Libro Blanco Vol I en Ingles

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TOWARDS A NATIONAL INNOVATION STRATEGY FOR COMPETITIVENESSVOLUME 1The levels of public spending –both proportional and absolute- made by innovative countries, are farhigher than in Chile, as shown by Figure 12.Public R+D spendingCountrybillions US$United States 96.7Japan 21.3Germany 17.9France 14.9United Kingdom 10.4South Korea 6.5Australia 4Sweden 2.44Austria 1.9Switzerland 1.73Finland 1.43Belgium 1.38Denmark 1.15Singapore 0.98New Zealand 0.49Chile 0.341
TOWARDS A NATIONAL INNOVATION STRATEGY FOR COMPETITIVENESSVOLUME 1II. 3 PRODUCTION DIVERSITY: GOING BEYONDThe World Bank states that the creation of dynamic sectors based on natural resources is notincompatible with the construction of new comparative advantages in mobile and high technology industries.Moreover, it is desirable that this occur, since there is evidence that production diversity –captured, forexample, through the density of exports– favours the growth of countries 23 , because as new sectors and newrelations are created, new potentialities are also created or revealed that can trigger enormous leaps forward inthe economy of a country. [see Figure 6]Therefore, the idea is not to propose a greater production diversity as a way of escaping the “naturalresource curse”, which does not actually exist, but rather of looking at the production development of thecountry strategically and understanding that, based on the static advantages provided by natural resources, thepath towards development lies in creating new dynamic advantages. First injecting knowledge to production,strengthening the existing clusters linked mainly to natural resources, and then shifting gradually to sectorsbased on a more intensive use of knowledge.Some trees block the view of the forestThe first question is why production concentration occurs and which factors make it an obstacle togrowth. A document recently published by researchers at the Centre for International Development at HarvardUniversity makes progress in both aspects 24 , using a very explicative metaphor.Its authors –Ricardo Hausmann and Bailey Klinger–represent the economic reality of a country with aforest in which some tree covered zones as well as other poorer parts can be easily seen. The taller and strongertrees –which can most easily be seen– are the strongest production sectors of the economy, which in Chile couldbe the copper mining or cellulose industries. These trees have the capacity of grouping other related sectorsaround them that end up forming large areas dense with vegetation.There is more. There is not only a production confluence around the tallest trees but there is also aneffect in which public policies and the institutional organization of the country adapts to suit them –since theyBOX 6WHY CLUSTERSThe quest to develop the KnowledgeEconomy and economic diversification in Chileby fostering existing or budding clusters (mainlylinked to natural resources) is motivated by thefact that clusters have been deemed “thefactories of competitiveness”, since they havethree characteristics:- They better target the needs of clients,which is at the heart of the competitiveadvantage, since they are organized aroundclients and the end-uses,- They create more efficient markets andhave lower transaction costs (e.g. search costs)for all the players of the cluster and, as such,they activate productivity.- They are centres of innovation,simultaneously as a result of the extreme rivalryfound in some areas and the fluid cooperationfound in others.23 Hausmann, Hwang and Rodrik (2005)24 Hausmann, Ricardo and Bailey Klinger. Structural transformation in patterns of corporative advantage in the product space. Workingpapers. Center for International Development at Harvard University. August 2006.42
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