Innovation for development: the key to a transformative recovery...
Chapter I
(b) Training human resources Given the significant shortage of available staff specialized in research, a growing number of countries have established grant programmes for study abroad. They have also made efforts to develop postgraduate training programmes at the local level and initiatives that contribute to strengthening national innovation systems in the medium and long-term.
(c) Support for business innovation At present, 19 of the 21 countries analysed (RICYT, n/d) already have some type of instrument to support business innovation. The most widely used mechanism is competitive funding that, alongside non-refundable resources, jointly finances R&D projects presented by companies. In general, this involves horizontal funding with no sectoral or thematic priorities and allocated on the basis of criteria such as the degree of innovation of the project and its expectations of financial sustainability. In some countries, such as Argentina, Chile and Uruguay, funds or competitions have been established with sectoral or thematic focuses. In addition to this, there are at least nine countries that have established tax incentives for R&D in various forms.6 Tax credits are the quintessential horizontal instruments for promoting innovation at the company level, and make it possible to redeploy non-reimbursable funds towards promoting innovation in a more focused manner (OECD, 2021).
(d) Promoting innovative entrepreneurship Another line of instruments that has expanded in Latin America and the Caribbean over the last decade relates to the promotion of innovative entrepreneurship. This includes numerous means of support, such as seed capital, promotion of venture capital, access to business incubators and project accelerators, and business and financial training (OECD, 2017). Relevant results can already be seen in countries where such programmes have been implemented and a significant number of the above instruments have been established, taking into account the multiple obstacles to dynamic entrepreneurship.
C. Rethinking the strategic role of science, technology and innovation The review and analysis presented in the previous sections allow us to highlight various distinctive features of the region’s innovation systems and lead us to reflect on the strategic role of science, technology and innovation policies. Institutional changes have been introduced in various Latin American and Caribbean countries, which has enabled the creation of relevant ministries or other high-level political institutions. However, these new entities have not yet led to science, technology and innovation playing a more active role in productive and social development policies, or only to a limited extent. There is still a certain predominance of basic science compared to applied science and experimental development. Latin American countries tend to prioritize support for research conducted in universities and research institutes, entities focused on conducting basic research and, to a lesser extent, applied research. To that end, there are relatively established instruments that channel a significant proportion of public expenditure for research and development towards those entities. Evidence of this is the clear increase in the number of scientific publications in recent years, even as patent applications and acquisitions have decreased. This situation is confirmed by the relative stagnation of business participation in financing and carrying out R&D activities in the region.
6
At present, there are tax credit instruments for R&D activities in Argentina, Brazil, Chile, Colombia, Jamaica, Mexico, Peru and Uruguay.
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