Limited innovation in Latin American andCaribbean (LAC) countries impairs the region'spotential to grow and improve its living standards. Eversince the seminal research of Solow (1957), economists haveknown that technological change, and not only factoraccumulation, is critical to growth. Yet, productivitygrowth in the region is lagging. The region does not investsufficiently in innovation nor does it always use scarceresources efficiently. With the exception of Brazil, themajority of countries in LAC invest less in research anddevelopment (R&D) than other countries with similarincome levels. Moreover, less than 50 percent of R&Dinvestments are financed by private industry, whichcontrasts with the experience of dynamic global innovatorssuch as China, Korea, and the United States. Public fundingof research in LAC has emphasized the generation ofconceptual knowledge but has been less efficient atenergizing technological innovation such as the productionof patents. Collaboration between industry and universitiesis limited, hindering the transformation of new knowledgeinto innovation. Universities and industry face differentincentives and cultures discouraging productive researchcollaboration. This brief includes the following heading:developing technology transfer offices to leverage researchfor public benefit; strategic R&D alliances betweenindustry and research centers; and strategic technologyextension mechanisms for low technology firms.
PDF
download
878987797
028-85220240
