Towards an efficient innovation policy in Latin America

Innovation has emerged as a central theme on the growth agenda of
Latin America. This paper examines four issues. First, how can we know
if Latin America really has an innovation problem that is behind its weak
total factor productivity performance? Second, what do we mean by
innovation and what are dimensions of it in which the region exhibits
weaknesses? Third, what does recent experience and literature suggest
for principles and broad policy measures to foment innovation? Fourth,
are there any linkages between these weaknesses and equity? Since even
in the Organisation for Economic Cooperation and Development (OECD);
there is little consensus on the specific policies that governments should
implement, and even less on their suitability to developing countries, this
paper attempts to organize thinking around some basic principles and
offer suggestive experience rather than specific policy advice.