1. Institutions, infrastructure and capacity building to foster innovation for development José Luis Machinea Executive Secretary UN-ECLAC

2. Background  Markets are nested in complex institutional settings (institutions matter!)  The sources of innovation: a complex loop of market and non-market mechanisms (policies matter!)  Learning, adaptation and new technological paradigms: (domestic capabilities also matter!)  The mismatch between the long-term horizon of institution, infrastructure and capacity building and the short term and quickly shifting challenges of new technological paradigms

3. A systemic approach to foster knowledge diffusion and innovation CAPACITIES AND CAPABILITIES FOR INNOVATION AND KNOWLEDGE GENERATION, ASSIMILATION AND DIFFUSION INSTITUTIONS RELATED TO EDUCATION AND RESEARCH CAPABILITIES (Universities, R&D centres, etc.) PHYSICAL AND DIGITAL INFRASTRUCTURE (ICT, research labs, etc.) POLICY SUPPORTING FRAMEWORK (Public agencies and development banks supporting production development and S&T)

4. Stylized facts on innovation policy in LAC  Emerging political consensus on the importance of S&T and Innovation for development  Most countries already have a S&T plan (Argentina, Bolivia, Brazil, Chile, El Salvador, Mexico, Panama, Perú, etc.)  But innovation performance of countries of the region is scant

5. Beyond the R&D gap... evidence on institutional and infrastructure gaps Source: UNESCO 2006

6. Persistency in S&T gap  Poor R&D investment (0.5% of GDP on average in the last decade. OECD average 2.3%) The region accounts for 1.3% of world R&D activity  Negligible number of researchers dedicated to R&D  Scant access to internet infrastructure Thus there is a need to…

7. Go beyond good intentions by  Translating policy statements into implementation  Fostering pragmatism and inter-policy dialogue between different and complementary policy areas (trade, industry, IPRs, competition, regulation, etc.) and…

8. Promoting a regional perspective in 3 key areas  Access to institutions and infrastructure for innovation Revalorising the role of public sector  Ownership and appropriability of knowledge and innovation Preserve, use and create flexibilities in IPRs systems  Usability and transferability of capabilities Fostering inter and intra-regional cooperation and networking and technology transfer (public-public; public-private)

9. Institutions, infrastructure and capacity building to foster innovation for development José Luis Machinea Executive Secretary UN-ECLAC Thank You