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Latin America’s Innovation Gap

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Latin America’s Innovation Gap

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Low commodity prices constrain R&D investment in Latin America.

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Editorial Rating

8

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  • Innovative
  • Eye Opening
  • Background

Recommendation

Most people don’t view Latin America as a hub for innovation, and the region has done little to buck that reputation. With most countries’ finances in a state of disrepair, spending on research and development is set to fall below already anemic levels. According to this study from the Economist Intelligence Unit, steps toward liberalizing trade and strengthening structural reforms in some countries won’t be enough to lift the area’s progress, compared to other emerging market zones. getAbstract recommends this illuminating article to policy makers, economists, analysts, and others interested in economic trends in Latin America.

Summary

Latin America has never been a global leader in innovation, but between 2004 and 2009, a glimmer of hope emerged when free trade agreements and policies promoting competition came into effect. Large multinational firms across Latin America, or multilatinas, began dotting the landscape. But for the most part, results have been disappointing, with the region’s GDP growth falling from 4.7% in 2011 to zero in 2015. Attempts to promote R&D and education in Latin America have proven largely unsuccessful. The number of international patent applications in Latin America in 2015 was ...

About the Author

The Economist Intelligence Unit is an independent research and analysis organization.

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    J. V. 3 years ago
    This is very insightful. I suppose Latin America needs to eat some humble pie and stop looking to Europe to model after.

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