imediata is proud of its innovative business concepts but this approach does not cut much ice with another Portuguese company also investing heavily in R&D. Benjamin Santos, president of Indasa, manufacturer of coated abrasives for the automotive refinishing industry, says, “Here at Indasa, we do not invent anything but we take what’s there and improve upon it.”

Indasa, S.A. was formed in 1979. Today, 80% of its production is exported to over 50 countries on 5 continents. R&D plays an important role in producing a range of technically advanced, high quality new materials. “A company must be abreast of the business, the product and the technology,” says Mr. Santos. “We are investing a lot in communications systems and new technologies. We have been automating and robotizing our production line. We also want to get into other sectors that use abrasives such as the wood, metal, stone glass and leather industries, so we are currently investing US$12 million in new facilities here in Portugal and hiring engineers and training younger people. The future looks bright.”