OUR MISSION

Enhance business productivity and competitiveness in the Latin

America and Caribbean region by facilitating the creation and growth

of dynamic firms with the capacities and tools to innovate and

compete in international markets.

I. BACKGROUND: KEY CHALLENGES IN I. BACKGROUND: KEY CHALLENGES IN INNOVATION AND PRODUCTIVE INNOVATION AND PRODUCTIVE

DEVELOPMENT IN LACDEVELOPMENT IN LAC

GENERALLY IN LAC GENERALLY IN LAC -- THE PRIVATE SECTOR IS NOT THE PRIVATE SECTOR IS NOT INVOLVED IN INNOVATIONINVOLVED IN INNOVATION

Private sector investment in innovation and R&D is extremely low.

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LAC firms concentrate investment in innovation in acquisition of machinery and equipment.

WHAT DO FIRMS SAY?WHAT DO FIRMS SAY?

Obstacles to innovation: Evidence from innovation surveys (average for LAC).

Financing for Intangibles

Innovation Risk

Skilled Human Capital

Appropriability

CTI Target firms in LAC

The productivity of the firms in Latin America varies across a very wide spectrum. CTI supports increasing incremental innovation capabilities - meeting LAC firms along a spectrum of existing

capacities - to move low productivity firms closer to the technological frontier.

If anything LAC suffers from a deficit of average players; firms with mediumproductivity levels. (DIA, IDB 2010)

Most policy interventions in LAC are needed among

these firms and here is where CTI concentrates

its work.

Low Productivity Firms

Medium Productivity Firms

Super Star Firms

TRENDS IN INNOVATION AND PRODUCTIVE TRENDS IN INNOVATION AND PRODUCTIVE DEVELOPMENT POLICIES IN LACDEVELOPMENT POLICIES IN LAC

Policies/Instruments

Focus

Development of public goods forinnovation, notably human capital,scientific capabilities, and infrastructure

Development of innovation capacity and productivity upgrading at the firm level.

Address coordination failures among the diverse actors and reinforce innovation capacity in sectors deemed strategic for the country’s competitiveness

Example of Policies/Instruments

S&T funds Technology and Innovation Funds to upgrade firm productivity and technological development

Innovation clusters, promotion of clusters (agglomeration economies), global value chains, business incubators, etc.

Support for national graduate programs

Incentives for R&D Coordination mechanisms betweenactors in the Innovation and Competitiveness System

Support to Centers of Excellence Venture capital and other mechanisms to support entrepreneurship

Support for the Innovation and Business Climate Agendas

II. CTIII. CTI’’S STRATEGIC S STRATEGIC OBJECTIVES AND AREAS OF OBJECTIVES AND AREAS OF

FOCUSFOCUS

OUR STRATEGIC OBJECTIVESImproving the policy and regulatory framework so that it is conducive to innovation and entrepreneurship, and to the creation and growth of competitive firms

Designing, implementing and evaluating productive (business) development and innovation policies that:

•Increase private sector investment in innovation and technological development• Boost the productivity of firms and their capabilities to network and compete in international markets.

Strengthening the capacity of institutions to design and implement innovation and productive development policies (governance models, policy coordination, management and evaluation capacities).

THEMATIC AREAS OF WORK

INSTITUTIONS AND ENVIRONMENTENTREPRENEURSHIP

INNOVATION IN FIRMS BUSINESS DEVELOPMENTEconomic growth depends on private sector

investment in innovation and new technologies.Successful firms are parts of extensive networks in which they compete as much as they collaborate, learn, gain critical mass and share public

inputs to make a unique mark in the local and global marketplace.

The ability of a country to adapt and take advantage of technological changes and dynamics of the global context depends upon its

entrepreneurs.

Institutions and enabling environments are crucial for promotingcompetitiveness and innovation in firms.

INNOVATION IN FIRMS

Support for firms to increase their investment in innovation and technological development, based both on research and development and new business models.

Technology diffusion, transfer and adoption in firms, especially in ICTs and green & clean technologies.

Increased firm capabilities in design, quality management and intellectual property.

Strengthening human capital for innovation and technology absorption.

Economic growth depends on private sector investment in innovation and new technologies

BUSINESS DEVELOPMENT

Successful firms are parts of extensive networks in which they compete as much as they collaborate, learn, gain critical mass and share public

inputs to make a unique mark in the local and global marketplace

Support productive development policies and programs to strengthen firm linkages, upgrade productive capabilities and foster firm competitiveness (clusters, value chains, and innovation systems).

Business development services and access to markets (export promotion, internationalization, ICT programs).

Improved access to information for the design, monitoring and evaluation of SME policies.

ENTREPRENEURSHIP

Incentives for entrepreneurs and dynamic entrepreneurship, especially in ICT and knowledge intensive industries.

Promote and develop a culture of entrepreneurship.

Support networks, incubators and programs to unleash entrepreneurial talent.

Programs to develop and strengthen sources of entrepreneurial finance (seed and angel financing).

The ability of a country to adapt and take advantage of technological changes and dynamics of the global context depends upon its entrepreneurs.

INSTITUTIONS AND ENVIRONMENT

Solid institutions and enabling environments are crucial for promoting competitiveness and innovation in firms.

Promote a climate of innovation and competitiveness.

Strengthen institutions and knowledge networks.

Improved regulatory frameworks to facilitate the creation and development of innovative companies.

Facilitate public-private sector dialogue.

Norte Grande Competitiveness Program

Development of Satellite System and Applications Program

SMEs Credit Access and Competitiveness Program

CCLIP: Program of Technological InnovationTechnological Innovation Program II

Technological Innovation Program III

Science and Technology Program

Clusters Competitiveness and Value Chains

Technology Development Program II

Strengthening of the Entrepreneurial Activity Program Estado de Bahía

Innovation and Dissemination Local Cluster Competitiveness State of Pernambuco

Cluster Competitiveness Support Program for Minas Gerais

Competitiveness of Business in Local Production Systems in São Paulo

Science and Technology Program

Innovation Project for Competitiveness

Program for Improving Productivity and Competitiveness

Strengthen the National Science, Technology, and Innovation System, Phase I

Support for Competitiveness

Barbados Competitiveness ProgramMultiphase Technological Transformation Program-Phase I

Program to Support Strategic Investments and Productive Transformation

Program to Support Competitiveness Policy II

Our portfolio in the Region

OUR LENDING OPERATIONS IN PIPELINE 2012

Competitiveness Enhancement Program III

Technological Innovation Program III

Innovation for Competitiveness Program

Entrepreneurship Development Program

Development of Productive Corridors

PBP Improvement Productivity and Competitiveness II

Public Offerings Program

State of Parana's Clusters Support Program

Innovation Program

Support for Science, Technology and Business Innovation II

SMEs Competitiveness Support Program