1. REGIONAL POLICY DIALOGUE SCIENCE, TECHNOLOGY AND INNOVATION
POLICY CHALLENGES
Daniel Malkin
Deputy Manager, SDS/EST
December 11th, 2006

2. Science, Technology and Innovation in LAC
At regional level, important and persistent lag concerning STI inputs (R&D expenditure and Human Resources) and outcomes (patents)
In 2003 Korea invested in R&D more than the whole of LAC (US$ 14,000 million)
China had twice the number of researchers per labor force as LAC; in 2006, China will have invested more than Japan (US$130,000 million)
Structural biases
Government and private sector participation and role in R&D financing and performance
Political-economical framework (labor and financial markets, IP, competition)
Governance
Great diversity of situations and conditions of NSIs

3. Lag and great disparities in R&D intensity (R&D Total Expenditure/GDP)

4. …and in Human Capital (Researchers per 1000 Labor Force )

5. … Added to the low level of participation and contribution of the private sector to R&D
R&D Expenditure by Source of Financing (2003 or latest available)

6. … and the low productivity of R&D in the private sector (Number of patents granted by USPTO)

7. Principal challenges in STI policies (1)
Conditions of political and strategic framework (financial and labor markets, competition, Intellectual Property)
Scientific and technological infrastructure and supporting Technology diffusion (extension centers, SMEs, ICT, metrology)
Institutional development (governance, priorities, financing, resources allocation, coherence of policies)
Development and mobility of human resources

8. Principal challenges in STI policies (2)
CPI/productive sector linkage (university reform, marketing, incentives, public/private partnership)
Support mechanisms for private R&D and innovation
horizontal vs. “focused”; fiscal vs. subsidies
Strategic sectors (social demand)
Clusters and excellence centers
Information, monitoring and evaluation systems

9. IDB’s medium term strategy - Approach
Assigning priority to STI in country strategies (mainstreaming and evaluation, dialogues)
Supporting institutional development (NIS and Governance)
Technological infrastructure
Human Resources (S&T and Engineering)
Strategic sectors or technologies, clusters and excellence centers
Supporting investment in R&D and private sector innovation (e.g., sector funds, innovation funds, venture capital, SMEs)
Regional cooperation
Collaboration with private sector (national and foreign)
Bank instruments (TCs KFT, RTCs and loans, consolidation of internal experience).

10. Possible discussion topics for the future
Governance and institutional strengthening
Coordination with other governmental organizations and ministries of finance
Public research institutions (academic and CPIs): autonomy, financing, evaluation
Institutes and management of intellectual property
Human resources funding and mobility
Incentives to SMEs
Mechanisms and financing of regional S&T cooperation programs
Information, monitoring and evaluation systems

11. Daniel Malkin danielma@iadb.org
Thank you
Daniel Malkin