The New Imperative of Innovation: Policy Perspectives for Latin America and the Caribbean
Peer Reviewed
Date issued
February 2016
Subject
Innovation Policy;
Productivity Growth;
Technology-Based Entrepreneurship;
Technology Diffusion;
Knowledge Dissemination;
Investment in Knowledge;
Knowledge Economy;
Knowledge-Intensive Business Service;
Knowledge Creation;
Knowledge-Based Development;
Human Capital;
Public Investment;
Private Investment;
Public Policy
JEL code
O19 - International Linkages to Development • Role of International Organizations;
O31 - Innovation and Invention: Processes and Incentives;
O32 - Management of Technological Innovation and R&D;
O34 - Intellectual Property and Intellectual Capital;
O38 - Government Policy;
O43 - Institutions and Growth;
O44 - Environment and Growth;
O47 - Empirical Studies of Economic Growth • Aggregate Productivity • Cross-Country Output Convergence;
O54 - Latin America • Caribbean
Category
Monographs
The main purpose of this study is to present the conceptual basis that supports science, technology, and innovation (STI) policy in Latin America and the Caribbean (LAC). It starts by clarifying STI relationship, both conceptual and empirical, to economic growth and it explains how market and coordination failures hinder innovation. Then, it discusses a variety of demand- and supply-side policies aimed at addressing these private sector and institutional insufficiencies. In the specific case of LAC, it examines the region's underperformance in innovation relative to both emerging and advanced economies, and analyses the degree to which scientific productivity and knowledge inputs have led to accelerated economic development. Finally, the publication presents five dimensions of success for STI policies based on international best practices that should stimulate innovation and economic growth and guide the IDB's work in STI in the region.
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