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dc.titleIndustrial Policy in Chile
dc.contributor.authorAgosin, Manuel R.
dc.contributor.authorLarraín, Christian
dc.contributor.authorGrau, Nicolás
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageChile
dc.date.available2012-05-01T00:00:00
dc.date.issue2010-12-01T00:00:00
dc.description.abstractThis paper studies three horizontal policy instruments and two vertical ones in Chilean industrial policy, particularly regarding small and medium enterprises (SMEs). The horizontal instruments are (1) a guarantee program for borrowing by SMEs (FOGAPE), (2) a small subsidy to new exports that was applied from 1985 through 2003, and (3) the innovation subsidies provided by the Corporación de Fomento de la Producción (CORFO). The vertical policy instruments are the activities of Fundación Chile (FCh), a semi-public entrepreneur cum venture capitalist, and a CORFO program to attract foreign direct investment in information technology. Although most programs are well designed, they are numerous and insufficiently funded; Chile could benefit from a prioritization of needs and consolidation of these programs. Moreover, the instruments for making strategic bets on new sectors are particularly weak. In particular, FCh needs to refocus its activities on high-risk projects with long payoffs, something it cannot do with its small endowment.
dc.identifier.doihttp://dx.doi.org/10.18235/0011370
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Industrial-Policy-in-Chile.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectIndustrial Policy
dc.subjectSmall Business
dc.subjectMicrobusiness
dc.subject.jelcodeF43 - Economic Growth of Open Economies
dc.subject.jelcodeL52 - Industrial Policy • Sectoral Planning Methods
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
idb.operationRG-K1098
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