Chile is increasingly looking to
innovation as a pillar of its competitiveness and an engine
of growth to close the income gap with the Organization for
Economic Cooperation and Development (OECD) economies. The
country has doubled its per capita income since the 1990s.
The growth slowdown in the late 1990s and early 2000s,
however, raised concerns about that the old sources of
growth. While the rate of growth has picked up again,
spurred by a favorable external environment, there is an
increased awareness of the importance of innovation to
growth and a desire to move toward a more diversified and
knowledge-based economy, following the example of other
successful resource-rich economies such as Australia and
Finland. Higher government commitments to innovation have
raised new challenges. The remaining of the report is
structured as follows. Chapter two discusses the importance
of innovation to Chile's economy and highlights the
need to define innovation policy within a comprehensive
framework that encompasses the entire production system.
Chapter three organizes thinking around some basic
governance principles for innovation systems drawing form
the public governance literature, the broader innovation
literature, and international experiences. Chapter four
applies those principles to Chile's public institutions
and agents that will be responsible for defining and
implementing innovation policies. Chapter five examines the
rationale and guiding principles of regional innovation
policies and offers recommendations for Chile's
regional innovation systems and their governance framework.
Chapter six summarizes the main conclusions.