The Imperative of Innovation: Creating Prosperity in Latin America and the Caribbean: 2nd Edition (original) (raw)
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The Case of Latin America and the Caribbean
fondad.org
The challenge of catching-up requires not only keeping pace with the front runners, but actually out-pacing them. The Inter-American Development Bank (IDB) has identified a particular area of weakness in Latin American and Caribbean (LAC) economies; namely-the low productivity levels in the service sector. LAC employment is overwhelmingly concentrated in services, and the sector's productivity levels have been identified as dragging the region's relative aggregate productivity levels downward. The service sector is adding more value to economies in developed regions than in the LAC region. Recent research conducted by the IDB shows that innovation positively affects productivity growth in the region, although the evidence comes almost exclusively from the manufacturing sector. The dearth of evidence regarding innovation in services is related, at least in part, to uncertainty with respect to how innovation in services actually works, how it can best be measured and whether or not old measurement tools (biased toward manufacturing and R&D) are really applicable to innovation in service sector environments. Traditional views of services have tended to view it as a sector that is not very prone to innovation, a view that has kept policymakers from considering it a strategic sector in their quest to achieve sustainable growing economies. This viewpoint is becoming outmoded. In fact, services are increasingly recognized as the sector with the greatest potential to affect economic growth; in developed economies the sector is being regarded as a leading job provider and creator, and as one that is capable of spurring economic growth by acting as a chief diffusion agent of general purpose technologies. If policies to promote innovation are to be effective, they need to reflect the ways in which innovation takes place today. Unfortunately, the little available empirical evidence about innovation in the service sector is largely limited to developed economies or regions; there is no systematic study of innovation in services in LAC. Recent evidence for developed economies highlights that innovation has became much broader in scope, stemming from a variety of practices and ones that are fundamentally more collaborative in nature. As such, innovation can be found in a variety of sectors (including government) and in a range of activities (such as those considered low-tech, according to the level of R&D) which have only recently started receiving attention to and we are just now beginning to understand. So far, the limited empirical evidence available suggests that LAC service firms do in fact innovate, sometimes even more than their manufacturing peers; however, they often face burdensome financial constraints when they want to innovate, and these constraints can sometimes be more binding in the service sector than in manufacturing. A deeper understanding of the dynamics at play in the service sector in LAC and the relationship between productivity and innovation in services (as well as specific sub-sectors of services) represents a policy making opportunity that, if ignored, could contribute to prolonged productivity lags in the region, while, if well designed and implemented, could have large economic payoffs. Policymakers in LAC are faced with the challenge of striking a balance between learning from the most advanced economies and understanding their own contexts which may compromise direct application
In view of the current global context, which challenges are facing science- and technology-based developments and cooperation in a way to contribute for policies that stimulate localized learning, innovation and endogenous development in Latin America? This broad question has motivated the work behind the Special Issue introduced by this paper, which considers the development of case studies in selected Latin America regions. The analysis lead us to argue that value-based networks have the potential to make both public policies and markets more effective, promoting learning trajectories for the inclusive development of regions. But they require effective public investments to keep attracting and qualifying human resources, together with long-term developments towards technical industries and export capacity for emerging markets worldwide. Our analysis argues about the unique potential for further developing Latin America through strategic international, knowledge-based ventures, exploring the emerging role the internationalization of universities and scientific institutions may play at a global level. Above all, they require the systematic observation of science and technical change in international comparison, as well as a relational infrastructure for collective action, at an international level, in a context much influenced by a dynamic of change and a necessary balance between the creation and diffusion of knowledge towards the endogenous development of all parts involved. The role of Latin America Universities and science policies based on international cooperation are considered to be particularly important in this process.
Research on Innovation and Innovation Policy in Latin America: Perception and Practice of the Nexus
On the nature of the policy-making process The many stages following STI policy design to reach decision-taking are outside the reach of researchers. Beyond theory, when it comes to define policy we are all actors with our own interests, inertias, tramps, etc. Ideological, strategic, tactical, circumstantial and personal factors interplay in policy-making and priority setting. PM want fast and simple evidence, and ambitious STI plans to leave their imprint. Little interest in learning from previous strategies and instruments. Agenda problems: a change of government or unforeseen events may suddenly affect STI priority in the policy agenda. Research findings do not easily permeate when adverse to preconceived ideas, subjacent to some PM actions. On governability and governance The 'principal and agent' relation affect STI policy and the crucial articulation between public policies and instruments. Lack of consultation tradition of PM, and of citizens' participation in STI public issues. Low empowerment of STI ministry. PM demands are discretional; they are often addressed to privileged groups. Dialogue and meetings taking place between different actors are inefficient in terms of knowledge exchange. Difficulty of collectively building an articulated policy, encompassing other social actors than PM and researchers. Lack of articulation of macro, sectorial and STI policies. Ensuing inconsistency of instruments. Institutional restrictions. Lack of a specialised bureaucracy in STI, trained to taking into account research findings as inputs for policy design. Public agencies do not exchange information on the findings of the projects they finance, to improve policy design. Public policy decisions are frequently taken without information and knowledge. Limited and/or discretional diffusion of primary data obtained by public entities (surveys). Lack of development strategies whose long-term objectives require a focus on STI (e.g., structural change). External influences Latin American mimetic: solutions adopted in the North are replicated as if problems were identical in the South. International research networks influence the setting of local research agendas. Neo-liberal times left behind a remnant of supply based policy. Source: Based on 39 interviews to members of SSH research groups on innovation in Latin America, 2009-2010.
Introduction: innovation in Latin America
Academia Revista Latinoamericana de Administración, 2013
Niels Ketelhöhn , Enrique Ogliastri , (2013) "Introduction: innovation in Latin America", Academia Revista Latinoamericana de Administración, Vol. 26 Iss: 1, pp.12 – 32 (Reprinted 2017, in Emerald, Research Impact: 50 years. 50 articles) Free download: http://www.emeraldinsight.com/doi/full/10.1108/ARLA-05-2013-0037 The purpose of this article is to summarize the basic literature and concepts of innovation and entrepreneurship, emphasizing the relevant studies for Latin America. The authors aim to assess the role of Latin America in the world innovative activity utilizing the production of USPTO patents. Design/methodology/approac To achieve the first objective, the authors review and summarize the relevant literature for innovation and entrepreneurship in Latin America. They also introduce each of the papers included in the current special issue of Academia. To achieve the second objective, the authors use the production of USPTO patents by Latin American residents, and examine those levels to the rest of the world. Findings The authors find Latin America to be a marginal contributor to the world innovative activity. Although the region represented 8.7 per cent of world GDP in 2011, it only generated 0.19 per cent of the world patents registered at the USPTO between 2008 and 2012, and only 0.17 per cent of all patents registered since 1976. However, countries such as Costa Rica and Uruguay have larger levels of patent production by 100,000 inhabitants with 7.05 and 4.72 for 1976-2012. Originality/value This introduction introduces work that continues the intense discussion on innovation and entrepreneurship in Latin America. It is to the extent of the authors' knowledge, one of the first attempts to measure the level of innovation at the regional level, and compare the performance of different countries. This special edition has implications for individuals, firms and governments striving to introduce new products, services and processes in a region that has historically confronted important barriers to innovation. Abstract: Resumen En esta introducción presentamos algunos conceptos básicos sobre innovación y empresariado, y hacemos énfasis en la literatura que ha estudiado estos fenómenos en América Latina. Evaluamos, además, el papel de América Latina en la actividad innovadora mundial, utilizando la producción de patentes registradas en la Oficina de Patentes y Marcas de Estados Unidos (USPTO), y encontramos que América Latina desempeña un papel marginal con relación a otros centros mundiales de innovación. Finalmente, se presentan los artículos de este número de la revista Academia. Esta edición especial tiene implicaciones prácticas para individuos, empresas y gobiernos, que quieran introducir nuevos productos, servicios, y procesos desde una región que históricamente ha tenido que enfrentar barreras a la innovación. Keywords: Innovation, Latin America, Patent production, New products, Creativity, Productivity increase, Patents, Innovation, América Latina, Patentes, nuevos productos, creatividad, incremento productividad