The risk of giving a good example

There are worn out sentences that never produce a lasting effect. They need to be repeated, as a vaccine that must be administered periodically.

One of those sentences contains ancient wisdom: risk has costs.

We devise hedging techniques in order to prepare the defence against adverse scenarios, where risk is materialised.

We could easily replace risk with uncertainty, the concept will still be there. Uncertainty brings awareness of risk, uncertainty has costs.

Science institutions in Portugal know it, and they repeat it ad infinitum. Uncertainty is a factor of waste; its permanence a factor of foolishness. For that, they have always claimed a funding framework from the Government that is stable and brings no surprises, a framework that allows them to plan. Not always has this civic demand been understood, or heard.

It is not always clear that the relationship between uncertainty and deficit is more than empty rhetoric.

The good example now comes from the business side, one must stress. The EDP has recently signed a multi-annual R&D programme-contract with INESC TEC. It is certain that the relationship between the company and the science institution is old and solid. It is clear that the annual value of the programme-contract will not, in itself, constitute a value increase in the history of projects (as well as those that are planned) that INESC TEC develops annually for the group.

But understanding that, more than money, this is a profoundly symbolic public statement is key. The EDP is thus confident that its relationship with INESC TEC brings concrete value to the company (because it is not about patronage or outright grants). INESC TEC gains an added stability framework that will allow it to structure activities and to generate knowledge at a much higher level for the benefit of the economy.

Let us hope that this sign is read and understood. Let us hope that other Portuguese business groups become aware, because of this good example, of this important form of social responsibility: investing in knowledge – in stability, in the efficiency of our knowledge generating system.

Thank you, EDP. Thank you for the good example.