Innovation in Latin-America: indicators and surveys RICYT Red Iberoamericana de Indicadores de Ciencia y Tecnología Innovation Indicators for Latin America.

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Innovation in Latin-America: indicators and surveys RICYT Red Iberoamericana de Indicadores de Ciencia y Tecnología Innovation Indicators for Latin America Workshop 19 March, 2009 Paris, France Diana Suárez

2 Context  Unstable macroeconomic environment  M-L & L Tech goods  Low external insertion Innovative features  Low S&T expenditure  Low endowment of qualified personnel  High public expenditure participation  Low patent rate “Developing countries” ¿? The LA environment

3 Methodological Approach MacroeconomyTrajectoriesIncentives StrategyInnovation Innovative behaviours Innovation Activities Purpose Objectives Funding and information O b st a cl e s Results Impact _ _ _ _ _ Innovation System Institutional framework_ _ _ _ _ O b st a cl e s

4 Innovation in Latin-American firms What can we test?  Results of Innovation activities  Expenditure on Innovation activities  R&D human resources  Links, cooperation and sources of information  Obstacles

5 How can we test? CountryPeriodSample Statistical Unit Argentina (ISIC rev.3 D) Manufacturer firms with more than 10 employees Brazil (mining and manufacturer industries) Firms with more than 10 employees Chile (ISIC rev.3 A-O) Establishments with more than 10 employees Colombia Manufacturer Establishments México (census) Establishments with more than 50 employees Uruguay Manufacturer firms with more than 5 employees

6  High product innovator rate but low rate of firms that applied for patents,  Developing countries: more process than product innovators. 1. Results

7 2. Expenditure  Low innovation expenditure with high deviations  Concentrated on capital goods (then innovators)

8 3.Human resources in R&D  Even the firms with R&D expenditure and personnel present low rates of efforts.  R&D expenditure and human resources are not enough to understand innovative activities.

9 4. Innovative strategies In-house R&D Capital GoodsTrainingEIDIA Germany2,461,22--5,1 Argentine0,20,640,010,081,12 Brazil0,581,340,050,372,8 Spain0,620,46--1,5 France2,460,35--3,6 Uruguay0,34,30,10,56,2  Capital goods and R&D are the most important activities in terms of expenditure,  But training and engineering and industrial design are also important in terms of impact of the capital good acquisition.

10 Agents ArUrBrChMeCoSpGeFr S&T institutions Universities Training institutions Technological centres Consultants Commercial chain Related enterprises Headquarters1543 Clients Suppliers Competitors Links and cooperation

11 6. Obstacles ARURCHBRMESPGEFR Lack of qualified personnel Risk of innovation Cost of innovation / return period Financing problems Market structure Cooperation problems whit S&T institutions Insufficient information about markets Insufficient information about technologies

12 Innovative features  Low, concentrated and heterogeneous innovation expenditure  High rate of innovators but low scope of innovations  Low cooperation rates and contradictory numbers  Macroeconomic obstacles (uncertainty and funding) Summary and conclusions Implications  Importance of the subject approach and the integrated analysis (IA expenditure vs. R&D)  Simple indicators are not enough (efforts, results, scope and impact)  Deeper analysis of cooperation and links with the NIS  Endogenous vs. exogenous obstacles