1. Input Paper Funding Mechanisms: Mapping of Latin American Programs and Financing Mechanisms supporting International Cooperation in ICT Research and Innovation, access to programs and recommendations Buenos Aires, 11 March 2015 Workshop on ICT International Cooperation EU-LAC Adolfo Castejón - CAF 11/03/2015LEADERSHIP Buenos Aires1

2. Agenda Objective of the study Methodology and approach Key findings Recommendations 11/03/2015LEADERSHIP Buenos Aires2

3. OBJECTIVE OF THE STUDY: To identify the most important joint funding mechanisms for projects in ICT research that could be complementary to European funds Map the main programs and financing funds supporting international cooperation in ICT research and innovation in Argentina, Brazil, Chile, Mexico, Colombia, Costa Rica and Peru. Identify complementary funding mechanisms for cooperation with Europe in ICT research and innovation. Review access for European researchers to programs and funding mechanisms, in terms of their eligibility and reciprocity. 11/03/2015LEADERSHIP Buenos Aires3

4. METHODOLOGY AND APPROACH: The study was based on 3 primary inputs: An extensive desk research of funding programs, both in the public (national and local governments) and private (enterprises and non-profit foundations) sectors in Latin America in the area of ICT research and innovation; the purpose was to identify the sources of funding, the type of research being funded, the candidates eligible for funding, etc. A survey of public and private institutions providers, and recipients of funding aimed at understanding perceptions oriented to financing needs and current funding mechanisms for ICT research and innovation. Comments based on the discussions held with the LAC-ICT Expert Group set up by LEADERSHIP about funding mechanisms. 411/03/2015LEADERSHIP Buenos Aires

5. FINDINGS: The study identified 122 ICT research funding programs focused on ICT research and innovation in the 7 countries addressed in the study. LATIN AMERICA: ICT RESEARCH AND INNOVATION FUNDING PROGRAMS Source: Telecom Advisory Services compilation (2014) 11/03/2015LEADERSHIP Buenos Aires5

6. FINDINGS: For example, 34 ICT R&D programs were identified in Argentina, of which 8 are open to Europeans, while 13 are not explicit about their national eligibility. 11/03/2015LEADERSHIP Buenos Aires6

7. FINDINGS: Beyond the national programs, there are 3 types of complementary funding mechanisms promoting cooperation between Latin America and Europe International funding mechanisms: funding programs sponsored by multilateral institutions aimed at promoting cooperation between Europe and Latin America. Bilateral agreements: funding agreements signed between specific European and Latin American countries aimed at promoting cooperation in ICT research. Latin American funding programs open to European researchers: funding programs sponsored by Latin American institutions (public and private) open to European researchers. 11/03/2015LEADERSHIP Buenos Aires7

8. FINDINGS: Many bilateral cooperative agreements have been signed between Europe and Latin America countries to provide funds for ICT research (Argentina, Brazil, Chile, Colombia and Mexico) 11/03/2015LEADERSHIP Buenos Aires8

9. FINDINGS: Total funds budgeted for ICT research in the countries under study approximate US$20.4 billion per year. LATIN AMERICA: Total funds by geographic eligibility (in US$ million) Source: Telecom Advisory Services analysis 11/03/2015LEADERSHIP Buenos Aires9

10. FINDINGS: The fragmentation across ICT research funding mechanisms programs and agencies continues to be pervasive across Latin America. Some of the programs are integrated within institutional frameworks, typically laid out at the country level: CONICET (Argentina), CONACYT (Mexico), FINEP (Brazil) and CORFO (Chile) function as coordinating entities providing consistency across funding. However, this is not enough to integrate other funding sources (sub- national and cross-institutional). When adding private funding sources, the fragmentation increases exponentially. This state of affairs hampers the efficient allocation of funds as well as the alignment of funds with ICT development objectives. We are aware that this fragmentation cannot be fully addressed over the short run. However, some initiatives can incrementally improve the efficiency in resource allocation. 11/03/2015LEADERSHIP Buenos Aires10

11. FINDINGS: There is also a correlation between the lack of coordination and allocation efficiencies on a country level when referring to bilateral funding mechanisms. The multiple sources and agreements between countries and between countries and multilateral institutions appear to have little coordination. Two levels of fragmentation have been detected: –First, Latin American countries tend to sign agreements based on reciprocity terms. They do not usually include comprehensive frameworks that avoid redundancies and link the agreements to an overarching ICT development agenda. –Second, European agencies and multilateral institutions signing agreements with Latin American lack coordination. They are redundant and inefficient in the provision of funding. 11/03/2015LEADERSHIP Buenos Aires11

12. RECOMMENDATION: To address fragmentation, deploy a country-wide comprehensive framework to define basic principles that guide funding. ICT INSTITUTIONAL FRAMEWORK 11/03/2015LEADERSHIP Buenos Aires12

13. RECOMMENDATION I: This framework would provide a single set of eligibility principles aligned with the objectives of ICT national strategies. In order to compete for funds, institutions and researchers should be aligned with the national ICT policies and strategies. This way, funds will be steered to strategically important areas of research. Acting as a matching platform, such a framework would be a highly effective mechanism for improving alignment and efficiency in the allocation of funds among researchers, research centers, and start-ups. Furthermore, the framework could standardize application processes, reducing redundant efforts that currently need to be carried out by units seeking for funds.. 11/03/2015LEADERSHIP Buenos Aires13

14. RECOMMENDATION II: Develop country specific maps of funding mechanisms to rationalize the sources of funding.. FUNDING MECHANISMS AND THE ICT INNOVATION LIFE CYCLE It would be useful to conduct a detailed mapping effort to understand the availability of funding programs, or lack thereof, in support of ICT research at the country level. 11/03/2015LEADERSHIP Buenos Aires14

15. RECOMMENDATION II: This map would be useful to identify redundancies or potential relative scarcity for specific stages of the ICT project life cycle ARGENTINA: FUNDING MECHANISMS AND THE ICT INNOVATION LIFE CYCLE 11/03/2015LEADERSHIP Buenos Aires15

16. RECOMMENDATION III: Establish coordination mechanisms on both ends of bilateral agreements. First, whenever Latin American countries sign agreements based on reciprocity, they should do it in the context of a comprehensive framework to avoid redundancies and link the agreements to an overarching ICT development agenda. Second, European agencies and multilateral institutions need to coordinate among themselves in order to avoid redundancy and inefficiency in the provision of funding.. 11/03/2015LEADERSHIP Buenos Aires16

17. RECOMMENDATION IV: Despite the resources being assigned to ICT research, Latin America could benefit from additional support from the European Union. Funding focused on applied science and technology, entrepreneurship, and firm development are in urgent need. Along these lines, the European Commission could further enhance its position in the Latin American region by focusing on supporting resources in these areas, and increasing visibility of available programs. Support could range from engineering and technology, to business management and economics, enhancing this way the range of potential disciplines. While most of these areas are included in the H2020 Program, enhanced visibility of the cooperation opportunities by Latin American researchers could benefit greatly.. 11/03/2015LEADERSHIP Buenos Aires17

18. RECOMMENDATION IV: The additional support coming from the Commission should be drafted complementarily to existing programs to avoid redundancies. Beyond the Horizon 2020 program, additional support coming from the Commission should be drafted in a complementary fashion with local programs to avoid redundancies. For this purpose, it would be beneficial to pursue the ongoing dialogue with Commission representatives by bringing in representatives from the public and private sectors in the Latin American ICT arena. This dialogue with ICT stakeholders will allow the development of specific themes of funding support that are aligned with each of the Latin American development needs. This dialogue could be reinforced and extended to countries considered to be leaders in ICT development in the region, such as Brazil, Mexico and, Colombia.. 11/03/2015LEADERSHIP Buenos Aires18