BRICS nations eye $2.74T gain from tech financing shift

BRICS countries could achieve an annual economic benefit of $2.74 trillion by implementing a new technology financing architecture, according to a report by the Central University supported by the Russian Finance Ministry, which was presented at a seminar of the Board of Governors of the New Development Bank (NDB).

The study, titled “Knowledge is Power Again: How BRICS Countries Can Build Future Technology Financing,” argues that the current financing model is unbalanced, News.Az reports, citing TASS.

It suggests that while projects often receive support at the research stage, they later struggle due to a lack of capital during the commercialization phase, when scaling up or entering capital markets becomes necessary.

According to the report, ensuring technological sovereignty requires the creation of an end-to-end financing system that covers all stages of development. This is particularly important for Deep Tech projects, which are characterized by long development cycles, high capital intensity, and the need for sustained long-term funding.

The authors estimate that such a model could generate up to $2.74 trillion in additional revenue for BRICS countries, an amount equivalent to nearly 8.8% of the combined GDP of the participating nations.

In addition, the transition to this new model is expected to create an extra annual market for research and development (R&D) and venture funding valued at $406.5 billion. The authors note that at least 65% of this funding should be sourced from the private sector.

The Central University report also states that, under this new approach, fragmentation in technological chains would be reduced and the time required to bring complex innovations to market could be shortened from 7–9 years to 4–5 years.

News.Az 

By Nijat Babayev