Libro Blanco Vol I en Ingles

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TOWARDS A NATIONAL INNOVATION STRATEGY FOR COMPETITIVENESSVOLUME 1Given the above, in an initial stage, the policies thatseek to foster R+D in a generalized manner, normallyassociated to generic innovations, should be targeted atfostering both the demand and the supply of R+D in firms.These Horizontal Technology Policies (HTP) arecharacterized by fostering socially desirable activities in awide range of industrial sectorsessential, since this allows for redesigns to attain betterresults over time and face new objectives and new needsthat arise on the road. There is much international evidenceon the difficulties in carrying out changes of this nature.91
TOWARDS A NATIONAL INNOVATION STRATEGY FOR COMPETITIVENESSVOLUME 1ACTION RECOMENDATIONSAchieving success in the task of adding knowledge to production requires a systemic viewpoint and a new partnership combining privateentrepreneurial initiative with a public sector participation targeted at, on the one hand, ensuring the provision of public goods that support innovation;in other words, human capital (through education and training), the networks of physical and technological infrastructure and scientific research and, onthe other hand, the incentives framework and the rules of the game that favour technological development and the emergence of greater productiondiversity.The action of the State should be strictly restricted to a subsidiary role, correcting the market and system failures that affect the innovationprocess: the problems of appropriability, failures of information, intangibility of assets and network failures. With the above criteria fulfilled, theprovision of public resources for innovation should always seek to leverage greater endeavours from the private sector.The design of public policies has to take into account that all the market failures described do not occur in a static but rather in a dynamic manner.This not only requires flexible and revisable instruments, it also requires strategic decisions when facing the future challenges of the country.The action of the State must also maintain an adequate balance combining the strengths from neutral public policies with the need to incorporateselectivity criteria, which must not emerge from an arbitrary analysis nor one contaminated by interest group pressure, both for the potentialities of thenational economy and the obstacles or lags that the country faces in developing them.The country requires a human capital formation system that integrates the education of technicians and professionals and employment training,which is flexible, based on competencies, and capable of generating, diffusing and appropriating innovation, especially in sectors with competitivepotential.For this, it is determinant that the population has more people with third level education, with education focused on ensuring the quality of ourprofessionals as generators, diffusers and users of innovation.Since education is an intangible asset and the results are uncertain, the role of public funding for third level education is crucial. The social benefitof having a more educated population and the funding problems characteristic of education, open the door to the action of the State in order toguarantee access to the system to those who, while having the abilities, are excluded from third level education due to a lack of resources. Today, thatpublic support only covers (and only partially given the other costs that must be covered by students) the three poorest quintiles of the population.Furthermore, the ratio today between professionals and technicians in Chile is totally different to that found in developed countries (11 to 1), dueto an undervaluation of the returns of technical education (asymmetry of information) and the fact that public funding for technical third level educationhas only been incorporated recently.92
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Libro Blanco Vol I en Ingles

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