1. Input Paper Funding Mechanisms Working Group Funding Mechanisms Working Group Chair: Development Bank of Latin America (CAF) Input Paper Funding Mechanisms Working Group1

2. Funding Mechanisms Working Group 2 Name*OrganisationCountry Adolfo Castejon (Chair)CAFRegional Alfonso LunaKentrikyMexico Paulo EglerIBICTBrazil Pablo Miguel Jacovkis National University Tres de Febrero Argentina Otto Rivera ValleCAMTICCosta Rica Raúl KatzColumbia UniversityArgentina Mariana YasbeckSOFTEXBrazil Mario CastilloCEPALChile Raúl MonroyITESMMexico Jairo EspinosaUNALColombia Luis SteinGECHSChile Rosita WachenchauzerMINCYTArgentina María MesoneroCONICYTChile Mauricio AgudeloCAFRegional *The LAC-ICT Expert Group description and members can be found in www.lac- ictexpertgroup.euwww.lac- ictexpertgroup.eu 14 experts It is conformed by 14 high-level experts from the industry, academic, and scientific community Input Paper Funding Mechanisms Working Group

3. Objective Create a dynamic and updatable input paper, including identification of main funding mechanisms for projects in ICT Research, with recommendations for enhanced cooperation and suggestions for strengthening and supporting funding mechanisms. 3Input Paper Funding Mechanisms Working Group

4. Introduction Input Paper on Funding Mechanisms Working Group addresses 7 LAC countries: 4 Countries Analysed ArgentinaBrazilChileColombiaMéxico Costa Rica Peru Input Paper Funding Mechanisms Working Group

5. Content 5 The report firstly presents the scope and purpose of the document Gives an overview of the Funding Mechanisms in Latin America (by country). Provides an overall analysis of programs and funding mechanisms aimed at providing support of international cooperation in ICT research and innovation. Identifies all complementary funding mechanisms for cooperation between Europe and Latin America in ICT research and innovation. Identifies the programs, funding amounts and terms by country that are explicitly open to European researchers. Finally, drafts recommendations to three stakeholders (Latin American institutions and funding agencies, institutions responsible of political dialogue on science and technology between the European Union and Latin America, and the European Commission). Input Paper Funding Mechanisms Working Group

6. Methodology Literature review Funding Mechanisms and Programs in the target countries (i.e. Argentina, Brazil, Chile, Colombia, Mexico, Costa Rica and Peru) Survey 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 6Input Paper Funding Mechanisms Working Group

7. Overview: 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) 7

8. Overview: 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 8 Input Paper Funding Mechanisms Working Group

9. Overview: 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. 9 Input Paper Funding Mechanisms Working Group

10. Overview: 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) 10 Input Paper Funding Mechanisms Working Group

11. FINDINGS: Main Funding Mechanisms by country. Argentina: 34 ICT research and development funding programs were identified in Argentina, of which 8 are open to Europeans, while 13 are not explicit about their national eligibility conditions. The major funding for ICT research in Argentina is the Ministerio de Ciencia, Tecnología e Innovación Productiva (MINCYT). (165.16 US$ millions) Brazil: 18 funding programs were identified in Brazil, of which 12 are open to Europeans, while 4 are not explicit about their national eligibility conditions. Multiple ministries and national entities provide funding for ICT research and development. Among them, the Ministerio de Ciencia, Tecnologia e Inovação (MCTI), the Ministerio de Desarrollo, Industria y Comercio Exterior, and the Ministério de Educação are the most prominent ones. (16.28 US$ billions) 11

12. FINDINGS: Main Funding Mechanisms by country. Chile: 24 funding programs were identified in Chile, of which 14 are open to Europeans, while 8 are not explicit about their national eligibility conditions. There are several national public organizations providing ICT R&D funding. Among them, the most prominent are the Comisión Nacional de Investigación Científica y Tecnológica (CONICYT), and the Corporación de Fomento de la Producción (CORFO). (173.13 US$ millions) Colombia: 15 funding programs were identified in Colombia, of which 9 are open to Europeans, while 3 are not explicit about their national eligibility conditions. The government funding programs of ICT research in Colombia are centralized through COLCIENCIAS, which, at this time, benefits from ministerial ranking. (1.12 US$ billions) Mexico: 19 funding programs were identified in Mexico, of which 5 are open to Europeans, while 2 are not explicit about their national eligibility conditions. The most important funding organization is the Consejo Nacional de Ciencia y Tecnología (CONACYT). (2.59 US$ billions) 12 Input Paper Funding Mechanisms Working Group

13. FINDINGS: Main Funding Mechanisms by country. Costa Rica: 4 funding programs were identified in Costa Rica, just 1 is not explicit about their national eligibility conditions (sponsored by the private sector). (78.71 US$ millions) Peru: 8 funding programs were identified in Peru, of which 6 are open to Europeans (all of them are sponsored by national public sector institutions) and 1 is not explicit about their national eligibility conditions. Consejo Nacional de Ciencia y Tecnología and Ministerio de la Producción are the main institutions for ICT funding. (31.13 US$ millions) 13 Input Paper Funding Mechanisms Working Group

14. Key Issues: There is a visible fragmentation and lack of coordination across ICT research funding mechanisms programs and agencies. 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. 14

15. Key Issues: 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: 15 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 with an ICT development agenda. Second, European agencies and multilateral institutions sometimes sign agreements not always taking in to account national development programs.

16. Recommendations to 16 Latin American institutions and Funding Agencies that manage funding programs Input Paper Funding Mechanisms Working Group Recommendation 1. To develop a country-by-country comprehensive institutional framework that enhances the alignment between the various funding sources and programs and national ICT development objectives. Additionally, this framework would facilitate the potential coordination of programs in order to avoid redundancies. Recommendation 2: To develop a country specific maps of funding mechanisms with again, the purpose of rationalizing the sources of funding. In addition, these maps could serve as a basis for providing researchers with a tool that enhances their visibility of potential funding programs. This matching platform could enhance efficiency in resource allocation.

17. Recommendations to Recommendation. To establish coordination mechanisms on both ends of bilateral agreements. 17 Institutions responsible of political dialogue on Science, Technology and Innovation between EU and Latin America Input Paper Funding Mechanisms Working Group 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 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.

18. Recommendations to Recommendation. To enhance awareness of the opportunities available to ICT researchers. ICT is becoming an important infrastructure component with economic potential. Countries such as Colombia, Brazil and Mexico are recognizing the value of ICT to enhance and reorient their economies. Latin America could greatly benefit from additional support from the European Union, through funding focused on applied science and technology, entrepreneurship, and firm development. 18 European Commission Input Paper Funding Mechanisms Working Group The European Commission could further enhance its position in the Latin American region by focusing supporting resources in these areas, and increasing awareness of available programs. Support could range from engineering and technology to business management and economics, thereby further enhancing the range of potential disciplines. A lot of these areas are already being addressed in the Horizon 2020 program.

19. Download the complete report at: http://www.leadershipproject.eu/?page_id=3442 http://www.leadershipproject.eu/?page_id=3442 19 This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no 611099 Quotation: When quoting information from this report, please use the following phrase: “Input Paper Funding Mechanisms Working Group – Mapping of Latin American Programs and Financing Mechanisms supporting international cooperation in ICT research and innovation, access to programs and recommendations”, LEADERSHIP project. The consortium: Input Paper Funding Mechanisms Working Group

20. Thank you www.leadershipproject.eu @LEADERSHIPeu Facebook.com/LEADERSHIPeu Linkedin Group: Co-Innovation-LAC Yolanda Ursa email: yolanda.ursa@grupoinmark.comyolanda.ursa@grupoinmark.com Adolfo Castejon e-mail: acastejon@caf.comacastejon@caf.com 20Input Paper Funding Mechanisms Working Group