TOriacnet.org/archivos/nuevo/Signs of Competitiveness in... · 2014. 6. 5. · economic development and the role of the Diaspora in this process. Doctor Bhoendradatt Tewarie, Minister

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SIGNS OF COMPETITIVENESS IN THE AMERICAS 201202PAGE

A Contribution of the Inter-American Competitiveness Network (RIAC) to the Region

Message from the RIAC Chair Pro Tempore 2012

As Chair Pro Tempore of RIAC, I am pleased to deliver this first report of the Network, called “Signs of Competitiveness in the Americas.” In this publication, we draw attention to our commitment and diverse efforts to make the Americas a more competitive region.

This report presents over fifty cases where countries of the Americas have demonstrated their leadership and commitment to advancing innovative solutions for the promotion of prosperity and whose actions reflect the 10 General Principles of Competitiveness which were established in the Consensus of Santo Domingo.

With this report, our countries now have a new way to strengthen our partnerships, and this makes for a great moment because, through RIAC, we can maintain a fluid dialogue in 2013. This will enable us to develop the concrete opportunities for collaboration which are expressed in this report.

The Americas, united through RIAC, have great potential to continue the path of growth and development of recent years. This means excellent opportunities to advance and build a more prosperous future as a region, as well as to harness the talents of our peoples.

Colombia reaffirms its commitment to this important hemispheric initiative, and I must say that, personally, I am very satisfied with what we have advanced. As such, and on behalf of the Colombian Government, I would like to thank all Members of RIAC for their valuable support and to wish every success to our work ahead in Panama in 2013.

Sergio Díaz-Granados GuidaTrade, Industry and Tourism MinisterRepublic of Colombia RIAC Chair Pro Tempore

Liberta y Orden

Sergio Díaz-Granados Guida

A CONTRIBUTION OF THE INTER-AMERICAN COMPETITIVENESS NETWORK (RIAC) TO THE REGION / WWW.RIACREPORT.ORG05PAGE

Message from the RIAC Technical Secretariat

One of the main missions of the OAS is to promote hemispheric dialogue on public policy at the highest level to spur cooperation and exchanges between the Member States.

We are therefore pleased to have with us the highest competitiveness and innovation authorities of the region gathered here in Cali, Colombia, answering the call issued by the Heads of State and Government at the VI Summit of the Americas in Cartagena de Indias. Our leaders highlighted the importance of the Americas Competitiveness Forum and the Meetings of the Inter-American Competitiveness Network (RIAC).

We believe competitiveness transcends national borders, and that despite the differing viewpoints and models in the region this subject is doubtless fundamental to all our countries. If we maintain a long-term inclusive vision aimed at promoting greater productivity, institutional and entrepreneurial potential, investment and innovation in our countries, we will be able to set the foundations to achieve the necessary

economic growth to fight poverty, reduce inequality, and strengthen democracy in the Americas.

As the RIAC’s Technical Secretariat, I wish to express our sincere recognition for the excellent work of the Chair Pro Tempore 2012, Colombia, headed by its Minister of Trade, Industry and Tourism, Mr. Sergio Díaz-Granados. Its leadership, coupled with the valuable contributions of the Colombian private sector and the generous and constructive efforts of all RIAC Members, is reflected in the first edition of the Signs of Competitiveness in the Americas Report, evidence of the important results that can be achieved through supportive cooperation between our countries, regardless of their level of development.

You can count on our determined commitment as Technical Secretariat to continue to support the work of the regional public good that is the RIAC. Also, I invite you to continue to work together to take advantage of our complementarities, build greater synergies, and turn current favorable conditions in the region into a platform to achieve a better quality of life for the entire population of the Americas.

José Miguel InsulzaSecretary GeneralOrganization of American States

José Miguel Insulza


EXECUTIVE SUMMARY 07

MESSAGE FROM PANAMAChair Pro Tempore RIAC 2013

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INNOVATION IN THE AMERICAS Engine for Growth and Development

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EXPERIENCES IN THE AMERICAS Progress on the 10 General Competitiveness Principles

38 ACKNOWLEDGEMENTS

Barbados Chile Colombia

Costa RicaEcuador El SalvadorUnited States GuatemalaJamaicaMexicoPanamaPeruDominican RepublicSurinameTrinidad and TobagoUruguay

Compete Caribbean ProgramCAF-Development Bank of Latin America

Inter-American Development Bank Economic Commission for Latin America and the Caribbean Central American Bank for Economic IntegrationOxford Economics and OEA Professor Clayton ChristensenProfessor Vijay Govindarajan Minister Bhoendradatt TewarieProfessor Cardinal WardeGlobal Federation of Competitiveness Councils International Intellectual Property Institute

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The first edition of the Signs of Competitiveness in the Americas (SCA) Report is the result of collaboration between Competitiveness Authorities and Councils of the Americas and the institutions that support the work of the Inter-American Competitiveness Network (RIAC). It contains two main sections, one offering a broad view of innovation, and the challenges and opportunities we face as a region; and another that includes more than fifty country and institutional experiences related to the ten general principles of competitiveness.

The Decalogue on Competitiveness is part of the Consensus of Santo Domingo approved by representatives from more than thirty countries in October 2011, during the Annual Meeting of the RIAC. The Meeting was held in the framework of the V Americas Competitiveness Forum (ACF) in the Dominican Republic and adopted the Consensus and its principles as a central element of the 2020 vision for the Americas.

At the beginning of its term, the Ministry of Trade, Industry, and Tourism of Colombia, as the Chair Pro Tempore of the RIAC and host of the ACF, selected the principle of innovation as a priority and declared 2012 the “Year of Innovation of the Americas.” As such, the institutions that support the work of the RIAC and other collaborators have made special contributions to the report, most of them focusing on the central subject of the VI Americas Competitiveness Forum: “Innovation for Prosperity”

The section on “Innovation in the Americas” in the SCA Report includes a general overview of the landscape of innovation in the Americas, with an evaluation of the region’s main strengths and weaknesses to remain competitive vis-à-vis the rest of the world.

The research piece by the Inter-American Development Bank (IDB) indicates that the countries of Latin America and the Caribbean (LAC) continue to lag behind in terms of scientific, technological and innovative capacities. Factors in the creation of innovation, such as investing in Research and Development (R&D), private sector involvement in the system of innovation, human capital, scientific publications, patents, and the use of Information and Communication Technologies (ICTs), do not correspond to the size of the countries’ economies or the level of income of their populations. Nevertheless, innovation is recognized as a fundamental component for long-term economic development and a key factor to improve the quality of life of citizens in the Americas. On the other hand, the IDB suggests that innovation also plays an important role in addressing issues on the social agenda. While the countries of LAC simultaneously face global challenges (such as climate change, access to energy, food security) and national concerns (reducing poverty, facing inequality, and low productivity), innovation can play an important role in defining the road ahead.

EXECUTIVE SUMMARY


To support the efforts of the countries of Latin America and the Caribbean to promote innovation, the diversification of their economies, and achieve long-term sustainable development and inclusive economic growth, the Economic Commission for Latin America and the Caribbean (ECLAC) offers a summary of seven fundamental challenges for the region. Among them are a broadening of the productivity gap between Latin America and developed countries, the high concentration of economic sectors based on raw materials, the need to diversify the economy toward activities of medium and high technology, training and incentive-led improvement of skills to benefit the quality of the workforce, low levels of public and private investment in R&D, and the limited patenting activity by residents in a majority of countries of LAC. As ECLAC has indicated, these challenges invite countries to prioritize and update public policies and institutional capacities to support innovation and assign a budget to implement them.

The Central American Bank for Economic Integration (CABEI) presents a diagnosis of entrepreneurship in Central America, noting that the countries of the region have not yet exploited their creative and innovative capacity. Support programs for SMEs are more directed to subsistence ventures and not to the development of innovative opportunities in the markets. It establishes that entrepreneurship must be a fundamental axis in the development policies of every one of the countries and recommends programs on incubation, entrepreneurship, seed capital funds, and tax incentives.

The study prepared by Oxford Economics for the OAS notes that given the high degree of urbanization in Latin America and the Caribbean, cities are in effect drivers of innovation in their respective countries. It highlights the five immediate challenges to becoming world-class centers of innovation: (1) develop creative people, (2) deploy innovative governance, (3)

encourage innovative companies, (4) foster innovation in firms, and (5) support innovation hubs and hotbeds. It estimates that the innovation premium for cities—that is, the additional economic dividend they gain from their investments—is 42%, in addition to a considerable increase in job creation.

The section on innovation also includes interviews with distinguished experts and personalities from the world of creativity and entrepreneurship that bring their ideas to the Americas Competitiveness Forum. Professor Clayton Christensen of the Harvard Business School, award-winning author on innovation and economic growth, shares his ideas on disruptive innovation and the necessary environment for developing world-class innovation centers in Latin America and the Caribbean. Professor Vijay Govindarajan, renowned international expert on strategy and innovation, discusses the concept of reverse innovation and notes that it is possible to develop innovation with a global impact in developing countries. Doctor Cardinal Warde, world leader in optical systems, MIT Professor and Founding President of the Caribbean Science Foundation, shares his view on the need to promote science and technology as a fundamental element for economic development and the role of the Diaspora in this process. Doctor Bhoendradatt Tewarie, Minister of Planning and Sustainable Development of Trinidad and Tobago, with a long trajectory of promoting competitiveness in the Caribbean, presents his perspective on the creative industries and their potential to contribute to the economic development of Trinidad and Tobago and the Caribbean. The final part of the section on Innovation contains a contribution by the Global Federation of Competitiveness Councils (GFCC), describing best practices and case studies that are disseminated from the private sector through Competitiveness Councils around the world.


The International Intellectual Property Institute (IIPI) discusses the principal challenges to making the most of intellectual property rights to improve competitiveness.

Other RIAC institutions have contributed experiences on best practices that are incorporated into the profiles of programs that RIAC countries have selected and that are described in the second section of this Report. The CAF, the Development Bank of Latin America, shares its Competitive Cities Program in Cuenca, Ecuador, and Barranquilla, Colombia, cities in which, based on productive development strategies and public-private partnerships, significant progress is achieved on innovation and entrepreneurship. The Compete Caribbean Program describes its experience in the design of a coordination effort between donors to address priorities on matters of competitiveness in the Caribbean, and the important results it has achieved to date. The Monterrey TEC presents its methodology and experience in measuring subnational competitiveness and the formulation of local competitiveness agendas to define priorities and promote regional development. CIFAL highlights model practices on matters of education in science, technology, engineering and mathematics. These last contributions are available in the complete version of the Signs of Competitiveness in the Americas Report at the online RIAC Observatory.

The section on “Experiences in the Americas” of this Report offers a general summary of the initiatives developed by Barbados, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Jamaica, Mexico, Panama, Peru, Suriname, Trinidad & Tobago, United States, Uruguay, the Development Bank of Latin America– CAF, and the Compete Caribbean Program. The experiences shared are related to the ten general competitiveness principles, in particular to issues regarding the strengthening

of institutions; the promotion of simple, stable, and efficient regulatory frameworks; high-level innovation and entrepreneurship; the use of information and communication technologies; the importance of improving access to capital, especially for micro, small, and medium enterprises.

In general, the content summary of every experience makes reference to its principal objective, relevance, results, and it highlights the concrete opportunities for collaboration that exist with other Members of the RIAC. Each summary indicates what the different institutions can offer (for example: information sharing, technical assistance, or experts); and what would be desirable from other countries (for example: knowledge about similar experiences, successful methodologies that add and/or complement program components, etc.). This process seeks to increase the impact of the projects in each country and give joint feedback on the work and mechanisms that ensure their success.

The original texts of the experiences submitted by the countries and institutions are available in the complete version of the Signs of Competitiveness in the Americas Report at www.riacreport.org


The advent of knowledge-based economies has highlighted the growing importance of innovation and intellectual assets as sources of competitiveness and long-term growth. At the same time, climate change and the evident limitations of the availability of conventional energy sources present challenges that require immediate action and coordination at the international level. In response to these challenges, the governments of the most developed regions are investing more in knowledge and innovation as a means to drive economic recovery and favor the development of new sustainable economic capabilities.1 In addition to facing these global challenges, the countries of Latin America and the Caribbean continue to address national challenges like mitigating poverty, reducing inequality, and lowering the persistent productivity gap that separates them from developed economies.

Contribution of the IDB excerpted and adapted from the publication “The Imperative of Innovation- Creating Prosperity in Latin America and the Caribbean”) (IDB, Second Edition, 2011)

INNOVATION IN THE

THE LANDSCAPE OF INNOVATION IN THE AMERICAS

Engine of Growth and Development

AMERICAS

1. Organization for Economic Cooperation and Development (OECD). 2011. OECD Main Science and Technology Indicators. Online data-base. Paris.


While they struggle to address both global and national concerns, countries of the region are beginning to recognize the importance of innovation, not only for long-term economic growth and development, but also for the wellbeing of society. It is increasingly clear that by strengthening their technological abilities, countries will be able to reorient their economies to achieve a virtuous cycle of growth in productivity, greater value added activities, and better quality of life. What’s more, the new technologies offer new solutions for advancing the social agenda. In particular, information and communication technologies (ICTs) provide valuable tools to strengthen social inclusion through applications in areas such as education, healthcare, and greater transparency in public services. Emerging technological revolutions such as those in biotechnology and nanotechnology can bring new tools to the economies of Latin America and the Caribbean to face some of the aforementioned global challenges.

Nevertheless, in almost all relevant dimensions of the landscape of science, technology and innovation, the performance of countries in the region is substantially lower to that of Organization for Economic Cooperation and Development (OECD) countries and the European Union, or to that of emerging economies like China, India, and some Central European countries. But it is important to recognize the impressive heterogeneity of the Latin American region. Brazil, and to some degree Argentina, Chile, and Mexico, have begun to develop a technological profile closer to that of advanced economies, while the rest of the region continues to lag behind.2

While between 1999 and 2009, advanced economies saw systematic growth in R&D investments as a share of Gross Domestic Product (GDP), improvements in countries of Latin America and the Caribbean were modest on average. According to calculations by the Network for Science and Technology Indicators (RICYT), in 2009 investments in R&D in the region were equivalent to 0.69% of GDP, while in 1999 they represented 0.55%. During this same period, OECD countries increased their strength in R&D from 2.16% to 2.40%.3 Moreover, initiatives in Latin America and the Caribbean to improve investments in R&D are limited to a few countries. In 2007, 60% of regional expenditures in R&D were made in Brazil, the highest in the region, at 1.09% of GDP. 4

In terms of income level as well, a majority of Latin American countries continues to register low levels of R&D intensity. In other words, countries invest considerably less than what they might be expected to based on their income level. The gap between the expected R&D intensity with respect to the national income and the actual intensity has been smaller in countries like Chile, Uruguay, Costa Rica, and Brazil (40% to 50%) and larger in countries like Guatemala, where the gap is close to 100%.5 At the other extreme, European leaders on innovation such as Denmark, Sweden, and Finland, register performances well above those corresponding to their income levels.6 Another characteristic of Latin America and the Caribbean is the scant participation of the private sector in innovation. The financing of R&D and its performance continue to be largely in the domain of public institutions (government organizations and universities), and represent some 59% of total investments, while in the OECD countries that figure is 35%.

2. IDB (Inter-American Development Bank). 2010a. Pagés, C. (ed.) The Age of Productivity: Transforming Economies From the Bottom Up. Development in the Americas. Washington, DC, Inter-American Development Bank-Palgrave-Macmillan.3.RICYT (Network for Science and Technology Indicators). 2011. Database of indicators, 2011. Available at: http://www.ricyt.edu.ar.; OECD, 2011.4.IDB (Inter-American Development Bank). 2010b. A Compendium of Indicators in Science, Technology and Innovation for Latin America and the Caribbean. Washington, DC, Inter-American Development Bank.5. IDB, 2010b6. Lederman, D. and W. Maloney. 2003. “R&D and Development.” World Bank Policy Research Working Paper N.º 3024. Available at: SSRN: http://ssrn. com/abstract=402480.


The differences in terms of human capital are similarly substantial. According to available data, in 2007 there was in Latin America and the Caribbean an average of a single researcher for every 1000 members of the working population. This figure is seven times lower than the OECD average and nine times lower than that of the United States. The number of doctorate degrees (in science and technology) per person is also significantly lower. On average, Latin America and the Caribbean have 2.5 doctorates for every 100,000 people, of which only 1.6 are in science and technology. By contrast, the United States and Spain have, respectively, 18.8 and 14.8 doctorates for every 100,000 people, and half of them are in science and engineering.7

The scientific and technological performance of the region also continues to lag behind with respect to developed countries. Latin America and the Caribbean generate less than 50 scientific publications for every one million people, in contrast with the more than 300 published in advanced economies.8 However, the number of regional publications has tripled during the last decade and a half. Brazil, Argentina, and Mexico, have joined the top 50 countries of the world in scientific publications. Despite such achievements, the technological performance of economies in Latin America and the Caribbean continues to be very low. In 2009, the Republic of Korea registered 18 patents for every 100,000 residents (according to the United States Patent and Trademark Office), while in Latin America and the Caribbean that figure was less than one.

The limited number of patents granted is a direct consequence of the lack of connection between researchers and the productive sector. There are significantly fewer researchers employed in

businesses in the region (40% on average) than in the OECD countries (64%). This difference can be explained through a combination of factors that include, among others, deficient mechanisms for connecting to markets, the focus of research capabilities (directed in many cases toward basic research), a mismatch between demand and supply (lack of relevance or applicability to the needs of industry), and the particularities of institutional systems that keep the research and education systems of private sector enterprises disconnected (lack of incentives for mobility).

Another problem is that industries do not recognize the importance of research for learning and innovation. On average, the R&D intensity in businesses (expressed as a percentage of sales) is less than 0.2%, a figure much lower than the average of 1.61% observed in Europe, or 1.89% in OECD countries. As a consequence, the results of innovation are mainly focused on adapting, that is, on acquiring knowledge or technologies that already exist in local or global markets, even if they are new to a particular business.9 In fact, expenditures in capital goods and equipment represent between 50% and 80% of total expenditures on innovation, while in OECD countries the corresponding percentage oscillates between 10% and 30%.

Another key factor in creating a knowledge-based economy and promoting innovation in a society is the exponential growth of the volume and the speed of circulation of information generated by the information and communication technologies (ICTs). In fact, since ICTs considerably lower the costs of information storage and transmission, their widespread use reduces uncertainty as well as transaction costs of economic interactions. ICTs shorten geographical distances reducing

7.IDB, 2010b. 8.National Science Foundation (NSF) 2008. Science and Engineering Indicators. Washington, DC 9.Navarro, J. C., J. J. Llisterri and P. Zuñiga. 2010. “The Importance of Ideas: Innovation and Productivity in Latin America,” en Pagés, C. (ed.) The Age of Productivity: Transforming Economies from the Bottom Up. Development in the Americas. Washington, DC, Inter-Ameri-can Development Bank-Palgrave-Macmillan; IDB, 2010a. 10.Pérez, C. 2008. “A Vision for Latin America: A Resource Base Strategy for Technological Dynamism and Social Inclusion.” Presented to the ECLAC Programme of Technology Policy and Development in Latin America.

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asymmetries of information and barriers to market entry.10 This, in turn, leads to an increase in the volume of transactions, creating higher levels of production with the same inputs; in other words, ICTs generate higher levels of productivity. 11

A recent IDB study12 finds that in Latin America and the Caribbean there is still an important digital gap relative to OECD countries on matters of adopting ICTs. With the exception of telephone technologies, the gap in other technologies (Internet, broadband, and personal computers) continues to expand. This analysis seems to indicate that there are two other digital gaps in the region. One between the countries of the region: while a few of them have reached levels similar to those of less developed OECD countries, a huge group of countries lags behind. The other digital gap occurs within countries; the region shows inequality indicators greater than those of Europe. ICT adoption and use is still insufficient also in regional firms, especially in SMEs.

In conclusion, the countries of the region continue to lag behind in terms of scientific, technological, and innovation capabilities. The most drastic shortfall in R&D investments is seen in the business sector. Some of these problems are due to the market’s inability to offer sufficient funds and incentives for innovation. This situation highlights the need for an effective policy design and new public policy approaches.

Therefore, without ignoring the need for a favorable macroeconomic (and microeconomic) environment, public policy must address the fragile articulation of national systems of innovation, the needs of SMEs, and the creation of new businesses, as well as seeking a better balance between basic and applied research (further oriented to solve local problems and satisfy industry demands) and promote the dissemination of ICTs. Greater progress is also needed in creating and implementing adequate regulatory frameworks for innovation.

11. Chen, D. and C. Dalhman. 2005. “The Knowledge Economy, the KAM Methodology and the World Bank Operations.” World Bank Insti-tute. Unpublished. 12.Cathles, A., Crespi, G. and Grazzi, M. 2011. “The Region’s Place in the Digital World: A Tale of Three Divides” en Chong, A. (ed.) Develop-ment Connections: Unveiling the Impact of New Information Technologies. Development in the Americas. Washington, DC, Inter-American Development Bank-Palgrave-Macmillan.


In recent decades, the countries of Latin America and the Caribbean did not identify science, technology, innovation, or technological change as key elements for the development of their economies (especially after the decade of the nineties, in which the countries of the region favored growth models based on macroeconomic stability and inflation control). But in recent years, the idea has regained strength that to be able to grow in a sustained, long-term and inclusive way, innovation and productive development must be prioritized in these countries’ development strategies. 13

The region needs to stimulate the strengthening of national systems of innovation that are, for the most part, in an incipient stage of development and are characterized by few interactions between a very limited number of stakeholders, with islands of technological excellence that coexist in a context of high informality, with a large number of businesses with scant technological development and very low productivity, and in which training as well as the quality of education are still critical factors to consider. Thus, it is of fundamental importance to stimulate domestic scientific and technological capacities, increase the ability to transform these advances into business opportunities oriented towards

competitiveness, and generate quality jobs to meet both domestic demands and those of the international market.

The progress achieved by countries of Latin America and the challenges they currently have on matters of innovation and productive development can be summarized in seven main points: 14

1. The gap in productivity with respect to developed countries is a persistent problem, and the region needs to increase its investment levels to be able to close it. For example, it is evident when comparing the productivity of the manufacturing sector in Latin America with that of the United States that the technological gap not only fails to close but actually expands in recent years.15 Labor productivity in the region between 2003 and 2007 grew at an annual rate of 2%, while productivity in the United States has grown some 3% to 5% annually since the mid-90s. 16

2. A country’s capacity to close the productivity gap depends on its productive specialization and the approach to entering global markets. 17 Latin America’s lag is apparent at both the quantitative level—given the gap in productivity—and

INNOVATION AND PRODUCTIVE DEVELOPMENT IN LATIN AMERICA AND THE CARIBBEAN (LAC): MAIN TRENDSECLAC Contribution to the Report “Signs of Competitiveness in the Americas”

13.ECLAC-OECD (2011). Full reference not provided in this summary. 14. Ibid. 15. ECLAC (2010). Full reference not provided in this summary. 16.Ibid. 17. ECLAC (2008). Full reference not provided in this summary.


the qualitative level, due to high-level sector specialization in natural-resource-intensive activities (Graph 1).

In the region, natural-resource-intensive sectors continue to represent 60% of the total value added in manufacturing, while the United States has registered a strong increase in knowledge-intensive sectors, which have come to represent 60% of the total value added in manufacturing. Due to this change, the United States practically doubled its labor productivity between 1990 and 2007.

Graph 1LATIN AMERICA AND THE UNITED STATES: PRODUCTIVE SPECIALIZATION AND LABOR

PRODUCTIVITY, 1990-2007 18 (In percentages)

Source: ECLAC (2010) Full reference not provided in this summary.

3. Primary commodities and products based on natural resources represent more than 50% of the region’s exports, 19 which is why export diversification and the diversification of the productive structure seems essential. In recent years, a process of “commoditization” of exports has taken place, due mainly to an increase in the demand for primary commodities and their high prices. Basically, there are three groups of countries within the region: those

in the Southern Cone, focused on primary commodities and manufactured products based on natural resources; those in Central America, specialized in the export of medium- and low-technology manufactured products derived from the export manufacturing industry; and a group made up of Costa Rica, Brazil, and Mexico, which have the highest level of regional export diversification, including medium- and high-technology manufactured products.

4. There is a mismatch between the demand and supply of qualified human resources for innovation. It is necessary both to increase the quality and quantity of human resources for innovation and to create incentives for job creation. This challenge is crucial for all countries of the region. For example, Argentina and Uruguay are characterized as having high levels of education, and they need to make progress in coordinating education and productive development policies to improve the productive sector’s competitiveness. In Brazil, the need is to strengthen its productive matrix’s technological intensity, while smaller countries suffer from an intensive process of “brain drain” and need to attract qualified human capital.

5. The percentage of the Gross Domestic Product (GDP) that Latin America invests in research and development (R&D) is less than a fourth of what is invested in developed countries. (Graph 2). Investment heterogeneity in R&D in countries of the region has broadened in recent years, while, for example, in Central American countries it is not above 0.1% of GDP, and in Brazil it is equivalent to 1.2%.

6. The private sector invests little in innovation and in R&D. Unlike what has been observed in developed countries, in Latin American economies the productive sector devotes limited resources to innovation (Graph 2). The gap in R&D will not be breached without a substantial increase in private investment alongside

18. Note: The vertical axis measures the accumulated quota of the value added of each sector in the manufacturing total. The horizontal axis measures the labor productivity (in constant 1985 dollars) of each manufacturing sector.19.Figures refer to 2008, the last year available for the source used, the United Nations Commodity Trade Statistics Database (COMTRADE) [http://comtrade.un.org].


growing and improved support by the public sector. For this reason, it is of fundamental importance to move forward in the design of incentives and public policies that stimulate private sector investment in innovation activities. This requires coordinating technological and innovation policies with productive development and business policies.

Graph 2LATIN AMERICA AND OECD: INVESTMENT

IN R&D AND DISTRIBUTION ACCORDING TO ORIGIN OF FUNDS, 1990-2009

Latin America

OECD

Source: ECLAC-OECD (2012). Full reference not provided in this summary.

Innovation surveys reflect that businesses in Latin America have a low level of cooperation, especially with scientific and technological research institutes. In Mexico, only 4.5% of innovative companies collaborate with institutes on R&D projects, and in countries where this tendency is greater, such as Argentina and Uruguay, the percentage does not rise above 12%.20 This is due mainly to sectoral specialization (with most businesses in low knowledge-intensity sectors) and a lack of culture and incentives for greater collaboration between research institutes and the private sector.

Access to markets is also an important factor among other incentives to innovation; the existence of business development programs that support exports of innovative businesses is equally fundamental in generating an environment that favors private sector investment in innovation.

SMEs face greater challenges to innovation than larger businesses. According to national surveys on innovation, the smallest firms experience a series of inconveniences, such as access to credit markets, a smaller possibility of diversifying risk, problems of scale and export barriers, all of which reduce their possibilities of investing in innovation activities. To spur innovation in SMEs it is necessary to have public policies that eliminate or reduce the bottlenecks they face.

7. Patenting in the region is limited but growing. However, foreigners get more patents than residents of Latin America. Countries of the region have increased the number of patents applications in international patent offices, but they are far from reaching the pace of Asian countries. For example, while in 1995 the countries of Latin America and the Caribbean registered 196 patents with the Office of Trademarks and Patents of the United States

20. Primi and Rovira (2011). Full reference not provided in this summary.

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(USPTO), Asian countries, not including Japan, registered a total of 3,545; in 2009, the Asian region had 20,036, while Latin America and the Caribbean were granted 290 patents. At the same time, patent offices in regional countries have become more modern and have improved their services and procedures.

This brief overview shows a region facing great challenges as a whole in achieving the necessary levels of competency and capabilities to successfully participate in the global knowledge-based economy. There has been important progress, if limited to certain sectors, territories, or groups of businesses. At the same time, changes in global markets and new paradigms—such as information and communications technology (ICTs), biotechnology, nanotechnology, and new materials—reshape the innovation landscape and increase the complexity and ways of innovating. These new paradigms require considerable investments in Research and Development and complementary activities (technological and business services, training, infrastructure, and business development, among others). Dialogue between businesses, universities, civil society, and public sector agencies is fundamental in designing better instruments and raising financial resources with the goal of increasing the impact of public action.

The trends described here represent great challenges for the State and highlight the need for an evolution in public policies and in institutional capacities to support innovation. In addition, there are the expectations of the short- and medium-term impacts of innovation policies on competitiveness in global markets and the creation of jobs. All of this creates an additional pressure to prioritize innovation in government programs and in the budgets assigned to innovation, both by the public and private sectors.


One of the great challenges facing the region is poverty reduction, which has been addressed through various mechanisms that have only given partial results. This is why it is imperative to continue working in this priority and involve the private sector in a more systematic way. The private sector is a critical player to accelerate economic growth in countries of Central America and consequently improve the quality of life for Central Americans. The creation of dynamic businesses is one of the basic pillars in the development of the private sector. Entrepreneurs, when developing new businesses, meet the needs of the population, facilitate productivity increases, and generate a majority of the jobs in 21st-century economies.

Due to various factors, the countries of Central America have not yet exploited their creative and innovative capacities. These assets are necessary to accelerate the economic development of the region and to contribute business solutions capable of generating competitive participation of the private sector not only in the local market but also in international trade.

The diagnosis of the situation of entrepreneurship in Central America reveals that entrepreneurial activity in the different countries of the region cannot be analyzed without taking into account the actual stages of economic development in each Central American country.

DIAGNOSIS OF ENTREPRENEURSHIP IN CENTRAL AMERICAContribution of the Central American Bank for Economic Integration

Adapted from the publication “Diagnosis of Entrepreneurship in Central America,” of the Central American Bank for Economic Integration (CABEI), the German Development Bank KfW, German Technical Cooperation (GTZ), and CENPROMYPE, April 2010


With very low average rates of schooling, physical and logistic infrastructures that do not allow for adequate levels of competitiveness, existing entrepreneurial processes are more focused towards ventures that arise out of a need for subsistence than from having visualized innovative market opportunities.

In general, support programs focus for the most part on more consolidated undertakings, the small and medium enterprises (SMEs), without sufficient efforts to support the creation of new ventures. Moreover, there is no public institution that systematically supports the generation of new ventures which can be the breeding ground for new ideas and business opportunities.

SME programs are mainly supporting subsistence entrepreneurship. When implemented, these are essentially welfare-type programs. These efforts do not generate a transformation of entrepreneurship; they allow subsistence entrepreneurship, informality or self employment to continue without generating business acceleration into innovative ventures and opportunities. Therefore, welfare-type programs in the region have perpetuated the economic informality of nascent businesses.

In most countries of the region, support policies do not focus on the entire entrepreneurial process. These programs tend to divide and concentrate in only some stages, such as the promotion of SMEs, without addressing the process of strengthening the business culture and the creation of new enterprises.

Financial support for the creation of businesses is very scarce and exists only under the traditional framework of taking a bank loan with collateral, which in most cases leads the entrepreneur to failure or what is often called the valley of death.

The Central American region has concentrated in supporting existing businesses, especially SMEs, but no programs or institutional policies to empower and support new businesses have been implemented. There are no support channels to bring nascent ideas or prototypes to the market. The region does not support the generation of new social wealth to rejuvenate the productive sector of the countries.

Entrepreneurship must be a fundamental axis in the development policies of every country; support for the entrepreneurial process from an integral perspective will lead to a development model based on the generation of wealth more than a development model based on job creation.

The following five programs must be undertaken in the different countries of the region as tools to implement enabling public policies for the entrepreneurial process:

1. The creation of a National System of Incubation;

2. The implementation of a National Entrepreneurship Program;

3. The creation of Seed Capital Funds;

4. The implementation of an entrepreneur awareness program in schools and colleges;

5. The granting of tax incentives to new businesses.


Innovation will determine success

Traditionally, innovation has been measured by the number of patents per capita and the concentration of workers in research and development. Using these measures as proxies for innovation shows that Gross Domestic Product (GDP) tends to rise as with increasing innovation. The World Economic Forum’s Global Competitiveness Report ranks countries on a number of factors relating to competitiveness, one of which is innovation. Table 1 below displays innovation rankings and scores for Latin American and Caribbean countries. The five best performers (in order of success) according to this ranking are Costa Rica, Barbados, Chile, Panama, and Brazil. The innovation score was calculated by considering seven factors (1) capacity for innovation, (2) quality of scientific research institutions, (3) company spending on research and development, (4) university-industry collaboration in research and development, (5) government procurement of advanced technology products, (6) availability of scientists and engineers, and (7) Patent Cooperation Treaty (PCT) patent applications.

Innovative Cities: Key Challenges for Latin American and Caribbean CitiesContribution of Oxford Economics and the OAS

Adapted from “Innovative cities:Key Challenges for Latin American and Caribbean Cities“A Report for the Organization of American States (OAS)Oct 2012

21. For a complete explanation, see Audretsch, David B., Agglomeration and the Location of Innovative Activity, Oxford Review of Economic Policy, Vol. 14, No. 2 (1998).

Table 1: 2012-2013 Global Competitiveness Report Innovation

Rankings: Latin America and the Caribbean 21

Argentina

Barbados

Bolivia

Brazil

Chile

Colombia

Costa Rica

Dominican Republic

Ecuador

El salvador

Guatemala

Guyana

Haiti

Honduras

Jamaica

Mexico

Nicaragua

Panama

Paraguay

Peru

Suriname

Trinidad and Tobago

Uruguay

Venezuela

91

40

83

49

44

70

38

118

96

128

90

76

143

112

86

56

116

45

132

117

124

104

69

131

3.0

3.63.0

3.4

3.53.2

3.6

2.7

3.02.5

3.03.1

2.0

2.8

3.03.3

2.73.5

2.42.7

2.6

2.9

3.2

2.4

Country Innovation rank(out of 144)

Score(1 to 7)


Innovation, however, encompasses attributes beyond the seven measures employed by the World Economic Forum. Generally, innovation encourages the creation of new ideas, and is associated with economic growth through the spillover effects of clustering. When clusters of firms develop, companies that locate near their competitors benefit from a larger and higher quality labour pool, a more competitive supply chain, and learn to perform at a higher level as they strive against counterparts. Individual firms profit from higher quality employees and technologies that allow for higher levels of productivity.22 Chart 1 shows the positive relationship between innovation and productivity per worker..

Chart 1: Productivity and innovation in Latin America and the Caribbean

Source: World Bank, World Development Indicators, April 2012, and World Economic Forum,

These attributes of innovation do not apply solely at the country level. Given the high degree of urbanisation in Latin America and the Caribbean (as shown in Chart 2), cities are, in effect, drivers of innovation in their respective countries because they house significant proportions of the population and represent large clusters. This is why the majority of predicted job creation between 2010 and 2025 will accrue to cities.

Chart 2: Urban population trends

Source: World Bank, World Development Indicators, April 2012

Meeting the innovation challenge

To enable modern cities to compete effectively and efficiently, innovation and creativity must be at the heart of urban development. An Australian innovation agency, 2thinknow, releases an annual ranking of the 100 most innovative cities. In 2011, the first five spots were awarded to Boston, the San Francisco Bay Area, Paris, New York, and Vienna. Although Latin American and Caribbean cities are on a positive growth trend, it will be some time before they reach the standards of living equal to the most creative and innovative world-class cities.

A McKinsey Global Institute study evaluated 198 Latin American cities and concluded that none of them could compete globally on the innovation front. It found that while Buenos Aires has the highest number of high-tech patents (6 annually) in the region, New York has 850 per year.23 As they strive to become world-class centres of innovation, the five immediate challenges facing Latin American and Caribbean cities are (1) finding creative people, (2) deploying innovative governance, (3) encouraging innovative companies, (4) fostering innovation in firms, and (5) supporting innovation hubs and hotbeds.

22. McKinsey Global Institute, Building Globally Competitive Cities: The Key to Latin American Growth, August 201123. Glaeser, Edward L. and Saiz, Albert, The Rise of the Skilled City, Harvard Institute of Economic Research, Discussion Paper 2025, 2003

Prod

ucti

vity

per

wor

ker (

Curr

ent U

S$)

Innovation Score (1 to 7)

25,000.00

Venezuela

Uruguay

Argentina

Suriname

Haiti

Paraguay

Nicaragua

Honduras BoliviaGuyana

EcuadorDominican Republic

PeruJamaica

GuatemalaEl Salvador

Colombia

Brazil

Mexico

Panama

Costa Rica

Chile

Latin America & Caribbean

Trinidad and Tobago Barbados20,000.00

15,000.00

10,000.00

5,000.00

1.51 .8 2.02 .3 2.52 .8 3.03 .3 3.53 .8 4.00.00

90

Latin America And Caribbean

Urb

an p

opul

atio

n (%

of t

otal

)

North America

European Union

80

70

60

50

40

30

1960

1962

1964

1966

1968

1970

1972

1972

1976

1978

1980

1988

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010


1) Finding creative people

Creative people are not just artists and designers. Also included are entrepreneurs, people who can create new markets, and those who can seize new opportunities. These people generate innovative ideas and are active participants in the innovative economy. One measure of creative people (but not the only measure) is the level of education of city residents. According to Glaeser and Saiz (2003), “for more than a century, in both the United States and Great Britain, cities with more educated residents have grown faster than comparable cities…” 24 In Latin America and the Caribbean, the city of Santiago has been a regional pioneer in reforming its education sector and as a result has the highest PISA25 test results among peer cities. Improvements can be linked to extended school days, an innovative teaching certification programme, and performance-linked teacher compensation.26 Improvements such as these increase the supply of talented and creative people in the economy.

2) Deploying innovative governance

Good governance and planning is crucial to building a successful city. City governments must not only respond to citizens’ concerns, but they must also be forward-looking and plan for the next 20 years. Not all Latin American and Caribbean cities have urban planning departments with long-term horizons. Santiago and Buenos Aires, with 20-year planning horizons, are good examples, but Bogota and Monterrey lag with only 2-year planning horizons.27

City governments need to plan and implement policy in innovative ways to foster and encourage entrepreneurship and innovation. This includes how they tax and incentivise behaviour, physically

plan the city, treat leading entrepreneurs and plan education. City governments must not only be forward-thinking, but they must also make cities efficient by cutting red tape and bureaucracy. For example, it takes 74 days to register a property in Rio de Janeiro and Mexico City. Opening a new business can take only 27 days in Lima but 152 days in Sao Paulo. These barriers to innovation must be conquered. City governments must collaborate with other municipal, state, and national governments to achieve their goals.

3) Encouraging innovative companies

Cities should actively work to persuade innovative companies to invest there. Foreign direct investment (FDI) is an important aspect of this. Large, innovative companies can bring new skills to a city by attracting a certain type of skilled worker. Moreover, a study done for the United States shows that for every innovation job in a city, five additional non-innovation jobs are created. This multiplier effect for innovation jobs is about three times as large as that of traditional manufacturing. 28

4) Fostering innovation in firms

Cities should ensure that they have created an environment in which local and small firms can thrive. This includes making certain these businesses have access to finance, business advice, and incubators. This step is especially important for smaller cities that may not be able to attract as much FDI as larger ones. Improvements in the business environment are very important for smaller firms.

5) Supporting innovation hubs and hotbeds

Innovative cities distinguish themselves by differentiating themselves from other cities. Not

24.Programme for International Student Assessment 25.McKinsey Global Institute, Building globally Competitive Cities: The Key to Latin American Growth, August 2011. 26.Ibid. 27.Ibid. 28.Moretti, Enrico, The new geography of jobs, Houghton Mifflin Harcourt, 2012.


every city can be a combination of Hollywood, Silicon Valley, Milan and Shenzhen. Cities must create strategies to develop certain clusters and build expertise in specific areas. In Latin America and the Caribbean, Monterrey’s technological cluster is a leading example. Since 2006, the Tecnológico de Monterrey education cluster has been the top patent applicant among Mexican universities.29

The Rewards of Innovation

Cities that sow the seeds of innovation can reap rewards in terms of enhanced economic performance and job creation. Oxford Economics calculations roughly estimate the innovation premium—the additional economic dividend cities can reap by enacting innovative policies and attracting innovative firms—for cities to be 42%. Therefore, the subset of 26 Latin American and Caribbean cities could move from an average GDP per capita of US$8,825 in 2010 to US$19,651 in 2025 by implementing innovative policies.

Chart 3: The innovation premium is linked to a 42% increase of GDP per capita

Source: Oxford Economics

Moreover, this innovation premium also affects employment across the 26 cities. An innovation premium of 42% raises the average employment in 2025 from 3.2 to 4.6 million jobs across the cities. Chart 4 shows the effect by city

Chart 4: The innovation premium is linked to a significant increase in employment

Source: Oxford Economics

29. McKinsey Global Institute, Building Globally Competitive cities: The Key to Latin American Growth, August 2011

25,000.00

42%innovationPremium

20,000.00

15,000.00

10,000.00

5,000.00

2010 2011 2012 2013 2014 2015 2016 2017 2018

Year2019 2020 2021 2022 2023

Current

Innovation premium

2024 20250

2005

con

stan

t US$

20

18

16

14

12

10

8

6

4

2

0

Empl

oym

ent i

n20

25 (m

illio

ons

of jo

bs)

Employment with innovation premium in 2025Currently predicted employment in 2025

Average withinnovatin premium

Average

Buen

os

Aire

sBr

asili

aGre

ater

Bel

em

Great

er B

elo

Horizo

nte

Great

er C

uriti

ba

Great

er Fo

rtale

za

Great

er

Porto

Ale

gra

Great

er R

ecife

Great

er R

io d

e Ja

neiro

Great

er S

alva

dor

Great

er V

alpar

aiso

Great

er Sa

o Pa

ulo

Great

er

Conc

eptio

n

Great

er S

antia

goGre

ater

Med

ellin

Bogo

ta D

CGre

ater

Cal

i

Great

er

Mex

ico C

ity

Great

er G

uada

laja

ra

Great

er M

onte

rrey

Great

er Ti

juan

aGre

ater

Pue

bla

Great

er Le

on

Great

er

Areq

uipa

Great

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ujill

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Lim

a


How does innovation drive economic growth?

Not all innovations have the same effect on the economy. Through my research, I have found three models to explain the different macroeconomic effects from microeconomic innovation and disruption. Essentially, there are three different types of innovations. Each one plays a different role in development and in sustaining a robust and prosperous economy.

The first one we call “disruptive innovation.” These innovations transform products that historically were complicated and expensive into products so affordable and simple that a much larger population has access to it. An example would be Nissan, which today is trying to make a car that you can sell for US$3,000 in large portions in the world. More people will in turn buy them, and therefore the company that provide them have to hire more people to make them and sell them and so on. In electronics, the smart phone makes computing available to a much larger population and people. There are many disruptive innovations, and, in fact, in the United States literally 100 percent of all of the net jobs created in our economy are created by disruptive innovation. This kind of innovation has allowed Japan to become prosperous. Korea, Taiwan, Singapore did that same thing.

The second type of innovation makes improvements to markets, products and services. These are the innovations that we know most about; however, they don’t have much of an impact on the economy. For example, Toyota introduced its Prius hybrid car to the market. Although, it’s a wonderful innovation, every time Toyota sells a Prius it doesn’t sell a Camry. And so, this second type of innovation may be important, but they don’t create economic growth.

The third type of innovation is called “efficiency innovation,” and that is an innovation like Wal-Mart where you can make the same product at a much lower cost. That causes your economy to stay competitive, but it doesn’t create jobs. In fact, it takes jobs out.

What do you think are the basic conditions for this process of disruptive innovation? What needs to be in place to create new jobs and spur economic activity?

As a general rule, if there is a factor which is scarce in an economy, the right instinct is to husband it and deploy it strategically to maximize its productivity. Historically, capital was scarce. The rules that we taught at Harvard Business School was that when you put your

Interview with Clayton ChristensenHarvard Business School Professor & DisruptiveInnovation ExpertWednesday, October 3rd, 2012

•One of the world’s top experts on innovation and growth

• Ranked #1 in the Thinkers50, the global ranking of business leaders

• His first book, The Innovators Dilemma, received the Global Business Book Award for the best business book of the year (1997)

Keynote Speaker, Americas Competitiveness Forum, Cali, Colombia

Clayton Christensen

Shares his ideas about disruptive innovation and the enabling environment necessary to develop world-class innovation hubs in Latin America and the Caribbean.


capital into a company you want just be sure that you use it maximally so to support the maximum revenue and generate the most profitable profit per dollar employed. But today, the world is so awash in capital, its cost is almost zero. There is so much capital that people don’t even know how to deploy it. Instead, I think what is scarce today are educated people who have the skills required to work in disruptive companies. In America, skill resources are in short supply, and we are squandering the power of education. My research had taught me that education is critical. Smart policy choices must be made to ensure that it is used productively and not wasted.

We would like to see the next Google come out of Latin America or the Caribbean. Do you think that is possible?

It is definitely possible. The challenge for companies will be to deploy new technologies that can effectively compete with technologies that are already in the market. The only way that you can be successful with the new technology is if it is more performance-effective and more cost-effective than the old technology. And so, in a place like the United States where there is so much technology being used, any new technology has to be better, and that is a very high standard. For example, in order for solar electricity to get commercially viable in the United States it has to be better than the existing technology, and the existing technology for electricity is very good. But in Latin America, especially in rural areas, there are a lot of people who don’t have really good access to electricity that’s reliable. In many dimensions, not just in electricity, the available technology has been complicated and expensive. The perfect markets and the perfect customers for new technologies are those who have not historically had access to any technologies. So Latin America and the Caribbean actually hold the best customers for disruptive innovations. A lot of times the challenge is not developing the technology, it is ensuring that there is a market that will accept this new technology.

How should companies or countries go about selecting strategic sectors or competitiveness priorities?

It’s actually very hard to predict in advance what new industry is going to blossom from disruption, and government planning is rarely successful. If you look at Japan, America or Europe, you can see that the government can waste a lot of companies’ resources in the pursuit of technologies that just don’t work, the market doesn’t emerge. So my approach would be to suggest the government policy should be a watchful one, to see which new technologies emerge and then which have disruptive potential. Only at that point you can try to invest in and give incentives to other companies to build the cluster. So the challenge for the government would be to be fast, to respond rather than to predict what’s going to work and what won’t. And in almost every case the key is to help develop workers, for example, offering tax incentives to give more people incentives to get into the cluster.


Can you share with us the main features of the concept of reverse innovation?

Reverse Innovation is any innovation that is adopted first in the developing world to sell to developed countries. This is completely counterintuitive because it is perfectly logical to see why the poor man would want the rich man’s product. The rich man is driving a car the poor man wants a car, but it is not that logical to see why the rich man would want a poor man’s car, a poor man’s product; that is the assumption of reverse innovation. In the past, reverse innovations have been the rare exception to the rule, but the phenomenon is becoming ever more common, and the implications for multinationals are profound. I’m going to make an argument that reverse innovation is going to change all the industry whether it is health care, energy, transportation, manufacturing, high tech, low tech consumer products.

It is perhaps the single biggest opportunity for countries in Central, South America and the Caribbean; and the reason this is a big opportunity is that you have to innovate in these

countries to really satisfy the needs in the developed world; these innovations can actually transform countries like the United States and generate significant growth.

Can countries in Latin America and the Caribbean play a significant role in world class innovation?

My research is based on multinationals but you can take the same theory and even a small fund in Colombia, Ecuador, Peru, Chile, Argentina, can take and apply the same ideas. There are opportunities of local funds in these countries whether they are small, medium or large, to really cash in on it. Breakthrough innovation can be generated in developing countries to be adopted around the globe.

What are the roles of the public and private sector in promoting innovation?

The countries that I have studied for my research include Mexico, China, India, Brazil. I have found that the lead road is taken by the private sector. Governments have invested enough in basic

Interview with Vijay Govindarajan Professor of International Business at the Tuck School of Business at Dartmouth College

• One of the world’s leading experts on strategy and innovation

• Ranked as Number 3 Management Thinker in the World

• Winner, Best Paper Award Innovation Management 2012

Keynote Speaker, Americas Competitiveness Forum, Cali, Colombia

Discusses the concept of reverse innovation and indicates that breakthrough innovation can be generated in developing countries.Vijay Govindarajan


research. At that point, companies need to tap into their own resources and possibilities. Companies in these countries can really benefit from close collaboration with NGOs and the government. Government cannot do innovation; but if governments can create the right climate then innovation flourishes and one of the ways to do it is by creating policy changes and also investments.

Can countries in the region benefit from innovators and entrepreneurs in their Diaspora?

Absolutely, I think that is critical. Role models are important. Among the companies that I have studied in China and India, many of the innovations are unlocked by the Indians and Chinese working in the United States who are able to see the role models in the U.S. and what kind of innovations are possible using modern technologies and then they go and apply that experience in India and China. Therefore, anything can happen and diaspora population from Latin America and the Caribbean can definitely make a difference.

Can you give us 5 key recommendations for competitiveness public and private sector leaders of the Americas?

I think number one you have to identify no more than 3 sectors where you can really build competitiveness; every country may have different options. In fact I was just recently talking to the Prime Minister of India and I told him the 3 sectors he has to focus on are: energy, education and health. It may be different depending upon the country. That is number one. Number two: once you pick these 3 sectors, you need to invest in basic research that can benefit the private sector to carry on innovation. Number 3 is: Set aside some venture money, some seed capital that you can provide to start-up entrepreneurs in these sectors and the local

private sector companies and small players who cannot really get into the game; give them venture money. That is number 3. Number 4: Government itself should become a purchaser of these services. Give preference to these innovative entrepreneurs who can immediately create demand for the product or service. Finally, play to attract the talent. There are a lot of talented people who are in other countries; attract them back to your country so they can make a contribution.


• Served as Chairman of the National Competitiveness and Innovation Council in Trinidad and Tobago and the Caribbean Competitiveness Centre

• Has written numerous books and articles on culture, education and development issues, and produced documentary films

• Pro Vice-Chancellor, Planning and Development at The University of the West Indies (UWI)

• Has served the Caribbean region in areas of public policy, public and private sector governance and education

Speaker, Americas Competitiveness Forum, Cali, Colombia

Presents his perspective on creative industries and its potential to contribute in the economy of Trinidad and Tobago and the Caribbean region.

Could you explain why the creative industries are so important for Trinidad and Tobago?

Because two significant things stand out for a minister responsible for planning in the economy and indeed for the government of Trinidad and Tobago as a whole. Those two pieces of vital information are the following: One, although the Gross Domestic Product (GDP) of Trinidad and Tobago is quite significant for the size of the country which is 1.3 million people and the per capita income is quite positive comparatively in the world, the significant thing about our production base is that much of what we produce is foreign exchange dependent. In other words, we use up a lot of foreign exchange in producing what we produce whether we use it locally or export it in order to achieve our standard of living. And the second point that I wish to make is it may well be possible for Trinidad and Tobago to achieve a contribution based on the creative sectors of about 6 to 7 % of the GDP. The entire manufacturing sector for Trinidad and Tobago for the present time which is quite solid and which is a high employer outside of the energy sector only contributes about 6 % to the GDP at this time. So, it is in that framework

that creative industries are critically important of Trinidad and Tobago and the whole business of diversification is quite important for a country that has been energy dependent for almost 100 years.

Could you explain the current performance of the Caribbean creative industry in global terms?

The region as a whole maintains a deficit in terms of imports and exports of creative goods. The trade deficit increased between 2004 and 2008. However, Barbados and Trinidad and Tobago have been growing their exports. Dominican Republic is currently the largest regional exporter of the region. Also, collaboration within the region seems to be in positive direction in which this particular industry is headed and where it can bear some fruit in the export sector.

The pattern of trade of the countries is changing, whereas before a lot of the trade was directed towards the United States, a significant proportion in almost every area is shifting elsewhere and as a consequence we find that with that shift in trade we also have an increase

Interview with Dr. Bhoendradatt TewarieMinister of Planning and Sustainable DevelopmentTrinidad and Tobago

Dr. Tewarie


in the design import elements as opposed in the design of export elements therefore it is a concern.

There is an increase trade relationship with Asia plus three countries mainly China and decrease trade relationship with NAFTA countries (Canada, Mexico, United States) between 62 % to 44 % and you see the pattern developing having implications as well for the creative sector.

Trinidad and Tobago’s most dynamic export and import sectors are: publishing, design and arts and crafts. The least dynamic export sectors are: visual arts, performing arts, and new media.

What is the potential of the creative industry in Trinidad and Tobago and the Caribbean?

The creative industry has the potential to: generate employment, increase income earnings and standard of living, facilitate entrepreneurial activity, develop local innovations which are globally competitive, support other key industries such as tourism, manufacturing, support the diversification of the economy away from an oil and natural gas dependency, facilitate the formation of new trading partners and strengthening existing partnerships (e.g. increase foreign direct investment), preserve the local culture as the world becomes increasingly globalized.

The creative industry also has the potential for export, for foreign exchange earnings, for jobs and of course it is the use of talent, creativity and the imagination, all of it homegrown, and connected to the rest of the thinking and creativity of the world. I think that there is huge potential for growth in terms of South-South trade, there is huge potential for growth in terms of the changing patterns of trade for Trinidad and Tobago and certainly in terms of Europe I think there is an opportunity to be capitalized based on agreements that we have signed with Europe and the Caribbean.

What we have in Trinidad and Tobago largely is potential and raw production base and it is the gap between this raw production base and the sophistication that is required to make it work in the export sector to contribute in the GDP. That is the missing ingredient. The basic natural production base of the country and the new technologies do not connect in the way that they need in order to make a decisive difference in the sector.

We need to make more strategic use of the social media; we need to reduce dependency on public sector funds. We need to engage various stakeholders in the creative sector to help charter the wheel forward.

We had a high level expert panel for implementation of the arts, cultural and entrepreneurial projects recommended the creation of the central arts council, and specific focus of areas such as entertainment, film, media arts and heritage so that these could be properly organized as business. Also, they recommended new agencies related to other aspects of culture and the creative arts. And must significantly, they recommended a system of competitive grant funding, based on competition and secondly a venture capital fund so that private sector can become involved in business opportunities. Finally, they recommended a new cultural policy framework with supported legislation and regulate for framework to ensure the sustainability in the sector.


• World expert on materials, devices and systems for optical information processing

• Holds 12 patents on spatial light modulators, displays, and optical information processing systems

• Companion of Honour Award (Second Highest Honour awarded by the Government of Barbados) in 2003

Interim Executive Director of the Caribbean Science Foundation (CSF)

Talks on science and technology innovation in the Caribbean Region, and the potential of the Diaspora to promote economic development.

Can you please explain to us the nature of the Caribbean Science Foundation and what it does?

The primary mission of the Caribbean Science Foundation (CSF) is to assist with the diversification of the economies of the Caribbean region by harnessing science and technology for economic development, and to help raise the standard of living of our people. We are a nonprofit, nongovernmental, grass-roots organization, and we are driven by the Caribbean Diaspora. We use our connections in the Diaspora where we have lots of well-meaning people like me who want to give back to the Region. Our approach is twofold: help with STEM (science, technology, engineering and math) education reform, and with stimulating more technology-based entrepreneurship.

Education reform is sorely needed in the Region, and especially for the English speaking countries which have adopted the British system. The British have moved on, but a lot of the Caribbean countries have not. And we also, of course, would like to fund science and technology

projects in existing small enterprises on a competitive basis, since access to seed capital is the biggest hurdle today for start-up companies in the Region with good technical ideas.

What obstacles to development and opportunities do you see present in the Caribbean region?

The areas of need in the Region are pretty clear. There are energy and food security problems, transportation problems, clean water problems, agriculture and food science problems, and health care problems; then there is the high cost of telecommunications which is impeding the development of internet-based businesses and, of course again, the lack of access to low-cost capital.

Crime in the Region is also an impediment to economic development, but for CSF crime prevention is really a focus on how to use technology to help with crime prevention.

Development is something that we all talk about, and manufacturing almost doesn’t exist

Interview with Dr. Cardinal Warde Professor of Electrical Engineering at the Massachusetts Institute of Technology (MIT) & Entrepreneur

Cardinal Warde


in the Region. So opportunities abound in almost every sector; from software development to renewable energy generating systems to environmental science and engineering, to cite a few examples. I truly believe that the next “Google” can start in the Caribbean! But STEM education reform is needed to more effectively exploit these opportunities.

The CSF also wants to help support existing incubators, and there are a few within the region. This is because these incubators can be vital to providing business guidance, administrative assistance and help to entrepreneurs and early-stage companies who may just need to demonstrate a proof of concept that might later open opportunities to traditional financing. We think that that this is going to be an important function for us as we go forward and we have to find ways of funding it.

How do you deploy your organization’s resources to maximize your impact in the Caribbean region?

In the Caribbean region there is a lot of water between lots of small islands, most of which have very fragile economies. The CSF is headquartered in Barbados, and so we are appointing CSF representatives in as many Caribbean countries as possible. These are individuals volunteer to disseminate and collect information about and for the CSF. We ask them to help mobilize the youth to carry out activities related to science, technology and innovation. We also ask them to try to organize CSF’s sponsored events in their countries; of course we want them to make linkages to the politicians and the education and business communities in their countries. To the extent they can, we also ask them to assist in fundraising, and we want to hear what activities in science, technology and innovation are going on in their countries.

The CSF itself has also to keep close track of ongoing research around the world, and look at the external community and try not to reinvent the wheel; we need to tap into research that has already been done and try to make sure that our entrepreneurs know about it, and that our universities also aware. Together we must be smart in how we deploy our resources in building new companies and new technology economies.

Can you tell us about the importance of promoting science and technology education among Caribbean youth?

There are very low numbers of Caribbean students pursuing advanced degrees in science and engineering. We need train more of our youth with the skills necessary to achieve success in science and engineering at the university level and beyond. Thus, we must promote educational programs that support technology-based entrepreneurship.

In particular there should be a focus on the STEM disciplines starting as early as age eight. Additionally, we should expand business and entrepreneurship education, as well as opportunities for students to learn foreign languages and develop good communication skills. And finally, the tertiary educational systems in Region should not focus on quantity at the expense of quality. These steps are central to the development of the next generation of Caribbean leaders in science, engineering and industry


In 2010, national competitiveness councils from the United States, Brazil, Egypt, Korea, Russia, Saudi Arabia and the UAE came together to form the Global Federation of Competitiveness Councils (GFCC). The GFCC is the first international, private-sector led, organization to focus exclusively on the development of competitiveness policies.

The mission of the GFCC is to create a global network of competitiveness councils to exchange best practices and create innovative new metrics to benchmark international competitiveness. Including the original founding members, today the GFCC includes national competitiveness organizations from Australia, Canada, Chile, Colombia, Ireland, Japan, Mexico, Mongolia,

Morocco, New Zealand, Panama and United Kingdom and a much broader global network.

The GFCC held its first Annual Meeting in Washington, D.C. on December 10, 2010, to release the groundbreaking first ever Global Competitiveness Principles . These guiding priorities seek to describe and define the national competitiveness framework that every country should have in place to be competitive and prosperous.

The Global Competitiveness Principles have been ratified by competitiveness councils within the GFCC’s widespread network, were used as the basis for the Inter-American Competitiveness Network’s (RIAC) 2011 Santo

THE GLOBAL FEDERATION OF COMPETITIVENESS COUNCILS: KNITTING TOGETHER THE FUNDAMENTAL DRIVERS OF NATIONAL COMPETITIVENESS IN THE GLOBAL ECONOMY

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Domingo Consensus. The Principles, which are revised and released annually, reflect the rapidly shifting dynamics of the global economy and the changing requirements for global competitiveness.

The Principles capture the belief that the private sector, in cooperation with the public sector, can seek to both maximize profits and be an agent of positive change for the benefit of society. They highlight the need for fiscal responsibility, the investment challenges created by unsustainable budgets, and the vital role governments play in creating a level global playing field for competition. They recognize the critical nature of responsible resource development including land, rare earth minerals and non-renewable energy sources, and the need to determine the appropriate balance of each for national productivity. Also central to these guiding conventions is the importance of non-traditional measures of competitiveness such as culture, arts and community as driving factors of innovation and competitiveness around the world.

Complementary to the release of the annual Global Competitiveness Principles , in 2011 the GFCC released the inaugural set of Best Practices in Competitiveness Strategy . The report Accelerating Growth, highlighted case studies featuring the successful efforts of twelve member organizations from eleven countries. From driving infrastructure development in the Middle East, to encouraging entrepreneurship in Russia, to renewing the United States’ innovative spirit, the report represents a useful tool for developing global competitiveness initiatives to make it easier, faster, and more efficient for all nations to thrive.

Best Practices outlined in the 2011 varied widely, from Dubai’s path forward from a pearl-diving village to a global logistics hub, to the public and private sector changes Brazil embraced to

break free from the international financial crisis of 2008-2009 and pave the way for robust growth in 2011. Canada pinpointed productivity issues in its energy industry and called on the expertise of the private sector to become more productive and competitive; and, Northern Ireland is now using advanced wind turbines to meet national energy needs. Saudi Arabia and Korea facilitated paths to start and strengthen business by cutting through bureaucratic red tape and paving the way towards an innovation revolution.

Egypt’s submission highlighted a more holistic approach to national economic policies, exploring transformations to make the most of its resources and create a better world for its people by 2030. Recognizing the essential nature of benchmarking, the United States’ piece illustrates how policy can be turned into practice through the creation of a national innovation agenda and pertinent legislation, while Russia and Ireland worked to create indexes focusing on hubs of entrepreneurship hubs and improving standards of living.

The 2012 report will again highlight efforts from member organizations, and for the first time feature essays from GFCC’s global partners including RIAC, the Science and Technology in Society Forum, the World Economic Forum and the United Nations Industrial Development Organization. The report will be released at the 2012 Innovation Summit and the Annual Meeting of the GFCC to take place on November 27-29 in Dubai, UAE.

Submissions this year will showcase expanding public-private partnerships aimed at shaping and steering technology agendas in key Brazilian industries; the skills-based policies actively boosting Australia’s workforce with direct and positive effects on business innovation; and Japan’s innovative industry partnership, developed in the wake of the devastating earthquake and tsunami of March 2011, using

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vehicle data tracking as a measurement for available escape routes, emergency response, and recovery efforts.

The GFCC recognizes that the fundamental drivers of national competitiveness are being knitted together in networks that now underpin global economic growth. Innovation, sustainability and resilience –once the foundations for national competitiveness advantage – are now global platforms for prosperity. Instituting strong national policies and building regional consensus are important for furthering a nation’s competitiveness, but they are not enough.

Acting globally is now a prerequisite to economic competitiveness nationally. Through the Global Competitiveness Principles and the report on Best Practices in Competitiveness Strategy , the GFCC is bringing together organizations to create a rising economic and competitiveness tide that will lift all boats.

About the Author

The Global Federation of Competitiveness Councils (GFCC) is a network of over 30 competitiveness councils from around the world. For more information on the GFCC’s work, the proprietary initiatives and IP protected materials of the GFCC mentioned in the article, please contact Mr. Bates, at [email protected]

William Bates

Executive Director of the Global Federation of Competitiveness Councils (GFCC) Chief of Staff of the U.S. Council on Competitiveness

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According to INSEAD and WIPO’s Global Innovation Index 2012, the Latin America and Caribbean region ranks ahead of only Central and Southern Asia and Sub-Saharan Africa. Two categories where it is particularly far behind are “knowledge and technology outputs” and “human capital and research.” The former includes, among other factors, resident patent applications and scientific and technical journal publications, while the latter covers expenditures on research and development and quality of scientific research institutions along with additional measurements.

This spells trouble for Latin America and the Caribbean in an increasingly knowledge-based international economy. The lack of public policy on innovation and private sector reliance on foreign technology stunt the region’s growth. One need only look at patent statistics to understand the story. For example, out of the 14,055 patent applications the Mexican Institute for Industrial Property (IMPI) received in 2011, only 1,065 (7.6%) came from Mexicans. The United States accounted for over five times more (6,182 or 44.0%), and Germany totaled 1,252 (8.9%).

But the potential is there. Intellectual property rights (IPRs) can help Latin American and Caribbean countries capture and commercialize

local creations and inventions and ensure the dissemination of knowledge. With nearly 25 years of experience leading national patent offices between the two of us, we present six actions centered on IPRs that the region can take to boost competitiveness.

• Make IPRs a Government-wide Priority:

IPRs are increasingly important for economic development, yet a lack of interest in and understanding of them perpetuates. Most people do not know the difference between a patent and a trademark or see the significance in protecting them. More needs to be done to educate the public, and particular attention should be paid to policymakers and government leaders. Vocal IPR advocates are needed across the spectrum of government agencies, from departments of education to trade to science and technology to foreign affairs. Otherwise key decision-makers will go on paying lip service to the economic value of innovation without carrying out policies—such as investing in research and development—necessary to promote it.

• Modernize National IP Offices:

IP offices need to reflect the sophistication of the subject matter they deal with everyday.

USING INTELLECTUAL PROPERTY RIGHTS TO INCREASE COMPETITIVENESS


Up-to-date information and communication technology systems and electronic databases are necessary to handle the large amounts of information involved in administering national patent and trademark systems. Just as important are competent personnel to manage operations and examine applications. Efficiency and effectiveness builds trust with customers and encourages use of the IP system. As more people use the IP system, the IP office generates more revenue, giving policymakers further reason to support these efforts.

• Seize Existing Opportunities:

Although Latin America and the Caribbean trail most regions in the Global Innovation Index, this is not because the region lacks creative and innovative people. Every country has talented researchers, artists, and entrepreneurs. The key is to identify, protect, and promote these intellectual assets. We have seen the importance of this process in some of IIPI’s recent work in cooperation with the United States Patent and Trademark Office (USPTO). In the Philippines, we reviewed science and engineering publications from nine universities and research institutions over a ten-year period and determined that 27% of them contained potentially patentable subject matter. Yet none of the researchers or institutions filed patent applications for these potential inventions. IIPI, USPTO, and OAS also held a series of workshops on IP concepts and business skills for indigenous artists and craftspeople from Latin American countries where the potential economic opportunities for these creators became clear. By using IPRs such trade or collective marks, for instance, a traditional artist or indigenous community can help market their goods, protect themselves from knockoffs, and preserve their cultural heritage.

• Ask for Help:

Developing an effective IPR system—and getting people to use it—is not easy. Fortunately, there are a number of governments, such as the United States, and international organizations, such as the Inter-American Development Bank, that have access to resources and expertise for international IPR-based technical assistance and capacity-building programs such as those conducted by IIPI. Currently, the funding and frequency of these activities are limited (and often focused on enforcement). This is starting to change, however, as higher-income countries realize the importance of cultivating innovation economies around the world. Latin American and Caribbean governments and IPR stakeholders should not be shy about expressing their desire for collaboration.

• Foster Collaboration between Industry and Research: In many cases, companies in Latin American and the Caribbean have access to excellent local institutions and researchers. Yet they prefer to buy or license foreign technology. They have little faith that their fellow citizens can provide solutions to their problems. Although the region’s national governments tend to underfund research and development activities, each country possesses expertise in areas particularly important to it (e.g., copper in Chile, hydroelectric power in Colombia) that businesses can take advantage of. The private sector can benefit by reaching out to universities (and vice versa) to highlight the need for innovations in particular fields or to address specific issues. With this line of communication open, researchers have a better idea how to steer their research to serve the needs of industry. These relationships will also help universities and research institutions know whom to contact when they produce inventions that could be commercialized.


• Teach the Teachers (and Students and Administrators):

Universities are centers of knowledge and experimentation. But without IPR awareness among students, faculty, and administrators, and institutional policies that support the identification, protection, and commercialization of inventions or original works, these bodies fail to live up to their potential. Researchers need to have at least a basic understanding of IPRs since they themselves are in the best position to determine whether subject matter in their field is patentable. Ideally, their knowledge would also extend to the patent application process. Universities should develop institutional IP policies to guide the protection, ownership, and use of the creations and inventions they generate. Patenting should be rewarded to create professional incentives for commercialization. (For example, in the United States, patenting activities may carry weight in tenure decisions and are often seen as a source of prestige). Universities must also provide proper resources—funding, space, personnel—for IP management and technology commercialization activities.

Following these suggestions will not lead to overnight success. Changing attitudes and building capacity requires patience and dedication. The earlier Latin America and the Caribbean takes IPRs seriously, however, the sooner they will see the economic benefits that come with their protection.

About the authors: Hon. Bruce A. Lehman is the Chairman and President of IIPI. He served as Assistant Secretary of Commerce and U.S. Commissioner of Patents and Trademarks under President Clinton. Mr. Jorge H. Amigo Castañeda is IIPI’s Vice-Chairman. He served as Director-General of the Mexican Institute for Industrial Property (IMPI) from 1994-2011.

About IIPI: IIPI is a nonprofit international development organization devoted to helping developing countries use IPRs to create jobs and increase competitiveness. For more information visit iipi.org.

Bruce A. Lehman Jorge Amigo

The next section describes experiences and relevant initiatives in the Americas on the 10 General Competitiveness Principles.

The 10 General Competitiveness Principles were approved by the Competitiveness and Innovation Authorities and Councils in 2011.

Promote high-quality, pertinent and timely education as a key element to enhance the competitiveness, good values and attitudes, and the development of our countries

Foster the establishment of effective institutions responsible for promoting competitiveness with direct private sector involvement and other relevant actors, including existing entities, and Public-Private Partnerships to address short and long-term competitiveness issues

Promote a simpler, more stable and efficient institutional and regulatory framework for business and investment, by increasing transparency in government, the rule of law, promoting competition in our markets, and ethical conduct in the interactions between the public and private sector

Prioritize the development of human capital and promote continuous on-the-job training and the acquisition of new competencies to develop world-class skills for the human capital and productivity of our countries

EXPERIENCES

Progress on the10 General CompetitivenessPrinciples

AMERICASIN THE

Foster the development of a modern, efficient, well-maintained infrastructure –between and within countries- and foster the rapid adoption of new technologies by economies, including information technology and communications (ITCs)

Position innovation and high impact entrepreneurship as a determining factor for competitiveness, through greater public and private investment in research and development (R&D), the interaction with academia, and the adoption of innovation-enabling policies and strategies, including the protection of the rights of intellectual property holders in the framework of our development policies

Improve access to capital for economic actors, especially MSMEs and entrepreneurs, and promote public-private mechanisms to increase financial inclusion

Foster equity, inclusion, social entrepreneurship, the adoption and application of corporate social responsibility principles, sustainability, shared value and gender equity as fundamental elements to enhance the productivity and competitiveness of our region

Promote trade and integration, trade liberalization, to diversify our economies with high value-added and quality products and services, fostering the internationalization and participation in global value chains, and, improve the competitiveness and productivity of industry, giving special priority to our MSMEs

Promote energy efficiency and development in the context of our efforts to foster environmental, social and economic sustainability, including the vision to become low carbon economies

The experiences contained in this section are closely tied to the countries’ priorities in their public policy agendas. This sharing of them with other members of the RIAC gives visibility to the efforts undertaken and creates an opportunity to share knowledge and transfer skills with the goal of strengthening competitiveness in the region. The experiences mentioned are the following:

Countries

BARBADOS 1. National Sustainable Energy Policy- Principle 10 CHILE 1. Start-Up Chile- Principle 6

COLOMBIA 1.“Buy Colombian” Program- Principle 2 2.“Formalizing Colombia”- Principle 3 3. Good Governance, Ethics, and Sustainability for the Public and Private Sectors- Principle 3 4. Construction, Launching, and Operation of the “Valle del Pacífico” Events Center- Principle 5 5. “Start-UP Fund” - Principio 6 6. iNNpulsa Colombia- Principle 6 7. Productive Transformation Program- Principle 9

COSTA RICA 1. Competitiveness Model of the Brunca Region- Principle 2 2. Digital Review of Construction Plans- Principle 2 3. National Procedures Catalogue- Principle 2 4. “Start a Business”- Principle 3 5. National SME Fund Promotion Program- Principle 6 6. Financing Public Transportation Micro-Enterprises (Taxis)- Principle 7

ECUADOR 1. Design of the Production, Trade, and Investment Code- Principle 3 2. “Innovaecuador”- Principle 6 3. “EmprendEcuador”- Principle 6 EL SALVADOR 1.“MiEmpresa” – Online Procedures and Services- Principle 2 2. Productive Development Fund FONDEPRO- Principle 2 3. Sectoral Cells Program- Principle 2 4. Policy of Innovation, Science, and Technology- Principle 2 5. Business Innovation Award- Principle

UNITED STATES 1. Business Ethics in Sectors of Export Interest to APEC Small and Medium-Sized Enterprises- Principle 3 2. Global Center for Medical Innovation– Principle 6 3. Central American Border Management Reform- Principle 9

GUATEMALA 1.Institutionalization of Competitiveness Tables– Principle 2

JAMAICA 1. Literacy Program- Principle 1 2. Improving Competitiveness Program- Principle 2 3. Improving Competitiveness: Business Climate Reform- Principle 3 4. National ISO Quality Management System Certification Project-Principle 3

MEXICO 1. Public-Private Partnerships for Road Development in Mexico- Principle 2 2. Zero-Based Regulation and Regulatory Reform- Principle 3 3. National Market Leaders Program- Principle 9 4. “Mexico Ventures”- Principle 6

PANAMA 1. Digital Colleges - SENACYT- Principle 1 2. National Competitiveness Forum- Principle 2 3. Georgia Tech Panama Logistics Innovation & Research Center- Principle 4 4. “Infoplazas”- Principle 5

PERU 1. The 2012-2013 Competitiveness Agenda as a Tool to Promote Competitiveness Reforms- Principle 2 2. Science and Technology Program FINCYT (Financing for Innovation, Science and Technology)- Principle 6 DOMINICAN REPUBLIC 1. Second Congress of Dominican Industry- Principle 2 2.“More SME” Project- Principle 3 3. Quality to Compete Program- Principle 9

SURINAM 1. Task Force Education Innovation- Principle 1 2. Preparation and Start-up of project Framework for Private Sector Development- Principle 2 TRINIDAD Y TOBAGO 1. Establishment of the Economic Development Board and Council for Competitiveness and Innovation- Principle 2 2. Idea 2 Innovation Competition- Principle 6 URUGUAY 1. Support for Priority Technical Tertiary Education Programs- Principle 4 2. Traceability in the Beef Cattle Sector: Information System for the Beef Cattle Industry- Principle 5 3. Internationalizations of the Productive Specialization

Institutions

2. Competitive Cities Program

1. Compete Caribbean Program

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BARBADOSEXPERIENCES

1 Creating Changes and Competitiveness Based on Solar Energy

Experience: National Sustainable Energy PolicyInstitution: Division of Energy and Telecommunications, Office of the Prime MinisterDate: 2012Webpage: http://www.energy.gov.bbRelated principle: 10- Promote energy efficiency and development

The new National Sustainable Energy Policy will provide a framework within which initiatives will be pursued related to the development of sustainable energy in the country, including a new Sustainable Energy Framework and a Public Sector Energy Conservation Program

This comprehensive program will establish the appropriate incentives to create significant energy savings and contribute to reduce oil imports and thus free funds that may be used for other purposes

Use of renewable energies, energy efficiency and energy conservation to mitigate the high price of oil

Development of solar water heaters, at a higher level in terms of availability and capacity than currently exists in the Caribbean region, and one of the highest in the world (fifth based on amount per capita)

By the NumbersMore than 40,000 solar water heaters installed in private and commercial buildings in Barbados5th highest penetration of solar water heaters in the world, of over 45%Savings of $12.95 million dollars in energy costs

Collaboration Opportunities Supply: Expert visits to present the programDemand: The Government of Barbados seeks to replicate this experience in other areas in which solar energy can make a difference

http://www.iadb.org/mobile/news/detail.cfm?language=English&id=8859

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CHILEEXPERIENCES

1 Creation in Chile of a leading innovation hub in Latin America

The Start Up Program has placed Chile on the map of innovation at the global level. Entrepreneurs are creating jobs and opportunities that did not exist before

A US $40 thousand grant and work visa is offered to any entrepreneur from anywhere in the world who decides to go to Chile and develop his or her project for six months

Mentoring networks and technical assistance are offered to beneficiary entrepreneurs

At the end of the programme, 25% of all entrepreneurs decide to stay in Chile

Lessons learned: It is important to temper entrepreneur expectations, and in Start-Up Chile much experience has been gained in this area

By The Numbers+ 3,000 applications received from 70 countries+ 400 beneficiary projects from 37 countries+ 9,000 persons have benefitted from involvement in social impact activities that entrepreneurs put in place as part of their participation in the program

Collaboration Opportunities Supply: A program specialist visit to another countryDemand: Successful ways to encourage entrepreneurs who have been sponsored make a social commitment

Experience: Start Up ChileInstitution: Production Development Corporation (CORFO), Ministry of the Economy, ChileDate: 2010 – presentWebpage: www.startupchile.orgRelated principle: 6 – Position innovation and high impact entrepreneurship


COLOMBIAEXPERIENCES

1 Program Strengthens Micro and Small Enterprises in the Internal Market and Fosters their Entry into International Markets

Experience: “Buy Colombian” ProgramInstitution: Ministry of Commerce, Industry, and TourismDate: June 2011 – presentWebpage: www.mincomercio.gov.co www.yocomprocolombiano.comRelated principle: 2 – Foster the establishment of effective institutions responsible for promoting competiveness

The “Buy Colombian (Compre Colombiano, in Spanish)” Program creates partnerships between Micro and Small Enterprises (MSEs) that sell, and the Medium and Large Enterprises that buy to take full advantage of the demand for goods and services of 46 million residents. In Colombia MSEs represent 96.4% of the country’s total business fabric

Activities include studies, training workshops, business conferences, commercial events in which MSEs offer their goods and services to medium and large businesses

Lesson learned: team work, management flexibility, and the importance of follow-up and evaluation tasks

By The Numbers27 “Buy Colombian” events have been held2810 businesses have participated in the program, through which they have been able to do business worth more than 72 billion Colombian pesos Collaboration Opportunities Supply: Technical assistance, technical tours, and expert participationDemand: Similar and complementary experiences, in particular on overcoming technological gaps, sectoral innovation, regulations, and product certification


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“Formalizing Colombia” Seeks to Reduce Lack of Business Formality to Promote Competitiveness

Colombian American Chamber of Commerce Drives Growth and Development in the District of Barranquilla and the Colombian Caribbean Region

formalization conferences, sectoral projects, and information on the benefits of formalization and services available from public and private entities to formal businesses, such as: training, non-reimbursable resources, and access to credit

By The Numbers222,382 businesses have become formalized as a result of the Formalization Policy18,687 informal entrepreneurs have gained awareness through the Brigades for Formalization, and of them 6,627 have become formalized

Collaboration Opportunities Supply: Conduct studies and offer support in the design and adaptation of methodologies and programsDemand: Similar experiences, public policies and strategies to reduce the size of the informal economy

To ensure that the District of Barranquilla and the Colombian Caribbean Region become more competitive and a strategic point for investments, the following actions are being taken: providing information on corporate governance to heads of public and private organizations; training on ways to achieve Good Governance, Ethics, and Sustainability; promoting relations between the Barranquilla District Mayor’s Office and the Embassy and government of the United States to spur collaboration and investment; and the development of a program to train entrepreneurs on the contents and implementation of the FTA

The District of Barranquilla has increased its total income (more than 660 billion in 2007 compared to more than 1.3 trillion Colombian pesos in 2010), and

has improved on the national scale with respect to fiscal performance, from 286 (2007) to 25 (2010) 135 officials of the District Mayor’s Office of Barranquilla, 40 executives, and 30 business leaders have received training in the Business Management certified course on Good Governance, Ethics, and Sustainability

Collaboration Opportunities Supply: Consultancy and technical assistance Demand: Similar experiences, in particular in the area of Good Governance and Ethics. We are Interested in creating partnerships with business and educational entities that could endorse the program and connect to it

Experience: Formalizing ColombiaInstitution: Ministry of Labor and TreasuryDate: August 2010 – Present Webpage: www.colombiaseformaliza.comRelated principle: 3-Promoter a simpler, more stable and efficient institutional and regulatory framework

Experience: Good Governance, Ethics, and Sustainability for the Public and Private SectorsInstitution: AmCham Barranquilla – Colombian American Chamber of CommerceDate: OngoingWebpage: www.amchambaq.comRelated principle: 3-Promoter a simpler, more stable and efficient institutional and regulatory framework

Since the implementation of Law 1429 of 2010 until August 2012, 222,382 businesses have become formalized as a result of the Formalization Policy

The activities that predominate are personalized guidance in the process of formalization, workshops on the benefits of formalization, business

The success of the partnership with the District Administration of Barranquilla has led to the program being incorporated among the activities of the District’s Development Plan, through the Special Projects Administration, with whom work is being conducted on a plan of action for the next three years


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“Valle del Pacífico” Events Center Will Contribute to the Country’s Development

“Fondo Emprender” “Start-UP Fund”

are: hotels, transportation, restaurants, trade, culture, recreation, services and industry

The adopted financing scheme involved high participation by institutions, businesses, unions, academia, and individuals, from both the public and private sectors. It was important to create a sense of ownership

By The Numbers1,800,000 visitors 520 events held7% growth in direct income obtained by the Valle del Cauca Region (2010-2011)

Collaboration Opportunities Supply: Knowledge sharing and provide technical assistance for the creation of similar projectsDemand: Answers to how to achieve the decided participation of local governments in this type of project, how to make visible the impact on regional development, what strategies to use so that the beneficiary sectors and businesses contribute to the sustainability of the project

The seed capital modality consists in the waiving or not waiving of resources based on compliance with business management indicators. This has originated a greater commitment on the part of entrepreneurs and a higher rate of survival among businesses created with financial support from “Fondo Emprender”

By The Numbers3,308 projects approved12,555 jobs achieved in the first year$173,999,728,724 Colombian pesos invested

Collaboration Opportunities Supply: Sharing of information and providing advice to create a similar fundDemand: Financial services experiences for entrepreneurs, the creation of a credit system and financing alternatives for survival ventures

Experience: Construction, launching, and operation of the “Valle del Pacífico” Events CenterInstitution: Cali Chamber of CommerceDate: Before 2007 – January 2010: full operationWebpage: www.cevp.com.co/Related principle: 5– Foster the development of a modern, efficient, welt-maintained infrastructure

Experience: “Start-up” FundInstitution: National Learning Service - SENADate: OngoingWebpage: www.fondoemprender.comRelated principle: 6 - Position innovation and high impact entrepreneurship

The center has contributed to the consolidation of 51,867 jobs related to the business tourism chain and the improvement of its quality. Today Cali is the third most important tourism destination in Colombia The Center has a great economic impact due to the multiplying effects it generates through productive chain links related to this activity. Associated sectors

“Star-up Fund (Fondo Emprender, in Spanish)” is the largest seed capital fund in Colombia and Latin America in terms of available financial resources, becoming the principal business alternative for citizens who cannot gain access to other sources of financial assistance when starting a business


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iNNpulsa Colombia Helps Modernize Micro, Small, and Medium Enterprises

Productive Transformation Program Drives Competitiveness among Businesses and Sectors

commercially and a special line of credit is open from iNNpulsa and Bancóldex to raise business innovation by some 60 billion Colombian pesos.Non-reimbursable cofinancing resources have been assigned for innovation and support for the modernization of micro, small, and medium enterprises in 36 projects, of more than 8.5 billion Colombian pesos

Collaboration Opportunities Supply: Sharing of knowledge and used methodologiesDemand: Would be interested in getting to know similar experiences. In particular the experience of the State of Nuevo León, Mexico, and the experiences of subnational governments in Brazil, and the national innovation system of Canada

immediate. Before they took up to two months to be issued and thus delayed the launching of new products and their access by the consumer

Strategies have been created to counteract unlawful activity, the costs of energy, lack of formality, and unnecessary procedures

The life of the free sale certificate was extended from 1 to 10 years, thus facilitating exports

By The Numbers8.2% was the growth of exports from PTP export goods sectors (2011-2012)4.5% was the growth in the production of manufacturing sectors that work with the PTP (January – July 2012) Collaboration Opportunities Supply: Sharing the experience in any type of modalityDemand: Better practices in policies related to education, innovation, technology, sustainability, and regulatory affairs

Experience: iNNpulsa Colombia-Development and Innovation Unit/MSME Modernization and Innovation Fund Institution: Bancoldex – Ministry of Commerce, Industry and TourismDate: February 16, 2012 – present Webpage: www.innpulsacolombia.comRelated principle: 6 – Position innovation and high impact entrepreneurship

Experience: Productive Transformation ProgramInstitution: Ministry of Commerce, Industry, and TourismDate: August 2008 – present Webpage: www.ptp.com.coRelated principle: 9–Promote trade and integration, trade liberalization, to diversify our economies

A permanent dialogue with the business sector has begun and regional networks have been formed to work on the strengthening of clusters with emphasis on innovation, a process in which 20 Chambers of Commerce participate in 16 of the country’s departments

There are open calls to receive seed capital for the development of a business idea validated

The Productive Transformation Program (PTP) organizes macro business conferences, creates portfolios that show Colombia as a producer of sustainable goods and services, and promotes bilingualism, among other things

The PTP helped make it possible for Mandatory Health Notifications for cosmetics and personal hygiene to be


COSTA RICAEXPERIENCES

1 Competitiveness Model Drives Development in the Brunca Region

Experience: Competitiveness Model for the Brunca RegionInstitution: Costa Rican Ministry of the Economy, Industry and Commerce, and the United Nations Joint Programme (UN – Habitat, FAO, UNDP, UNOID, IOM, and ILO)Date: : June 2011 – presentRelated principle: 10–Promote energy efficiency and development

The development and implementation of a competitiveness model for the Brunca Region arises from the need to strengthen the development of a region whose economic and social indicators are lagging behind those of the rest of the country. This experience has helped to replicate the model in other regions of the country

A specific agenda is used for business development, on issues such as simplification of procedures; integration of SMEs into the local or international market; Value Added increase program; creation of business models for the tourism, commerce, and agro-industry sectors

The Brunca Region has a distinctive regional hallmark that is important for tourism and trade

Lesson learned: it is important to urge regional leaders to stay involved in the whole process and issue recommendations

Collaboration Opportunities Supply: Information exchange, videoconferences, workshops Demand: Experiences on alternative mechanisms to promote local development, value chain development, the creation and implementation of business models and strategies to ensure the sustainability of actions


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Procedures Portal for Construction Promotes Competitiveness and Productivity within the Sector

National Procedures Catalogue Will Contribute to an Efficient, Competitive, and Sustainable State

in the areas of Engineering and Architecture may go online to have the plans for all their construction projects reviewed. The review process has been reduced from 90 days to 30 days for high and medium risk cases, and from 51 days to 15 days for low health- and environment-risk housing and buildings. As of May 2012, more than 9411 requests had been processed

Best practices include dialogue between all stakeholders and private sector rapprochement

Collaboration Opportunities Supply: Share the experience and offer remote or in-person support (through prior coordination)

system, among a total of 60 institutions, classified into ministries, cities, autonomous and semiautonomous institutions, public enterprises, and others (August 14, 2012)

The platform used for the implementation of the Catalogue is easy to use. It only requires a computer with Internet access, and it does not require the installation of special software

The National Procedures Catalogue was created using as a reference the Republic of Colombia’s Official Procedures Information System or SUIT

Collaboration Opportunities Supply: Assistance, remote or in-person support Demand: Knowledge on regulatory improvement and simplification of procedures, particularly methodologies for estimating standard costs for regulations and impact assessments

Experience: Digital Review of Construction Plans Institution: Ministry of the Economy, Industry and Commerce of Costa RicaDate: September 2011 – present Webpage: www.tramitesconstruccion.go.cr/index.html https://apc.cfia.or.cr/apc/webF_Login.aspxRelated principle: 2–Foster the establishment of effective institutions responsible for promoting competiveness

Experience: National Procedures CatalogueInstitution: Ministry of the Economy, Industry and Commerce, Costa RicaDate: June 2009 – presentWebpage: http://www.meic.go.cr/Related principle: 2 -Foster the establishment of effective institutions responsible for promoting competiveness

The “Digital Review of Construction Plans” project offers information to conduct procedures for the country’s construction sector; establishes a procedure for electronic review of construction plans; defines areas of competence among institutions; and minimizes and regulates processing times

By using the technological platform, professionals

Costa Rica’s National Procedures Catalogue provides citizens with official information to carry out procedures in any of the country’s Public Administration agencies or bodies. It reduces and controls processing times for transactions, brings legal protection and compliance with regulations

There is a total of 2511 procedures included in the


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5

“Start a Business” Website Seeks to Benefit Business Climate and Promote Entrepreneurship

National Fund for SMEs Drives Business Innovation

The Website makes it possible to consult procedures, check the status of paperwork, submit an application to register a new corporation in the National Registry, and authorizations for the legalization of digital books

Start a Business is a software customized for the Costa Rican case, yet it has the potential to be replicated in other places, taking into account the reality of each country

The time it takes to register a new corporation has been reduced from 20 or more days to less than 5 days

By The Numbers30 thousand books legalized145 notaries registered in the platform100 companies registered 100% digitally

Collaboration Opportunities Supply: Sharing of experiences and providing remote or in-person assistance (through prior coordination)Demand: Experiences on the simplification of procedures so that businesses may operate; initiatives that promote foreign investment and domestic entrepreneurship emprendimiento nacional

Through the use of non-reimbursable funds from the National Fund Promotion Program (PROPYME), Costa Rican SMEs have renewed and strengthened their productive processes, and at the same time have established effective partnerships between research centers and SMEs

The principal achievement has been the inter-institutional cohesion and strengthening that is being shaped little by little into a National System of Innovation with representation from all of the country’s public, private, and academic sectors

Lessons learned: The importance of promoting the business sector, make use of responsive mechanisms to access funds, and ensure a strong and well-articulated inter-institutional coordination

By The Numbers198 projects approved by PROPYME (2003 and 2012)3.4 million dollars (2003 and 2012)

Collaboration Opportunities Supply: The sharing of this experience and comparing successful experiences and lessons learned with other countries would be the main exchange that this project could generateDemand: The issues of interest to learn from other RIAC members include reimbursable and non-reimbursable SME funds, seed capital funds, incubation models, export consortia, and associative models

Experience: “Start a Business”Institution: Technical Secretariat, Digital Government, Ministry of the Economy, Industry and Commerce, Costa RicaDate: February 2012 – present Webpage: www.crearempresa.go.cr Related principle: 3– Promoter a simpler, more stable and efficient institutional and regulatory framework

Experience: National SME Fund Promotion Program Institution: Ministry of the Economy, Industry, and Commerce, Costa RicaDate: May 2002 – August 2012Webpage: www.meic.go.crRelated principle: 6 –Position innovation and high impact entrepreneurship

“Start a Business (CrearEmpresa, in Spanish)” is a Website that allows the user to complete paperwork from a single window, facilitating the creation and launching of new businesses in Costa Rica

The program’s objective is to improve the management potential and competitiveness of small and medium enterprises in Costa Rica and clusters, by providing support to projects of innovation and technological development


6 Helping Taxi Drivers Access Credit, Training, and Technical Assistance

total. Those who acquire hybrid vehicles or vehicles with low carbon emissions will be rewarded

The National Learning Institute (INA) will help support the training of taxi drivers so they may learn English and adequate customer service skills to have a positive impact on tourism

Collaboration Opportunities Supply: Videoconferences to share lessons learnedDemand: Experiences of projects that assist microentrepreneurs, women, the disabled, and have a low impact on the environment

Experience: Financing Public Transportation Microenterprises (taxis)Institution: Banking System for Development (SBD), Costa RicaDate: The development process began in September 2012Related principle: 7 – Improve access to capital for economic actors

The brings banking access to taxi drivers so they may renew their vehicles and thus meet the requirements of Executive Order No. 32661, which establishes that the age of units under use for public transportation may not exceed 15 years after the date of manufacturing

It is hoped that with this project, some 500 taxis will be renewed every year of the 13,500 that exist in


ECUADOREXPERIENCES

1 New Code Seeks to Regulate Productive Process to Improve National Competitiveness

Experience: Design of the Production, Commerce, and Investment CodeInstitution: Ministry of Coordination of Production, Employment, and Competitiveness, EcuadorDate: : Design of the law: August to December 2010; Design of regulation: January to April 2011Webpage: www.produccion.gob.ecRelated principle: 3 - Promoter a simpler, more stable and efficient institutional and regulatory framework

The objective of the Organic Code of Production, Commerce and Investment (COPCI) is to regulate the productive process in the stages of production, distribution, exchange, commerce, consumption, managing externalities and productive investments, among others

With the new Production, Commerce and Investment Code, a clear and centralized legal framework has been defined to incentivize value-added production, increase productivity, attract greater investment to the country and promote business development

The COPCI is a legal mechanism that provides security, defines an official framework, and issues a clear message of support for production and private investment

Collaboration Opportunities Supply: Knowledge sharing, technical tours, videoconferences Demand: Experiences of other countries on regulation to promote production, commerce, and investment in Chile, Peru, Colombia, and Costa Rica


2 “Innovate Ecuador” Helps Invest in Innovation and Creates Business Competitiveness

The project supports the incubation phase of projects that strengthen micro, small, and medium enterprises, partnerships and entrepreneurs to promote quality employment, productive national diversification, and a sustainable social and economic system

“Innovaecuador” is a public instrument that co-finances productive innovation, and an initiative in which the public and private sectors are closely tied to promote innovation

The intention is to promote innovation at the national and local levels, giving special attention to 14 priority sectors on the productive transformation agenda

“InnovaEcuador” has two large components: “Innovabusiness” (Innovaempresa, in spanish) and “Innovaknowledge” (Innovaconocimiento, in Spanish)

The innovation ecosystem is being strengthened by the increasing interaction between strategic partners in academia, and in the private and public sectors

By The NumbersTo date, Innovaecuador has supported 3864 companies indirectly, 31 companies directly through cofinancing mechanisms; has successfully pushed 14 new products and services, and produced 2 practical studies with special emphasis on the productive sectors

Collaboration Opportunities Supply: Sharing the experience to create a network in the region in which lessons learned may be shared by all in the use of similar methodologies Demand: To receive information and compare experiences related to technological transfer instruments, technology commercialization models, intangibles valorization, risk analysis methodologies, and impact evaluation methodologies

Experience: “Innovate Ecuador” Institution: Ministry of Coordination of Production, Employment, and Competitiveness Date: 2010 to December 2012Webpage: www.innovaecuador.gob.ecRelated principle: 6–Position innovation and high impact entrepreneurship

The objective of “InnovaEcuador” is to create greater business competitiveness by promoting the development of knowledge and technologies that allow the creation of new products, processes, and commercialization mechanisms


3 “EmprendEcuador” Contributes to the Development of the Country’s Productive Diversification

The initiative’s principal objective is to create a National Support System for Entrepreneurship, made up of public and private entities, that provides citizens with information services, project validation, and capital for dynamic ventures

Lines of direct support for entrepreneurs are granting seed capital so they may build their business plans and product prototypes, training, and networks of contacts so they may promote their projects and ideas

“EmprendEcuador” has become a good practice, and that is why the State decided to create the Entrepreneurship Institute through which entrepreneurs may receive institutionalized and permanent attention The project has adopted good practices from Chile, Singapore, and Uruguay

By The Numbers6681 ideas registered on the portal emprendecuador.ec274 proposals received through the open window for the evaluation of investors at www.emprendecuador.ec250 business plans created14 local development agencies strengthened to promote productive development

Collaboration Opportunities Supply: To participate in an exchange exerciseDemand: Knowledge on how to create additional tools to implement the policy of entrepreneurship. How to create deal flow (commercialization and financing) of projects focused on dynamic entrepreneurship

Experience: “EmprendEcuador”Institution: Ministry of Coordination of Production, Employment, and Competitiveness - MCPEC Date: Design from September 2009 to December 2010; implementation from August 2010 to December 2012Webpage: www.emprendecuador.ecRelated principle: 6–Position innovation and high impact entrepreneurship

“EmprendEcuador” arises as an alternate mechanism to support the productive diversification of the country, and seeks to generate dynamic ventures in coordination with local governments


EL SALVADOREXPERIENCES

1 Interactive Platform Facilitates Procedures and Services to Benefit Micro, Small, and Medium Enterprises

Experience: MiEmpresa – Online procedures and services Institution: Ministry of the Economy, El SalvadorDate: : June 2011 – presentWebpage: www.Miempresa.gob.sv Related principle: 2-Foster the establishment of effective institutions responsible for promoting competiveness

The information platform - www.Miempresa.gov.sv - facilitates business procedures to start, operate, and close a business. It also offers a complete catalogue of available public and private programs and services on opportunities of business, credit, training, technical assistance, and support for commercialization, among others

Through 17 customer service offices at the national level, direct consultation is provided to entrepreneurs, thus helping them save time and unnecessary costs. The platform itself simplifies processes, limits procedures and reduces response times. As of May 16, 2012, some 6,394 visits have been registered

Private medical insurance services were created for the individual business owner of a micro or small enterprise

Collaboration Opportunities Supply: Information sharing, expert visits, videoconferences, workshopsDemand: Experiences involving the simplification of procedures, virtual windows and dissemination programs


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Productive Development Fund Supports Businesses through a Non-reimbursable Cofinancing Mechanism

Sectoral Cells Program Promotes a Favorable Environment for Business Innovation and Technological Development

(MSMEs) so they may improve the quality of their products and processes, innovation, increasing the creation of value added, drive productive chain links, increase national production and exports

During the last four years it has been proven that the level of businesses supported by the Fund is superior to that of businesses in the country as a whole

The FONDEPRO experience has been used for the creation of a similar Fund in Guatemala

By The Numbers$10.2 million granted as co-financing for 1245 projects presented by 700 businesses (in 10 years)$ 6.6 million was the increase in sales abroad achieved by businesses (2010-2011)

93% of businesses supported by the Fund survived in 2010

Collaboration Opportunities Supply: : Sharing of information, technical human resources, technical meetings, visits to businesses, signing of South-South cooperation agreements Demand: Good practices from (i) the Development Corporation (CORFO) of Chile to strengthen management of the Fund; (ii) ANII of Uruguay to position and create a greater impact with a line of innovation and dynamic ventures; and (iii) from Colombia on the success of support at the sectoral and territorial levels to expand the Fund’s potential

of the private sector in the definition of government priorities

Each cell has a program the purpose of which is to identify the particular needs of economic sectors. Once the needs have been identified work is conducted jointly with the specific sector to define the work agenda and the modalities that can be used: group meetings with business owners from the sector, technical assistance, training, links to business promotion tools

To date two cells have been consolidated. One in the tourism sector and another in the food and beverages sector. At the request of private enterprise, the program will be expanded with two more cells, one for the textile sector and a second for the engineering sector

By The Numbers700 MSMEs educated and trained on innovation and technology transfers in less than 14 months70 projects to improve and develop new projects with public co-financing instruments2 Sectoral Congresses and Technology Fairs held

Collaboration Opportunities Supply: Knowledge sharing, hosting country missions, and making an expert available to aid the transferDemand: Similar experiences to enrich the model of intervention

Experience: Productive Development Fund Institution: : Ministry of the Economy, El SalvadorDate: November 2002 – present Webpage: www.fondepro.gob.sv Related principle: 2-Foster the establishment of effective institutions responsible for promoting competiveness

Experience: Sectoral Cells ProgramInstitution: DOffice of Innovation and Technological Development, Ministry of the Economy, El SalvadorDate: August 2012- present Webpage: www.tuinventas.com Related principle: 2-Foster the establishment of effective institutions responsible for promoting competiveness

FONDEPRO stimulates financial inclusion by facilitating MSME credit access to formal and microfinance banking

The Productive Development Fund (FONDEPRO) offers help to micro, small, and medium enterprises

The Sectoral Cells Program contributes to create and speed up business innovation and technological development of vital economic sectors. It has generated stimuli for the strengthening of the government-enterprise relationship, allowing the fluid participation


5 Business Innovation Award Will Strengthen Joint Work between Universities and Businesses

The government offers financial and follow-up support to the entire process; universities create working groups for the generation of new products and/or services, and the enterprise offers a real problem that needs a solution

The current edition has participants from 50% of universities; 300 students have been trained; and 5 products/services have been developed. It is hoped that during the actual stage this figure will increase to 35

Collaboration Opportunities Supply: To share information and one person can help replicate the experience at a distanceDemand: Similar experiences to enrich the model of intervention

Experience: Business Innovation Award Institution: Office of Innovation and Technological Development, Ministry of the Economy, El Salvador Date: August 2012 – present Webpage: www.premionovus.com Related principle: 6–Position innovation and high impact entrepreneurship

The award seeks to strengthen trust in the joint work between universities and businesses to improve competitiveness mainly of small and medium enterprises, and thus be able to develop new products, adopt the latest technologies, create new processes, and improvements in packaging

4 Establishing a Policy of Innovation, Science and Technology as a Pillar for Economic and Social Development

To ensure its implementation, an Inter-Institutional Committee has been formed (Ministers of the Economy, Education, Agriculture and Livestock, Finance, and the Technical Secretariat of the Presidency), an Advisory Council (public, private, academic, and civil society sectors) and an Inter-Ministerial Coordinating Unit (Deputy Ministers and/or their delegates)

Collaboration Opportunities Supply: Information sharingDemand: Assistance in the design of financial instruments of support for innovation; the design of policy monitoring and evaluation systems; and the institution of a national observatory for innovation, science and technology

Experience: Policy of Innovation, Science and TechnologyInstitution: Office of Innovation and Technological Development, Ministry of the Economy, El Salvador Date: August 2012- present Webpage: www.tuinventas.comRelated principle: 2-Foster the establishment of effective institutions responsible for promoting competiveness

The National Policy of Innovation, Science and Technology has the objective to promote and coordinate scientific and technological research with the goal of contributing to sustainable development and social wellbeing

It is a cohesive and inclusive policy that involves more than 50 institutions from the private sector, the academic sector and the government


UNITED STATES

EXPERIENCES

1 Business Ethics Project Designed to Combat Corruption in Sectors where SMEs are Major Stakeholders

Experience: Business Ethics in Sectors of Export Interest to APEC Small- and Medium-Sized EnterprisesInstitution: International Trade Administration, U.S. Department of CommerceDate: OngoingWebpage: www.apec.orgRelated principle: 3- Promoter a simpler, more stable and efficient institutional and regulatory framework

principles for each sector; a code-writing workshop for the medical device sector; a week-long train-the-trainers workshop; and, a workshop to build awareness for, and support among, healthcare professionals, regulators, and anti-corruption authorities for voluntary codes of ethics in the medical device and biopharmaceutical sectors

The United States secured partner economies participation in all projects and worked closely with the private sector to recruit key industry associations and relevant ministry officials from each APEC economy

The model is a quintessential public-private partnership that brings together relevant government agencies (health ministries, public works ministries, anti-corruption commissions, or those mandated with the responsibility of procurement or health and safety regulations) with a wide array of private sector representatives

By The Numbers21 APEC economies are incorporating ethics principles into full textual codes by industry associations3 sets of ethics principles were established for the medical device, biopharmaceutical and construction/engineering sectors

Collaboration Opportunities Supply: Information sharing, workshops, and/or videoconferences for expanding the initial project Demand: Share experiences of other countries

The goal of this initiative is to eliminate the challenges and high costs associated with corruption through clear and concise codes of ethics specific to three industry sectors (medical device, biopharmaceutical and construction/engineering) to facilitate the movement of goods and services across borders throughout the APEC region

Activities include: a workshop to educate SME members on the benefits of ethics compliance; a drafting workshop to establish sets of ethical


2 Bringing Together Core Members of the Medical Device Community to Accelerate the Commercialization of Innovative Medical Technology

and commercialization of next-generation medical devices and medical technology that can save lives and improve quality of life

GCMI works with four key segments of innovators: (1) universities conducting medical device research, (2) clinician entrepreneurs, (3) startup medical device companies lacking prototyping, manufacturing and testing infrastructure, and (4) established medical device companies requiring independent development, prototyping and testing of their device innovations

GCMI provides design, engineering and product development expertise. A handful of products and projects across a range of medical specialties and stages of commercialization were developed, including: cGMP Cleanroom Manufacturing & Prototype, Clinical Trial Coordination, Regulatory Guidance, and design & Engineering

Lessons learned: regular communication – both formal and informal – among all supporting institutions is critical to the success of a medical device commercialization center, particularly during the startup phases; education initiatives provide innovators with both a framework and network to have greater opportunities for success; and network development

By The Numbers50 clinicians, researchers and local entrepreneurs have been participating in this year’s Education Series, which the Center will roll out to larger groups throughout the network in 2013

Collaboration Opportunities Supply: The Center regularly hosts tours and meetings to discuss background information and lessons learned, and it is open to exploring unique ways of supporting medical device development and commercialization in other countriesDemand: GCMI would be interested in understanding the regulatory and healthcare economics environments in the RIAC member countries, as well as understanding clinical trial resources

Experience: Global Center for Medical InnovationInstitution: Georgia Institute of Technology, Saint Joseph’s Translational Research Institute, Piedmont Healthcare, Georgia Research AllianceDate: OngoingWebpage: www.devices.net Related principle: 6- Position innovation and high impact entrepreneurship

The Global Center for Medical Innovation (GCMI) is positioned to help innovators overcome the hurdles associated with bringing new medical technologies from the bench to the bedside

The main objective is to accelerate the development


3 Border Management Reform: Improving the Systems, Regulation, and Infrastructure Needed to Trade More Competitively across Borders

in each country.

This project provides a forum for all affected by border management reform to engage in discussions, recognize best practices, and collaborate to achieve customs modernization.

The project’s goals are: 1) to modernize customs and improve border management by establishing and strengthening public-private partnerships, and, 2) to increase customs’ technical expertise in both the public and private sectors of each country.

Project activities include: 1) Planning and Assessment Trips, 2) in-Country Workshops, 3) Visitor Educational Exchanges, and, 4) Conclusion Conference. These activities bring parties together to identify both issues and cooperative solutions, improve technical knowledge, and recognize and observe best practices.

Workshops and training sessions were held in the three countries. The results include specific commitments and concrete actions to be undertaken by the participants.

Collaboration Opportunities Supply: The U.S. Department of Commerce can facilitate cooperation between the project partners and other RIAC members, improving the potential for coordination, partnership, and resource sharing.Demand: Learning about other innovative methods that RIAC members have employed to encourage public-private dialogue on competitiveness issues; techniques to encourage and ensure SME involvement; other methods employed to ensure continuance of a project after official support or funding has ended; and methods for assisting project recipients to later replicate the project at local or regional levels.

Experience: Central American Border Management ReformCountries: Honduras, Costa Rica, and El Salvador Institution: U.S. Department of CommerceDate: 08/2011 to 08/2013Related principle: 9–Promote trade and integration, trade liberalization, to diversify our economies

The objectives of the project are: to establish and strengthen public-private partnerships in Honduras, Costa Rica, and El Salvador, to work on border management reform, and to increase customs’ technical expertise of the public and private sectors


GUATEMALAEXPERIENCES

1 Key Steps Lead to Electronic Government Project in Guatemala

Experience: BInstitutionalization of Competitiveness TablesDate: OngoingWebpage: http://guatemala.eregulations.org/Related principle: 2- Foster the establishment of effective institutions responsible for promoting competiveness

processes.

Since the launching of the National Competitiveness Agenda and through an agreement with UNCTAD, the initiative eRegulations Guatemala was set in motion, creating a Web portal that keeps track of government transactions. This makes it possible to reduce corruption, offers transparency to processes, reduces unnecessary steps, and facilitates the creation of micro, small and medium enterprises.

Training sessions are held to track and simply transactions, meetings to validate transactions, user workshops, among other activities.

Developments included a customs modernization plan, a Fast-Track Window for Imports, the portal for online registration of businesses - http://guatemala.eregistrations.org/ - and a project to launch a national policy of simplification of transactions and electronic government.

By The Numbers21 APEC economies are incorporating ethics principles into full textual codes by industry associations3 sets of ethics principles were established for the medical device, biopharmaceutical and construction/engineering sectors

Collaboration Opportunities Supply: Information sharing, workshops, and/or videoconferences for expanding the initial project Demand: Share experiences of other countries

In March 2012, the President of the Republic institutionalized Competitiveness Tables with high-level participation by every government entity that directly or indirectly influences competitiveness in the country. The key actors launched the National Competitiveness Agenda, which seeks to achieve modernization and the strengthening of institutions. The creation of inter-institutional working spaces on the subject of competitiveness guarantees that all institutions become actively involved in the processes of simplification of transactions and modernization of


JAMAICAEXPERIENCES

1 National Program Aims for Universal Literacy by 2015

Experience: Literacy ProgramInstitution: Ministry of Education, JamaicaDates: 2009 – presentRelated principle: 1-Promote high-quality, pertinent and timely education

“Literacy enhances personal and national development which in turn impacts regional development”

Barbara AllenSenior Director, Planning and Development DivisionMinistry of Education

The Literacy Programme’s objectives include universal literacy by 2015; to secure national commitment to literacy as the foundation for education, training, and national development; and to ensure that all new entrants to the secondary level are certified as literate

The Ministry established a National Literacy Team with Coordinators and Specialists on Literacy

Local Members of Parliament are provided with reports on the performance of their schools so they can support the activities the schools are putting in place to effect improvement

Between 2009 and 2012, performance improved significantly in Math, Science, Social Studies, and Language Arts

Collaboration Opportunities Supply: Sharing information, workshops, expert visitsDemand: How to ensure/guarantee the early involvement and the responsiveness of pre-service teacher training institutions to the demands of the education system


3 “Business Climate Reforms” Initiative Seeks to Attract Local and Foreign Direct Investments

In January 2012, an agenda was developed which outlines the key initiatives that must be implemented to ensure that the country’s ranking against the various indicators in the Doing Business Report improves during the next two years. There is already a unified understanding among ministries, departments, and agencies on the importance of improving Jamaica’s ranking in the Doing Business Report

The development of the Reform Agenda has sensitized public and private stakeholders about the importance of removing bureaucratic impediments to investor confidence and to become more competitive as a country

The Doing Business Report 2012 shows an increase in the country’s ranking in dealing with construction permits (3 points), getting electricity (2 points), and paying taxes (3 points)

Collaboration Opportunities Supply: Share the experience and methodology and propose to lead a “Competitiveness Business Climate Think Tank” where countries and institutions can share their perspectives and focus their actions to improve the business climate, and that such improvements be reflected in the Doing Business Report indicatorsDemand: Experiences of successful mechanisms for accelerating legal and policy reforms that benefit the business climate, and making the most of available resources to make progress on a reform agenda

Experience: Improving Competitiveness through Business Climate ReformsInstitution: Ministry of Industry, Investment and Commerce and the National Competitiveness Council (NCC), JamaicaDate: November 2011 to present Related principle: 3– Promoter a simpler, more stable and efficient institutional and regulatory framework

The objective of this initiative is to develop a comprehensive agenda of reforms to improve the business climate and investment. It is the first time that an agenda of this nature is developed in the country

2 Program Seeks to Improve Competitiveness by Expanding Access to Credit and Lowering Business Costs

The program’s implementation strengthens public-private dialogue and achieves agreements between both sectors to elaborate key reforms

Despite challenges ahead, distortion in the tax system has been reduced, and progress has been achieved in regulations that lower the business costs of accessing financing

On the implementation of Plans of Action in the areas of Mobile Banking and Land Titling, new developments and innovations arose with the participation of the various actors in the process

By The Numbers45% reduction in stamp duties and transfer taxes75% reduction in the cost of registering a 1,000 square meter parcel with a market value of $1 million

Collaboration Opportunities Supply: Sharing this experience Demand: Interest in developing a second phase of reforms with more emphasis on new activities to promote business activities, innovation, entrepreneurship, and the use of ICT

Experience: Jamaica Competitiveness Enhancement ProgramInstitution: Planning Institute of JamaicaDate: 2005 - presentWebpage: http://www.pioj.gov.jm/Related principle: 3– Promoter a simpler, more stable and efficient institutional and regulatory framework

The objective of the Jamaica Competitiveness Enhancement Program is to improve the country’s competitiveness by promoting reforms that expand access to credit, reduce distortions in the tax system and government participation in inefficient enterprises and projects


4 Certification Program Will Enable Businesses to Become More Internationally Competitive

Certification is intended to enable private sector businesses to become more internationally competitive, especially in the case of businesses that export goods and services. Also, the challenge is to make it possible for key agencies in the public sector to benefit from this type of certification during the next four or five years

This initiative has consolidated effective networks of contacts between agencies, and has successfully trained various agencies/divisions through the use of ICT

The Ministry has achieved great progress in its efforts to obtain or self-declare ISO 9001-2008 certified with respect to its quality management system (QMS) before the end of the fiscal year and complete the Agency/Divisions certificate in 2013-2014

Collaboration Opportunities Supply: Provide a high-level expert to provide strategic guidance to an interested RIAC country Demand: International ISO 9001 Training Courses; observing and conducting audits of management systems (Internal or Gap) at the international level in public or private sector organizations; training in Strategic Project Implementation, Monitoring, and Management relevant to quality certification

Experience: National ISO Quality Management System Certification Project (ISO-QMS-CP) Institution: Ministry of Industry, Investment and Commerce (MIIC)Date: May 2012 to May 2014 (2 years initially)Webpage: www.miic.gov.jm Related principle: 3. Promoter a simpler, more stable and efficient institutional and regulatory framework

The Ministry of Industry, Investment and Commerce is currently providing leadership in the promotion of ISO 9001:2008 Quality Management System (QMS) Certification across the entire public and private sectors in an effort to modernize Quality Management Systems across organizations


MEXICOEXPERIENCES

1 Public-Private Partnerships Contribute to the Development of Mexican Road Infrastructure

Experience: Public-Private Partnerships for Road Development in MexicoInstitution: Ministry of Communications and Transport, MexicoDate: Projects in the Plan of Development 2007-2012 Webpage: www.sct.gob.mxRelated principle:2 – Foster the establishment of effective institutions responsible for promoting competiveness5-Foster the development of a modern, efficient, welt-maintained infrastructure

This system arises from the need to close the gap between the capital required for the development of road infrastructure in Mexico and the capital needed to achieve it. This has led to the development of public-private partnerships which allow the participation of private capital in road investment

The objectives of this initiative include the development of infrastructure, the increase in the amounts invested; raising the quality of services; increasing the efficiency and the productivity of services; and open space for private sector participation

The attraction of private investment has been achieved through 3 modalities: concessions, projects of service delivery, and asset utilization

As an example of the development of road infrastructure in Mexico, let’s mention that the indicator of road infrastructure quality of the Global Competitiveness Index of the World Economic Forum has registered a steady increase in recent years.

By the Numbers20 works totaling 1,096.2 Km amounting to 28,973.3 million pesos32 works under construction or about to begin53 projects supported by public-private partnerships, with an investment of more than 140 billion pesos

Collaboration Opportunities Supply: Sharing information, particularly on the implementation of models of public-private partnerships for the development of road infrastructure in MexicoDemand: Learning from similar experiences from other countries

http://www.sct.gob.mx


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Regulatory Reform Seeks to Focus on the Citizen and Improve Competitiveness

Market Leaders Program Supports the Role of MSMEs in the Country’s Economic Development

Experience: Zero-Based Regulation and Regulatory ImprovementInstitution: Ministry of EconomyDate: September 1, 2009- present (it is a six-year project)Webpage: www.economia.gob.mxRelated principle:3 - Promoter a simpler, more stable and efficient institutional and regulatory framework

Experience: National Market Leaders Program Institution: : Ministry of Economy (Undersecretariat for SMEs)Date: January 2007 – presentWebpage: www.empresastractoras.com Related principle: 9–Promote trade and integration, trade liberalization, to diversify our economies

The work focuses on eliminating unnecessary transactions costs and market distortions generated by regulation, simplifying regulations and procedures with a logic of economic or business processes, and facilitating citizen interaction with services offered by the government

The overall objective of the National Market Leaders Program is to strengthen the value chains of Mexico’s major companies, raising their competitiveness to foster national economic

The first stage of this initiative was to evaluate the regulatory burden of the Federal Government faced by the citizens. The second stage assessed the regulation with high economic impact with which the government developed a strategy of administrative simplification that has generated significant savings. This strategy of reducing the administrative burden also included the initiative to simplify the tax system to encourage the payment of taxes and the twelve-step deregulation program

The best practice in this case can be summarized in the coordination that was generated between the authorities at the federal, local and municipal levels, as well as with the legislative and judicial branches

A recent OECD study underlines that regulatory reform in Mexico has begun to yield benefits such as the reduction in the prices of goods and services; the expansion of the

options for consumers and businesses; the adoption of innovative and efficient technologies in productive activities; the increase of competitiveness and, above all, the creation of new jobs

By the Numbers16.413 internal rules were eliminated, which is equivalent to 46.1% of the rules originally identified (end of June 2012)2.791 procedures were eliminated, which is equivalent to a reduction of 39.6% in the procedures originally identified (end of June 2012)

Collaboration Opportunities Supply: Sharing information, visit of experts, invitation to meetings and fora

development. This is achieved by generating closer links between MSMEs and large firm leaders in their field, in coordination with government authorities and businesses

MSMEs are integrated in the production, commercial and/or services chains of leading firms in the country, supporting increased exports and domestic content

This initiative has made different tools available to SMEs which allow them to meet the requirements of market leaders and increase their sale both nationally and internationally

By the Numbers 8,353 MSMEs received support from the Supplier Development Program (January to July 2012)26,342 business meetings conducted for the benefits of 6,494 MSMEs (January to June 2012) 282 projects supported to strengthen business with financial resources of 578.3 billion pesos (between 2007 and July 2012)) Collaboration Opportunities Supply: Helping replicate this program in other countries and facilitate contacts with the owners of the various supplier methodologiesDemand: Based on similar experiences in other member countries of the RIAC, learn about the support schemes for the insertion of MSMEs in global value chains


4 Mexico Ventures Promotes Venture Capital Investment for Economic Development

Capital) following examples in other countries such as the United States, Australia, Israel, Brazil, etc. Mexico Ventures was structured to operate as a private fund and the government acts as an external investor

The involvement of ‘Smart Capital’ is fundamental to the development of innovative firms and for that it is important to develop the venture capital industry through the creation of Mexican funds, the participation in the market for international funds and in the association of foreign funds with national funds

To carry out the development of a capital investment vehicle, work is being done to develop a strategy with four pillars: creation of the Fund of Venture Capital México Ventures, Development of Fund Manager Funds to establish and manage venture capital funds, technical assistance and the creation of an ecosystem favorable for the development of a venture capital market

The results of this initiative show that beyond replicating an international economic model, it is important to understand the local situation, study foreign examples and have local leaders to execute a long term plan

By the NumbersThe fund is currently invested at 50%Investment is being made in 7 funds3 of 7 funds are first level fundsInvestment of US $8 million are expected in other funds

Collaboration Opportunities Supply: Advisory services, consultancy, participation in events, guided visits. Mexico Ventures can host government officials from other RIAC countries who wish to learn about the initiative by being involved for a pre-determined time in the work and, in so doing, have more information on it functionsDemand: Understanding of the best practices of other countries. What is the government involvement in developing the entrepreneurial ecosystem? Initiatives that can include the integration of networks of angel investors. How to connect the supply (venture capital investment) and the demand (portfolio of viable projects)?

Experience: Mexico VenturesInstitution: Nacional Financiera (NAFINSA), Ministry of Economy, MexicoDate: December 2010 – December 2020Webpage: www.fondodefondos.com.mx Related principle: 9 – Promote trade and integration, trade liberalization, to diversify our economies6- Position innovation and high impact entrepreneurship

The initiative began with the hiring of the consulting firm A.T. Kearney to identify potential areas of growth with respect to the financing of companies in the Mexican market. The study highlighted the need to create an ecosystem of venture capital (Venture


PANAMAEXPERIENCE

1 Digital Colleges by SENACYT Seek to Improve Quality of Education

Experience: SENACYT Digital CollegesInstitution: National Secretariat for Science, Technology, and InnovationDate: October 2009 – October 2013Webpage: www.colegiosdigitales.gob.paRelated principle: 1- Promote high-quality, pertinent and timely education

“The teacher who uses ICT in his specialty stays up to date, improves his teaching and develops new abilities to transfer to the students”

Marisa Montesano de TalaveraDirector of Learning, SENACYT

The project seeks to promote the use of ICT in the teaching community to improve the quality of learning in a way that benefits the student

Digital Colleges use diverse ICT tools (solutions, objects, software, devices, and others). The community of Digital Colleges is open to interested teachers willing to learn various ICT tools

The project’s schools benefit from the use of the latest technology

SENACYT will receive the Wolfram Innovator Award 2012 for the results it has obtained in expanding the project to national universities

By the Numbers2054 teachers have participated35 active centers and associate centers participate in 20125 schools when the project began

Collaboration Opportunities Supply: Visits by observers so they may evaluate the impact of the project; internships, workshops Demand: Make it possible for Panamanian professionals to acquire experience to develop diverse ICT solutions, especially in countries like Argentina, Mexico, USA, and Brazil


3Georgia Tech Innovative Center Seeks to Increase the Capacity and Performance of the Country’s Logistics

analysis that facilitates decision-making related to logistics and business, and develop skilled human capital and create the basis to strengthen the industrial sector

Multiple research and development activities, knowledge-transfer sessions, dual master’s programs, workshops and fora and cooperation platforms, among others, are being conducted

In the region neither a center similar in nature nor such a comprehensive scholarship program has ever been established in this specialized area

By the Numbers+ 80 certified professionals by the logistics center+ 30 Panamanians receiving scholarships in a dual master’s program in engineering through the center

Collaboration Opportunities Supply: Visits of experts, technical tours, videoconferences, workshops, peer reviewDemand: The cooperation of other RIAC countries on logistics issues is very important to guarantee the success of this project

Experience: Georgia Tech Panama Logistics Innovation & Research Center Institution: National Secretariat of Science, Technology and Innovation (SENACYT)Date: September 2010 – June 2015 Webpage: www.gatech.paRelated principle: 4. Prioritize the development of human capital and promote continuous on-the-job training and the acquisition of new competencies6. Position innovation and high impact entrepreneurship

During the implementation of this initiative, a virtual logistics platform was developed (http://logistics.gatech.pa/). It has multiple uses—educational, research, analysis and promotion of the country, as well as all the information on local logistics assets

The project is in its second year of operation and has already created a world- class logistics center that gathers logistics and business information, develop

2 National Competitiveness Forum Promotes Public-Private Dialogue

Director, respectivelyNational Competitiveness Center

The objective of this initiative is to promote a high-level public-private dialogue to identify obstacles that limit improvements in competitiveness in the country, and to propose agreed-upon alternatives to overcome such obstacles

The Forum is composed of three segments. The first and second are held in a plenary session with authorities of the highest level from the public and private sectors, and the third segment, named “Working Groups,” brings together the Forum’s participants at different tables according to their subject of interest

Collaboration Opportunities Supply: Information sharing; workshops; expert visitsDemand: Recommendations for enriching the initiative

Experience: National Competitiveness ForumInstitution: National Competitiveness CenterDate: 2006 - presentWebpage: www.cncpanama.orgRelated principle: 2. Foster the establishment of effective institutions responsible for promoting competiveness

“Joint work between the public and private sectors is possible for achieving common objectives in a win-win situation for all involved”

Nicolás Ardito Barletta y Rosemary PiperDirector General and Administrative Assistant


4 Infoplazas Closes the Digital Divide and Democratizes the Access to Knowledge

National Secretariat of Science, Technology and Innovation (SENACYT)

Infloplazas are centers being built in hard to reach places with the objective of bringing new technologies of information and communication to people who do not know them or do not make use of them on a regular basis

The ultimate goal is to reduce, on a larger scale, the digital, social and economic divide of Panama by increasing the use of ICT as a central element for development, business, training of human resources, etc Each Infoplaza has an Associate which can be an NGO, a Community Board, a mayor, among other nonprofit groups. These groups are responsible for hiring the Manager who is in charge of the Infoplaza covering the operational costs

By the Numbers1.7 million visits of users received (2011)268 Infoplazas established400 Infoplazas established is the goal for 201483% of the districts across the countries have Infoplazas

Collaboration Opportunities Supply: Sharing information, technical visits and workshopsDemand: Successful methodologies that can be used to train massively communities near the Infoplazas

Experience: Infoplazas Institution: National Secretariat of Science, Technology and Innovation (SENACYT)Date: September 1998 – present Webpage: www.senacyt.gob.pa/Related principle: 5- Foster the development of a modern and efficient infrastructure

“There is nothing better than the satisfaction of the work done, especially to see the faces of young children in remote communities when an Infoplaza so close to them is open”


PERUEXPERIENCES

1 An Effective Competitiveness Agenda linked to a Results-based Budget and Conditional Transfer Incentives Policy

Experience: 2012-13 Competitiveness Agenda, as a tool to promote competitiveness reformInstitution: National Competitiveness Council, PeruDate: February 2012-present Webpage: www.cnc.gob.pe Related principle:2-Foster the establishment of effective institutions responsible for promoting competitiveness

business development; quality and productive education; internationalization; connecting to international markets; infrastructure; Information and communication technologies; and trade facilitation

The focus of the 2012-13 Competitiveness Agenda places competitiveness as one of the national priorities which has generated a rich and joint effort to carry on with the reforms Strategies, actions and resources are coordinated and priorities are established by consensus. There is more trust among stakeholders because information on progress is shared transparently and there is room to correct what needs to be corrected. There are regularly scheduled public briefings which are strictly observed. This practice has produced an increased sense of commitment among the stakeholders

In terms of quantitative results, it is worth noting that the pace of implementation of reform has been accelerated. By July 2012, just five months after the introduction of the Competitiveness Agenda, progress levels reached 58 percent, an improvement over the expected 50 percent by that time

“In only five months, the results show that we are moving forward in the right direction and with the right focus. We think this experience can help other countries going through similar processes” Angélica MatsudaExecutive Director Technical Secretariat of the National Competitiveness Council Ministry of Economy and Finance

Collaboration Opportunities Supply: The National Competitiveness Council offers to share its experience. Depending on the level of interest of each country, information could be shared via videoconference, workshopsDemand: Experiences from other countries in the design and implementation of competitiveness at the sub-national level and the role played by the National Competitiveness Council in that context

This is a valuable tool due to its implementation-directed vision, with clear responsibility, accountability, ongoing public reporting, seven public-private working groups operating, linked to results-based budget and conditional transfer incentives policies

The seven strategic areas of concentration over the next two years are: Science, technology and innovation;


2National Competitiveness Council’s Program to Finance Scientific and Technological Research and Business Innovation Activities

Experience: Science and Technology Program FINCYT (Financing for Innovation, Science and Technology)Institution: National Competitiveness Council, PeruDate: 2007- presentRelated principle:6–Position innovation and high impact entrepreneurship

The 5-year FINCYT Program on Science and Technology represents the first significant public investment of scientific and technological research and business innovation activities in Peru

The components in the first phase were: technological innovation projects, research and technological development projects, strengthening and creation of added capacity, strengthening and linkages of the national innovation system

Funding of the program (2007- 2012) comes from a loan of US$25 million from the IDB and US$11 million from the Government of Peru. In 2012, the government is seeking to continue with the implementation of this program through a fund of US$100 million for 4 years, following the same financing mechanism (government and IDB loans) The activities developed by the FINCYT Program on Science and Technology include the financing of innovation projects presented by companies, as well as research and technological development carried out by universities, higher level education centers, consortia of these institutions with the private sector or government agencies. They also cover skills training programs for professionals in high level learning on the design, development, execution and management of research and technological development projects

The program has significantly increased the level of collaboration between universities and companies, based on a series of incentives related to applied to research and applied science

By the Numbers117 technological innovation projects financed70 projects on research and technological development in Universities and research centers financed110 scholarships for graduate studies granted to national and international candidates, as well as diplomas on management of innovation

Collaboration Opportunities Supply: Presentations to share the experienceDemand: Learn experiences in other countries of RIAC to strengthen and complement our efforts


DOMINICANREPUBLIC

EXPERIENCES

1 Consolidating the Public-Private Dialogue to Improve Competitiveness in the Industrial Sector

Experience: Second Congress of Dominican IndustryInstitution: National Competitiveness Council, Dominican RepublicDate: September 6, 2012 Webpage: www.2docongresoindustrial.do Related principle:2- Foster the establishment of effective institutions responsible for promoting competiveness

For the first time in the history of the Dominican Republic, the national industry and the industries welcomed in free zone regimes work together and—along with the government, academia, workers unions, and consumers—identify joint actions to improve competitiveness in the Dominican industrial sector

An organizing committee made up of the National Competitiveness Council, the Association of Industries, the Dominican Association of Free Zones, and the Ministry of Industry and Commerce worked on the elaboration of a competitiveness strategy for the Dominican industrial sector 2012-2017, focusing on the sector’s 7 priority areas

The priority issues in the strategy and for which specific working groups were created are: institutional support, university-industries ties, productive chain links, financing, infrastructure, and formal employment

A permanent committee was created to follow-up on the execution of the proposals and 5 best-practice studies were conducted

The 5 candidates to the country’s Presidency signed a Statement of “Commitment of Support for the Industrial Sector”

By the Numbers33 proposals of established actions to be executed during the 2012-2017 period

Collaboration Opportunities Supply: Sharing experiences, best-practice studies, elaborating and presenting proposals, information summaries and videosDemand: To learn from similar experiences in other countries


2

3

“More SMEs” Project Will Drive Business Growth and Sustainability

“Quality to Compete” Program Benefits Dominican SMEs

Experience: “More SMEs” Project Institution: National Competitiveness Council, Dominican RepublicDate: September 6, 2012 – 2015Webpage: www.maspymes.com.doRelated principle:3 - Promoter a simpler, more stable and efficient institutional and regulatory framework

Experience: Quality to Compete Program Institution: : National Competitiveness Council of the Dominican RepublicDate: 2010 – ended in 2012Webpage: www.calidadparacompetir.org Related principle: 9 - Promote trade and integration, trade liberalization, to diversify our economies

This project will have as its principal objective to increase the competitiveness of small and medium Dominican enterprises by offering technical assistance and training services in areas of business development, innovation and quality, advertising campaigns, SME legal formalization programs, and

The general objective of this initiative is to support Dominican SMEs in the implementation of quality management systems to strengthen their productive and export capabilities, and at the same time to

support for entrepreneurs

The program’s goal is to benefit some 25,000 participants. Also, it is expected to make a difference to 1,000 SMEs by improving their productive mechanisms through innovating their processes and quality

“More SMEs (Mas Pymes, In Spanish)” will rely on an investment of one billion Dominican pesos, with the support of European Development Funds

By the Numbers 84 SMEs requested participation in the project (October 2012)

Collaboration Opportunities Supply: Exchange of knowledge, workshops, work meetings and expert visitsDemand: To learn from similar experiences in other countries

improve their competitiveness

Activities have included training workshops, individual counseling, specialized technical assistance, support in the process of preparing, implementing, and certifying quality systems, as well as financial assistance

A lesson learned is that this type of program can contribute to the improvement of regional SME competitiveness, and that quality has a huge impact on business productivity and facilitates exports.

112 SMEs requested participation in the program, of which 50 met the requirements to become beneficiaries; 43 of them successfully implemented quality systems, and 29 were able to certify their quality systems

Collaboration Opportunities Supply: It is possible to support RIAC in the holding of workshops and meetings to motivate the countries (their governments and SMEs) to implement this type of program. The modalities to replicate the exchange include expert visits and workshopsDemand: We have not identified any experiences in other countries on this matter


SURINAMEEXPERIENCES

1 Task Force implementing Education Innovation Reform

Experience: Task Force Education InnovationInstitution: Cabinet of the President of the Republic SurinameDate: August 2011 – presentRelated principle:1-Promote high-quality, pertinent and timely education

The Overall objective of the Task Force Education Innovation is to advise the government on a renewed education constitution nationwide. Its long term goal is to develop an education reconstruction plan

Parties involved include the key divisions of the Ministry of Education, Teachers unions, the National Parliament of the Republic of Suriname, Political parties and the Private Sector

Hearings held with more than 55 organizations/institutions

Agreements reached with publishing companies, and building contractors. Funding for phase one of the project Renewal of Educational tools for secondary education and School building-programme secured

Collaboration Opportunities Supply: Information sharing, review of programsDemand: Learn about similar experiences


2 New Framework for Private Sector Development to Foster Sustainable Economic Growth and Competitiveness

Experience: Preparation and Start-up of Project Framework for Private Sector DevelopmentInstitution: Competitiveness Enhancement Technical Unit CETU (Competitiveness Council)Date: February 2012 – February 2014Webpage: www.maspymes.com.doRelated principle:2-Foster the establishment of effective institutions responsible for promoting competitiveness

The specific objective is to establish a framework to coordinate the implementation of business climate reform projects and upgrade the human resource on issues related to private sector development in Suriname. The ultimate goal is to foster sustainable economic growth and enhance competitiveness in Suriname

The implementation of the project included a Study tour to Panama to learn from experiences on innovation and productivity

A single unit/area will be the only responsible to monitor the competitiveness enhancement activities

The results are and will be sustainable because they comply with the long term development goals of the country

Collaboration Opportunities Supply: Information sharingDemand: Experiences and knowledge to improve innovation and R&D centers, business – university cooperation, technical assistance on value added development, International marketing and distribution, and Management of Industrial zones


TRINIDAD &TOBAGO

EXPERIENCES

1 Government Establishes New Institutions to Improve Competitiveness

Experience: Establishment of the Economic Development Board and Council for Competitiveness and InnovationInstitution: Ministry of Planning and Sustainable Development, Trinidad and TobagoDate: 2011 – presentWebpage: www.planning.gov.tt Related principle:2-Foster the establishment of effective institutions responsible for promoting competitiveness

The Economic Development Board (EDB) and the Council for Competitiveness and Innovation (CCI) were established in 2011 to develop and implement comprehensive strategies to accelerate sustainable economic growth and prosperity

Among the measurable targets are an increase in the nation’s Global Competitiveness Ranking and expansion of exports

In its preliminary stage, the two Boards have been established and have been tasked with their mandates

The results include five (5) growth poles geographically spread in the country and the determination of six (6) clusters for diversification and growth (Energy, Finance, Maritime Services, Tourism, Creative Industries and Food Sustainability)

Collaboration Opportunities Supply: Information sharing, country visits, workshops, video/teleconferencesDemand: How to connect the dots in a coherent way. Learn from the experience of others to build a national innovation system


2 Innovation Competition Rewards Business Creativity that Serves the National Community

Experience: Idea 2 innovation (i2i) CompetitionInstitution: Council for Competitiveness and Innovation (CCI), Ministry of Planning and Sustainable Development, Trinidad & TobagoDate: May 11, 2012 -August 8, 2012Webpage: www.cci.gov.ttRelated principle:6 – Position innovation and high impact entrepreneurship

“There are many inventors and innovators who need to be stimulated”

Chandricka SeeterramChairman, Council for Competitiveness and InnovationMinistry of Planning and Sustainable Development

The i2i competition is designed to reward business creativity that has the potential to serve the national community by having a positive impact on the economic and social development of the country, and to be commercially viable

Prospective participants/innovators were invited to submit inventions in primary agriculture and biotechnology, the creative industries, ICT, alternative/remedial energy and energy efficiency, agro-industrial processing, the environment, bio-waste and other waste, and tourism

On August 8, 2012, the Ministry of Planning and Sustainable Development (MPSD) hosted an awards ceremony to hand out grants to 50 persons of up to $200,000 dollars for new ideas in given sectors

All 50 winners will be supported by an enterprise incubation system at the Caribbean Industrial Research Institute (CARIRI) to see how many can succeed in the commercial world

By the Numbers A total of 4.385 million Trinidad and Tobago Dollars were awarded for new ideas in the areas of manufacturing, services, creative industries, ICT agro-processing, food and beverage, waste management and green industries

Collaboration Opportunities Supply: Information sharing and details of the i2i initiative are available through the CCI Website, along with contact information should further communication requireDemand: Evaluation criteria and the process used to determine which submissions received funding could also be used


URUGUAYEXPERIENCES

1 Developing Human Capital with Programs to Improve Technical Tertiary Education in Priority Areas

Experience: Support Priority Technical Tertiary Education ProgramsInstitution: National Agency of Research and Innovation (ANII), Uruguay Date: Open between August 20 and October 31 2012 Webpage: www.anii.org.uy Related principle:4-Prioritize the development of human capital and promote continuous on-the-job training and the acquisition of new competencies

The initiative has the main objective of creating or strengthening technical tertiary education programs- no university programs- in priority areas for the economic and social development of the country. Public, public-private institutions can present proposals to create or strengthen existing programs.

The proposals selected receive a maximum of US$200.000. In every instance, there is a requirement of co-financing of at least 20 percent. These funds cover activities such as: development of syllabus and its content; training for faculty and technicians, mobility of faculty and technicians; acquisition of equipment, human resources linked to the management of the program, scholarships for students, and small construction projects

Programs supported offer professional training for youth and favor areas outside the capital to diversify the availability of education opportunities. This prevents the departure of youth from their hometowns and the strengthening of the job market for different industries and new companies created over the last few years in the

country. The competitiveness of the companies benefits from the addition of middle level talent to incorporate and manage new technologies in the different sectors

By the NumbersSo far 11 proposals (9 technical programs outside the capital) have been supported. All these cases support human capital development in industrial sectorsThese technical programs have 350 registered students by December 2011. Registration is growing 21 percent annually which will result in a significant number of industry-ready graduates over time

Collaboration Opportunities Supply: Share the experienceDemand: Experiences on mechanisms developed in other countries to upgrade the professional skills of the productive sector


2 A Transparent and Successful Traceability Control System for the Beef Cattle Value Chain Based on State-of-the-Art ICTs

Experience: Traceability in the Beef Cattle Sector: Information System for the Beef Cattle IndustryInstitution: Ministry of Industry, Energy and Mining, UruguayDate: 2003-presentWebpage: www.inac.gub.uyRelated principle:5-Foster the development of a modern, efficient, welt-maintained infrastructure

The Information System of the Beef Cattle Industry (SEIIC) aims at receiving electronic data of the process leading to the slaughterhouse in 7 strategic points following the established industrial practice. It provides management transparency and creates a level playing field for all the actors in the value chain

The System (SEIIC) has an auditable nation-wide infrastructure in place to carry out full traceability in all the country

The System (SEIIC) is a unique system in the world which is installed in all the beef cattle slaughter houses approved by the sanitary authorities. This capacity represents a positive qualitative step for the productive sector

The system consists of a series of weight stations, industrial computers, printers, scanners and communication equipment, installed in all the slaughter house lines in all the plants which maintain online information available of the production process in real time

Financing was provided by the special tax charged by the National Beef Cattle Institute (INAC) at a rate of $1 per each slaughtered animal. INAC also has a continuous training program for operators in slaughter houses

By the Numbers100% system coverage of the beef cattle slaughter houses registered for the domestic market or for export 100% of the beef cattle owners who send their animals to these establishments can read the confidential information in their terminals (PCs, tablets o cell phones), including the weight results of their animals in each of the seven control points in the production line of each establishment

Collaboration Opportunities Supply: INAC has skilled professionals, experienced operators and institutional expertise to share this experienceDemand: Other experiences in this field with similar objectives


3Development of Technical and Innovation Capabilities in the Sectors of Biotechnology, Nanotechnology, Software and Electronics, and their Value Chains

Experience: Internationalizations of the Productive Specialization (PIEP); Agreement FOCEM-MIEM Institution: Ministry of Industry, Energy and Mining, UruguayDate: 2008-2011Webpage: www.piep.org.uyRelated principle:6- Position innovation and high impact entrepreneurship

The purpose of the Project is to develop technical capacity and technological innovation in the sectors of biotechnology, nanotechnology, software and electronics, and their respective value chains to facilitate trade

Key stakeholders are: companies and researchers in the software, biotechnology, nanotechnology, software and electronics, and their respective value chains in Uruguay and the region, research institutes and trade associations

The Project has been developed with three basic components, with an emphasis on training in these sectors and the financing of the group projects. Component I: Preparing collective projects linked to one company or companies in the selected sector; Component II: Implementation of collective projects at the regional level; Component III: Strengthening and linking this project with other regional cluster programs and companies

“The result has been the implementation of 38 innovative projects with an initial investment of USD 1.500.000 which produced more than a total investment of US$ 4 millon”

Mónica Barriola Director of the Project of Internationalization of the Productive Specialization Coordinator of the Economic Policy Unit, Ministry of Industry, Energy and Mining (MIEM)

Collaboration Opportunities Supply: Share the experience through expert visits, technical missions, workshops. It is also possible to provide training for the implementation of an innovative projectDemand: Learn other experiences on: successfully linking companies and researchers; the application of innovation and new technologies to the reality of your country; innovation in the productive value chain; How to get more development in sectors such as electronics, nanotechnology and market research in these areas


COMPETE CARIBBEAN PROGRAM

EXPERIENCES

1Donor Collaboration for Private Sector Development: Supporting Caribbean Nations on their Path to Sustainable Economic and Social Development

Experience: Compete Caribbean ProgramInstitution: Jointly funded by the Inter-American Development Bank (IDB), the United Kingdom Department of International Development (DFID) and the Canadian International Development Agency (CIDA) and operates in partnership with the Caribbean Development Bank (CDB)Date: May 5, 2010 to May 4, 2015Webpage: www.competecaribbean.orgRelated principle: 2-Foster the establishment of effective institutions responsible for promoting competiveness3-Promoter a simpler, more stable and efficient institutional and regulatory framework6-Position innovation and high impact entrepreneurship

capacity of clusters and firms to increase productivity and compete in national, regional and global markets in a sustainable manner The Program has three pillars: (i) Comprehensive Framework for Private Sector Development; (ii) Business Climate and Competitiveness Enhancement Facility; and (iii) Enterprise Innovation Challenge Fund

The countries involved are: Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominican Republic, Dominica, Grenada, Guyana, Haiti, Jamaica, St Lucia, St Kitts and Nevis, St Vincent and the Grenadines, Suriname, and Trinidad and Tobago

By providing technical assistance grants and investment funding, the comprehensive approach of the Program incorporates: generating knowledge for the development and implementation of

evidence-based Productive Development Policies that link business climate reforms to cluster development initiatives and to improvements at the firm-level; improving the business climate in order to encourage business creation, formalization and to allow SME owners access to finance; and strengthening cluster development, formalizing inter-firm linkages, generating a common and integrated cluster level strategic plan, facilitating the dissemination of strategic information among cluster members.

Providing tailor-made technical assistance to increase productivity, upgrading firm’s operations and strategy, facilitating technology absorption and increasing the capacity for innovation

The Program partnered with the University of the West Indies (UWI) to establish the Caribbean Centre for Competitiveness (CCfC) at UWI’s St. Augustine

“Compete Caribbean has managed to position itself as one of the key players in the Caribbean with regards to unraveling issues facing governments and private sector participants”

Private Sector Development TeamInter-American Development Bank

The ultimate goal of the program is to foster sustainable economic growth and enhance competitiveness in the Caribbean. Specific objectives: (i) increased consensus and focus on strategic interventions to promote private sector development; (ii) improved enabling environment for business development, trade and integration; and, (iii) enhanced


COMPETE CARIBBEAN PROGRAM

Campus in Trinidad and Tobago; and brokered an agreement with the World Bank, the Caribbean Development Bank, the CARICOM Secretariat, the Organisation of Eastern Caribbean States Secretariat, and the Caribbean Export Development Agency

It is the largest multi-donor technical assistance program focused on PSD in the Caribbean, and the largest IDB executed regional program in the Caribbean

Lessons learned: Donor coordination is very important to addressing issues related to competitiveness in developing countries

By the Numbers1,500 + persons trained on applications of cutting edge research for development and competitiveness43 Knowledge Products developed14 Business Climate Reform projects approved 14 pieces of legislation drafted/revised, and competitiveness councils established/strengthened in Saint Lucia, Trinidad and Tobago and Suriname11 Public Private Dialogue events

Collaboration Opportunities Supply: The PCU has 17 experts in this field of work. In addition, with the IDB as the administrator, the program benefits of top class expertise from a recognized multilateral institution Demand: Facilitating targeted knowledge exchanges and study tours amongst key stakeholders in RIAC countries would be highly beneficial, particularly as it relates to sharing best practice in Public-Private Dialogue, designing a reform agenda and implementing it in a short time frame


COMPETITIVE CITIES PROGRAM

EXPERIENCES

1“Competitive Cities Program”, Development Bank of Latin America:“Promoting Productive Development by Strengthening Public Capacity and Value Chains”

Experience: “Competitive Cities Program”Institution: Development Bank of Latin AmericaDate: October 2011 - presentCountries involved: Ecuador, Colombia (Peru, Bolivia, Argentina)Other institutions: Public and private partners in the citiesRelated principle: 2- Foster the establishment of effective institutions responsible for promoting competiveness 6-Position innovation and high impact entrepreneurship

and Barranquilla in Colombia. The next phase will include cities in Bolivia, Peru, Argentina, and then Panama, Paraguay and Uruguay

This experience is significant and has contributed to promoting competitiveness and productivity by working with partners in the public and private sector. Public-private collaboration ensures efficient public sector services which enable the positive performance of the private sector and reduces the obstacles to the value chains

The activities include technical assistance, training and workshops

In Cuenca, the Project includes the municipal government of Cuenca, the government of Azuay, as well as a public-private center called Acudir. In Barranquilla, Colombia, the stakeholders are the Chamber of Commerce of Barranquilla, its Municipal government, and local universities. In other cities where the program will be carried out, public-private partnerships are required as well as co-financing from key actors

“Competitve Cities Program ( Programa de Ciudades Competitivas, in Spanish)” of CAF is linked to a larger

initiative called Cities with Future which features joint interventions dealing with improvements on productive chains, social and infrastructure in cities of CAF member countries

Best practices and lessons learned: For competitive cities programs, the following elements are required: 1. Improved efficiency of public sector programs and strengthened technical capacity of local governments. 2. Supporting a vision that measures existing obstacles for the development of the productive sector

Collaboration Opportunities Supply: CAF has widespread experience in competitiveness issues, cities and local development to share with RIAC Members. The modalities could include information sharing, videoconferences, workshops, as steps to replicate these experiencesDemand: Learn about development policies in cities, methodologies of value chains, implementation of reform

The main objective of the “Competitve Cities Program ( Programa de Ciudades Competitivas, in Spanish)” is to advance in the development of competitiveness agendas in two areas: 1 –Strengthening the public sector to design and implement business development services; and, 2 –Concentrate efforts to eliminate and reduce obstacles to the development of value chains in the cities

This program started in two cities: Cuenca in Ecuador


Message from RIAC Chair Pro Tempore 2013

To Panama it is a cause of pride to receive the Chair Pro Tempore of the Inter-American Competitiveness Network for the 2012-2013 period. Thanks to the work of RIAC member countries throughout the years, and the tireless support of the Organization of American States, we grow stronger every time and more capable of facing the challenges we face on the road to becoming ever more competitive countries.

During our Chairmanship, Panama will be committed to continuing the work undertaken by Colombia. Already, we urge more countries to share their experiences with others, in order to increase productivity and the wealth of our countries. In this way, we promote the transfer of skills and cooperation in the region.

We are convinced that our countries have great potential, and spaces such as this give us the opportunity to talk about innovative methods we can apply or replicate to improve competitiveness and the business climate.

We give a special thanks to our sister country Colombia for the great work conducted during its term as Chair Pro Tempore of the RIAC 2011-2012, and as host of the VI Americas Competitiveness Forum.

Finally, I take this opportunity to invite you to join us next year at the VII Americas Competitiveness Forum, to be held in Panama City. Panama waits for you with open arms!

KRISTELLE GETZLERExecutive SecretarySecretariat of Economic Affairs and CompetitivenessMinistry of the PresidencyRepublic of Panama

Kristelle Getzler


The “Signs of Competitiveness in the Americas” Report was made possible thanks to the contributions received from fifteen countries, eleven regional multilateral/academic institutions, and four experts in the areas of innovation and the creative industries.

The countries that contributed experiences on projects and initiatives undertaken at the national level to be shared at the regional level were Barbados, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Jamaica, Mexico, Panama, Peru, Suriname, Trinidad and Tobago, United States, and Uruguay.

The institutions that submitted technical pieces to the Report were the Inter-American Development Bank – IDB, the Economic Commission for Latin America and the Caribbean – ECLAC, the Central American Bank for Economic Integration (CABEI), the Development Bank of Latin America – CAF, the Compete Caribbean Program, the Global Federation of Competitiveness Councils – GFCC, the International Intellectual Property Institute – IIPI, the consulting firm Oxford Economics, the Training Center for Local Authorities – CIFAL Atlanta, and the

Monterrey TEC. The experts on innovation who provided inputs for the section on “Innovation in the Americas” were the Harvard Business School Professor Clayton Christensen; the Professor of International Business of the Tuck School of Business at Dartmouth, Vijay Govindarajan; the Professor of Physics at the Massachusetts Institute of Technology, Dr. Cardinal Warde; and the Minister of Planning and Sustainable Development of Trinidad and Tobago, Dr. Bhoendradatt Tewarie.

It is especially noteworthy that this Report would not have been possible without the constant and committed collaboration of the individuals who work for the countries and multilateral and academic institutions that support the work of the RIAC.

Finally, we wish to praise Colombia’s commitment in leading the making of the Report as Chair Pro Tempore of the RIAC, and the support offered by the OAS General Secretariat, which as Technical Secretariat helped with the coordination and publication of the Report.

ACKNOWLEDGEMENTS


Libert y Orden

RIAC CHAIR PRO TEMPORE

RIAC TECHNICAL SECRETARIAT

Documents

TOriacnet.org/archivos/nuevo/Signs of Competitiveness in... · 2014. 6. 5. · economic development and the role of the Diaspora in this process. Doctor Bhoendradatt Tewarie, Minister