Libro Blanco Vol I en Ingles

TOWARDS A NATIONAL INNOVATION STRATEGY FOR COMPETITIVENESSVOLUME 1Production diversification: going beyondVarious studies, among others by the World Bank, provide solid evidence that the creation of dynamic sectors basedon natural resources is not incompatible with the formation of new comparative advantages in other industries. Indeed, itis desirable that this happen, since according to studies, production diversification favours economic growth.The idea is to take a strategic look at the production development of the country and by understating that forprogressing towards development based on the static advantages of natural resources, a building process of new dynamicadvantages is needed. This by injecting knowledge into our low value processed products, and also, by strengthening theexisting clusters linked mainly to natural resources. Then progressively shifting to sectors increasingly based on anintensive use of knowledge.The support for strengthening the production potential of Chilean companies proposed in this document should bereflected by an improvement in the production diversification indexes of Chile. Currently, the first 25 main exportproducts represent near 76% of total Chilean exports. This level is below 50% in the countries with twice the per capitaincome level of Chile.MARKET FAILURES AND THE ROLE OF THE STATEMaking real progress in the goals set out requires the greatest clarification possible of what duties correspond to theState and what corresponds to the private sector. The confusion of roles normally leads to overlaps, inhibitions, thewasting of resources and, ultimately, to a loss of credibility in the State and in the private sector.Our National Innovation System (NIS) has some serious organizational flaws that negatively affect its costeffectiveness.However, and fortunately, very positive experiences are found in some areas. As such, organizationalimprovements, the right incentive structure and defining the separation of roles between the private and public sectors,are essential components, as well as the appropriate supply of resources, in a healthy NIS.The State must restrict itself to a subsidiary role, which –in any case– is important, considering the multiplicity anddepth of the market and system failures that affect the innovation process. Among these, appropriability problems,information failures, the intangibility of assets, and network failures stand out. As an operational guarantee, avoidingState intervention in areas where markets work, but also the supply of public resources for innovation should strive,wherever possible, to catalyze greater efforts from the private sector.12