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Libro Blanco Vol I en Ingles

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TOWARDS A NATIONAL INNOVATION STRATEGY FOR COMPETITIVENESSVOLUME 1with the exception of Hong Kong, all countries with a level of developm<strong>en</strong>t the same as or above that of Chilehave higher proportional sp<strong>en</strong>ding levels on R+D, and, more significantly, already surpassed us wh<strong>en</strong> they hadsimilar developm<strong>en</strong>t levels to Chile. [See Figure 10]To achieve the goal pres<strong>en</strong>ted earlier of a per capita income level of US$25,000 within 15 years time,Chile’s R+D sp<strong>en</strong>ding should rise to 2.3% of GDP, which would require an annual increase in sp<strong>en</strong>ding of 13% until2021.An interesting tr<strong>en</strong>d observed in countries that invest strongly in R+D concerns the distribution of theinvestm<strong>en</strong>t initiative betwe<strong>en</strong> the private and public sectors. Developed countries have a high proportion ofprivate sector participation relative to the public sector. The comparable figures for Chile in 2004 were 37%private versus 53% public sp<strong>en</strong>ding 21 , but by 2021, 50% of resources should come from the private sector,reaching 1.24% of GDP (versus 0.25% in 2004), while public sp<strong>en</strong>ding should reach 0.7% of GDP (35% of the total).[See Figure 11]The low level of participation of the private sector, measured by R+D sp<strong>en</strong>ding, is evid<strong>en</strong>t in the figuresfrom the last Survey of Innovation and R+D in Chile in 2004, implem<strong>en</strong>ted on all companies, both public andprivate, from production sectors with over 2,501 UF: only 11.2 % of the <strong>en</strong>tire universe of 24,500 companiessurveyed invested in R+D.Other indicators of “inputs or activities for innovation” in the business sector, also show very low levels.An example of this is the number of establishm<strong>en</strong>ts that possess intellectual property rights (pat<strong>en</strong>ts, acquisitionrights of vegetable varieties or copyrights, not including brand names) which only reaches 10 % of the total.To add more data on the urg<strong>en</strong>t need for innovation in Chile, evid<strong>en</strong>ce is found in the literature indicatingthat there is a significant time lag betwe<strong>en</strong> making R+D sp<strong>en</strong>ding and its results in the TFP of countries 22 . Thisperiod averages four years, ev<strong>en</strong> though it can vary dep<strong>en</strong>ding on the production sector, and can range from twoyears, as in the electrical machinery and communication equipm<strong>en</strong>t industries, to five years, as in the case ofmedicines and pharmaceuticals.21 The remaining 7% comes from R+D carried out by foreigners in Chile.22 Rouvin<strong>en</strong>, P. “R&D-Productivity dynamics: Causality, lags and dry holes”, Journal of Applied Economics, vol. 5, Nº 1, pp 123-156.2002.40

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