Productive Development Policies in Argentina

In contrast to the limited impact of aggregate-level productive development policies (PDPs) in Argentina, micro-level PDPs in several sectors have proven highly successful. This study seeks to understand how these PDPs succeeded in a challenging environment, what kinds of mechanisms were generated to ensure adaptation and learning, and how these PDPs evolved. Of importance is not only policy design and implementation, but also the policymaking. Following a historical overview of PDP in Argentina, the paper presents three case studies: i) the Argentine Technology Fund (FONTAR), a horizontal PDP; ii) the National Institute of Agricultural Technology (INTA), a vertical PDP; and iii) the application of both horizontal and vertical PDPs to the biotechnology sector. Lessons learned and conclusions are presented in a final section.