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José Urquizo Maggia Ministry of Production of Peru XIII UNCTAD INNOVATION AND TECHNOLOGY DAY CHALLENGES, PUBLIC POLICY, PROPOSALS AND ACHIEVEMENTS OF INNOVATION.

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Presentation on theme: "José Urquizo Maggia Ministry of Production of Peru XIII UNCTAD INNOVATION AND TECHNOLOGY DAY CHALLENGES, PUBLIC POLICY, PROPOSALS AND ACHIEVEMENTS OF INNOVATION."— Presentation transcript:

1 José Urquizo Maggia Ministry of Production of Peru XIII UNCTAD INNOVATION AND TECHNOLOGY DAY CHALLENGES, PUBLIC POLICY, PROPOSALS AND ACHIEVEMENTS OF INNOVATION IN PERU

2 SUMMARY Competitiveness and FTA Challenges for innovation 1.Heterogeneity and tradition 2.Productive inclusion and decentralization 3.Closing poverty gaps 4.Training of human resources 5.Diversifying production and exports 6.Overcoming productivity gaps 7.Speeding up innovation upgrade Proposals and achievements

3 Porter PRODUCTIVITY AND GROWTH PRODUCTIVITY AND GROWTH PRODUCTIVE INCLUSION PRODUCTIVE INCLUSION ENVIRONMENTAL SUSTAINABILITY ENVIRONMENTAL SUSTAINABILITY “…Competitive advantage comes mainly from improvement, innovation and change " COMPETITIVENESS

4 GLOBAL INSERTION …Opportunity and challenge... 3 BILLION POTENTIAL CUSTOMERS European Union MERCOSUR Australia TPP - APEC SINGAPUR CHILE CHINA MERCOSUR EUROPEAN UNION EFTA ANDEAN COMMUNITY CANADA UNITED STATES

5 After more than 10 years of growth higher than 6% per annum, Peru has improved its competitiveness position * Source: WEF Global Competitiveness Report... But if we look closer there are challenges that concern us WEF Location competitiveness rankings Peru and Latin America, 2008 and = Best

6 PUBLIC POLICY CHALLENGES OF INNOVATION IN PERU XIII UNCTAD INNOVATION AND TECHNOLOGY DAY

7 CHALLENGE 1. Overcoming Technological Heterogeneity + Inclusion of traditional knowledge and biodiversity wealth Land Machinery Knowledage Agriculture Revolution First Industrial Revolution Information Society Knowledge Revolution Information Strategic factors of competitiveness Manufactoring Mind factoring ICT’s Biotechnology Nanotechnology

8 CHALLENGE 2. Decentralization and diversification of regional production Source: SUNAT – Registro RUC 2011 Percentage of total manufacturing firms Total Manufacturing Enterprises: 136,129 = 55% in Lima accounts for 14.8% of GDP 55%45% Others Regions

9 (31.3%)(48.7%) (54.8%) Source: INEI.... poverty has declined over time...But there are still pending issues

10 CHALLENGE 3. Reduce poverty and competitiveness gaps between regions Source: Centrum Católica COMPETITIVENESS - REGIONAL INDEX 2010 The two poorest regions are the least competitive Innovation can reduce economic and social problems

11 CHALLENGE 4. Promote human capital formation to generate value added Source: INEI National Censum1972, 1993, 2007 (CEPLAN 2009) Professionals according to field (%) Engineering and Science Medicine and Biology Laws, Social Sciences and Humanities Others

12 CHALLENGE 5. Diversify the composition of output Source: INEI, BCR % in Peruvian currency at constant 1994 prices

13 CHALLENGE 5. Diversifing the export supply Source: BCRP, SUNAT.

14 CHALLENGE 6. Increase business productivity and reduce the gap between Small, Medium and Large Enterprise Source: FOROMIC (2009) Sales / worker(thousand US$) Employment (millons) Microenterprises 3,150 USD Microenterprises 3,150 USD Small Enterprises 8,000 USD Medium Enterprises 27,000 USD Large Enterprises 48,000 USD

15 INNOVATION BrasilChile Colombia México Argentina Perú General Entorno favorable Competencia Calidad de la educación matemática y de la ciencia Calidad del sistema educativo Uso de las TIC Gasto del Gobierno en tecnología Protección de la Propiedad Intelectual Disponibilidad del capital de riesgo Inversión Gasto de las compañías en I+D Calidad de los científicos en las instituciones de investigación Colaboración entre Universidad- Industria en I+D Disponibilidad de Científicos e Ingenieros Desempeño Capacidad de innovación Patentes utilizadas por millón de habitantes CHALLENGE 7. Enhance innovation Ranking of competitiveness: Innovation Source: The Global Competitiveness Report = Best

16 PUBLIC POLICY PROPOSALS and ACHIEVEMENTS FOR INNOVATION IN PERU XIII UNCTAD INNOVATION AND TECHNOLOGY DAY

17 SEVEN STRATEGIC PILLARS: 1.SCIENCE, TECHNOLOGY & INNOVATION 2.BUSINESS DEVELOPMENT, QUALITY & PRODUCTIVE TRAINING 3.INTERNATIONALIZATION 4.INFRAESTRUCTURE 5.INFORMATION AND COMUNICATION TECHNOLOGIES 6.FACILITATE BUSSINES ACTIVITIES 7.ENVIROMENTAL SUSTAINABILITY COMPETITIVENESS AGENDA 2012 – 2013 February 9th, 2012

18 1.To invest in innovation (processes, products, services and new organizational arrangements). De 0,15% a 0,7% en To establish a multisectoral institutional framework to foster the development of Science, Technology and Innovation (STI). Sept, To support industries to diversify production and promote new industries, generate more value added using traditional technologies and adopting new ones CITEs and FUNDS 4.To decentralize the productive structure and close productivity gaps 5.To promote the formation and improvement of human capital and more participation of the private sector in STI ¿ WHAT HAS PERU PROPOSED TO DO?

19 PROPOSAL 1 : Investment on R & D. GOAL: 0,7% del GDP- Regional average 0.6% Source; CEPAL. INVESTMENT ON RESEARCH AND DEVELOPMENT (2006)

20 PROPOSAL 2: INNOVATION AS A MULTI SECTOR RESPONSIBILITY. Institutional framework to link knowledge and technology to businesses

21 Purpose: Access to technology and promotion of innovation Agents for Technological Transfer between enterprises and R&D institutions Active presence of the private sector at the managerial level Integrated in a NETWORK - RED de CITEs Link between knowledge generation and productive activities Strategic partner of enterprises GOOD PERUVIAN PRACTICES TO PROMOTE INNOVATION Innovation Technological Centers - CITEs

22 Tacna: CITEagroindustrial Piura: CITEAgroindustrial Cajamarca: CITEminero Loreto: CITEfrutas tropicales y plantas medicinales. CITEforestal Arequipa: CITEconfecciones CITEagrondustrial CITEindustria textil camélidos IPAC CITEagroalimentario de Majes San Martin: CITEcacao Pucallpa: U.T CITEmadera Lima: CITEmadera: Mueble CITEccal: Cuero-Calzado CITEmetalmecánico CITElogistico GS1 CITEsoftware CITEmarketing Operating in process Promote regional development, productive value chains and competitive clusters Ica: CITEvid Network of CITEs according to the descentralization process

23 Lab testing R&D+i projects Promote the use of standards Product Development and Design Technical information and Technological watch Training Technical Assistance Quality System Pilot Plants Market driven value chain Logistics management and ITC ROLE AND SERVICES OF CITES ENTERPRISES & MARKETS Innovation R&D+i Technological Transfer Productivity and Quality improvement

24

25 QUALITY AND STANDARDIZATION FOR FREE TRADE AGREEMENTS COMMITMENTS CITEs are part of Technical Standards Comitees Besides, CITEs run labs to test for norms compiance e.g.:  Wood and furniture (CITEmadera).  Footwear and leather (CITEccal; ISO17025).  Pisco, wine, wineyard and grape(CITEvid; ISO17025).  Alpaca fiber - textile (CITEtextil de camélidos IPAC)- Arequipa.  R&D+i standards ( OTCITs).

26 GOOD PERUVIAN PRACTICES Funds for Innovation Co-financing Cooperating to compete

27  PRODUCTIVITY AND COSTS  QUALITY AND SAFETY  DESIGN AND PACKAGING  QUALITY AND SAFETY STANDARDS  VOLUME  DESIGN  MARKET PRICES Innovation funds MARKEtMARKEt PRODUCERS, ORGANIZATIONS & ENTREPRENEURS TECHNOLOGY PARTNERS Technological Innovation COMPETITIVENESS

28 SCIENCE AND TECHNOLOGY FUNDS FINCYT I ( ) 36 million US dollars  IDB Nº 1663/OC-PE Funds granted since 2010: US$ 62´000,000  Financing up to 75% of 2 different kinds of proyects FINCYT II ( ) 100 million US dollars. Start : 2nd Half 2012

29 XIII UNCTAD INNOVATION AND TECHNOLOGY DAY Competitiveness ranking 2011: 67 Global Innovation Ranking 2011: Patents 4,965 researchers 2021 GOALS Competitiveness ranking 2021: 40 Global Innovation Ranking 2021: 70 6,000 Patents 20,000 Researchers

30 THANKS … Future depends on all of us INNOVATION AND TECHNOLOGY DAY José Urquizo Maggia Ministry of Production - Peru


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