Brazil Cost (Custo Brasil), this phenomenon is affecting the ability of Brazilian businesses to compete internationally and pursue innovation. Information technology Companies such as Motorola, Samsung, Nokia and IBM have established large R&D centres in Brazil, beginning with the IBM Research Center in the 1970s. One incentive has been the Informatics Law, which exempts from certain taxes up to 5% of the gross revenue of high technology manufacturing companies in the fields of telecommunications, computers, digital electronics, etc. The Informatics Law has attracted annually more than $1.5 billion of investment in Brazilian R&D. Multinational companies have also discovered that some products and technologies designed and developed by Brazilians have a nice competitivity and are appreciated by other countries, such as automobiles, aircraft, software, fiber optics, electric appliances, and so on. During the 1980s, Brazil pursued a policy of protectionism in computing. Companies and administrations were required to use Brazilian software and hardware, with imports subject to governmental authorization. This encouraged the growth of Brazilian companies but, in spite of their development of products like MSX clones and SOX Unix, the Brazilian consumers of computing were suffering from lesser offerings compared to foreign competitors. The government little by little authorized more and more imports until the barriers were removed. In 2002, Brazil staged the world's first 100% electronic election with over 90% of results in within 2 hours. The system is particularly suited to a country with relatively high illiteracy rates, since it flashes up a photograph of the candidate before a vote is confirmed. Citizens could download a desktop module that relayed the votes to their homes in realtime faster than the news networks could get them out. In 2005, President Luiz Inácio Lula da Silva launched a "people's computer" to foster digital inclusion, with government finance available and a fixed minimum configuration. Having rejected the Microsoft operating system (Windows XP Starter Edition), it is being shipped with a Brazilian-configured Linux system offering basic functions such as word processing and internet browsing. Plans to make cheap internet access available have not yet come to fruition. In 2008, the Brazilian Government under Lula da Silva, founded the CEITEC, the first and only semiconductor company in Latin America. Government research priorities The lion's share of government expenditure on R&D goes to universities, as in most countries. This level of spending increased slightly from 58% to 61% of total government funding of R&D