Technology and innovation´s impact on development

“Technology and

innovation´s

impact on

development”

Josue Fumero Delgado Chief Innovation Officer

Ministry of Science & Technology

2011 Latin American Cities

Conferences.

“Costa Rica: Building Capacity

for Global Leadership”.

June 30th, 2011

Discussion objectives

1. What is the technology sector’s role in fostering development and innovation?

2. What are the opportunities and challenges technology companies face in Costa Rica?

3. What are the private and public sectors doing to enhance the use of technology and promote innovation and entrepreneurship?

Ministerio de Ciencia y Tecnología

The 4 pillars of knowledge-based

economy

Education & Training An educated and skilled population is needed to create, share and use knowledge.

Information Infrastructure A dynamic information infrastructure-ranging from radio to the internet-is required to facilitate the effective communication, dissemination and processing of information.

Economic Incentive & Institutional Regime A regulatory and economic environment that enables the free flow of knowledge, supports investment in Information and Communications Technology (ICT), and encourages entrepreneurship is central to the knowledge economy.

Innovation Systems A network of research centers, universities, think tanks, private enterprises and community groups is necessary to tap into the growing stock of global knowledge, assimilate and adapt it to local needs, and create new knowledge.

Source: World Bank


We are living in a new world

economy

For countries in the vanguard of the world economy, the

balance between knowledge and resources has

shifted so far towards the former that knowledge has

become perhaps the most important factor

determining the standard of living - more than

land, than tools, than labor. Today's most technologically

advanced economies are truly knowledge-based.

Source: World Development Report, 1999


Technology and knowledge are

now the key factors of production

Knowledge is the basic form of capital.

Economic growth is driven by the accumulation of

knowledge.

New technological developments, rather than having one-off impact, can

create technical platforms for further innovations, and this

technical platform effect is a key driver of economic growth.

Technology can raise the return on investment, which explains why developed countries can

sustain growth and why developing countries, even

those with unlimited labor and ample capital, cannot attain

growth.


Costa Rica is on it´s way…

Knowledge-based economy

“One in which the generation and exploitation of knowledge play the predominant part in the creation of wealth”. From: United Kingdom Department of Trade and Industry, 1998.

Implication The implication of the knowledge economy is that there is no alternative way to prosperity than to make learning and knowledge-

creation of prime importance.


Costa Rica in WEF´s numbers…


Innovation leads to development

Cre

atio

n

Researching

Inventing

Designing

Diffu

sio

n

Mentoring

Networking

Collaborating

Training

Publishing Tr

an

sfo

rma

tio

n

Prototyping

Testing

Customizing

Producing

Assembling

Utiliz

atio

n

Selling

Buying

Installing

Operating

"A process through which economic or social value is extracted from

knowledge... through the creation, diffusion and transformation of ideas...

to produce new or significantly improved products or processes.“ From: The Conference Board of Canada.

Intellectual property


Technology sector’s role in fostering development and innovation

Public policy definition (PNCTI)

Priority and strategic areas definition

Industry´s sectors articulation

Gathering of information for

decision making (indicators)

Seeking external funds for R&D+i

(international loans)

Attracting FDI in R&D+i Creation and adaptation of the

institutional framework


Opportunities and challenges technology

companies face in Costa Rica

(1-2 of 6 reasons)

• + 200 multinational companies

• Ex: Intel, DHL, Acerca, Teleperformance, Dell, Experian, Baxter, P&G, HP, Hospira, BostonScientific, Western Union, Aliaxis, St. Jude Medical, IBM, Arthro-Care, Emerson and Allergan

• Sectors: electrical, electronic, automotive, life sciences (including medical devices), services (including shared services)

Proven track record

• Today: 6% of GDP to fund public education (public education is 86% of total offer)

• 2014: goal to reach 8%.

• One of the highest literacy rates in the Americas (95.8%)

• + 82% of public schools have computer labs.

• Average of 500 people per institution (one of the highest rates in the region).

• WEF: Costa Rica is #1 of LA in education system

• 2017: goal of 100% higher education students with full mastery of english

Highly trained human resources

Source: CINDE




(3-4 of 6 reasons)

• In the middle of the Americas > strategic center for the export and distribution of products to the American continent and the world.

• Trade platform now offers preferential access to 2.3 billion people - over 68% of global GDP - both through product placement in major markets such as by providing world-class services.

• Standard central time zone

• Convenient distances of connections to all major cities in America

• Ideal regional hub for manufacturing services operations for the Americas.

Strategic location

• CR ranks 2nd in LA in the rate of facilitation of international trade (WEF)

• Attractive incentives to FDI (which result primarily in some tax advantages)

• Wide range of local suppliers (helps facilitating the supply chain of international companies, reducing logistics costs and entrenching its presence in the country)

Excellent business climate

Source: CINDE




(5-6 of 6 reasons)

• Physical infrastructure that allows access on a competitive international markets,

• Open process of modernization and strengthening.

• Improvement of road infrastructure, port and airport is the priority of the current administration.

• Significant progress in modernizing the telecommunications infrastructure (new regulatory framework in telecommunications)

• 93% of its energy from renewable sources

Quality infrastructure

• Happiest country of the world (Index of Travel and Tourism Competitiveness, WEF)

• Safest country in LA (Latin Business Chronicle)

• Mission of exploiting natural resources in a sustained and respectful way with the environment

• Committed to become carbon neutral economy by the year 2021.

Excellent life quality

Source: CINDE


The importance of ITC in

knowledge-based economies

A 1995 study of the effect of software producre Microsoft on the local ecoomy revealed that each job at Microsoft created 6.7 new jobs in Washington state, whereas a job at

Boeing created 3.8 jobes (Mandel, 1997)

ICT are best regarded as the facilitators of knowledge creatinon un innovation societies (OECD, 1996)

The new economics looks at ICT

not as drivers of change but as

tools for releasing the creative

potential and knowledge

ebodied in people.

Wealth-generation is becoming more closely tied to the capacity to add value using ICT products and services


Public sector efforts promoting: technology, innovation and entrepreneurship

• Youth Talent Program:

• Technologic and Scientific Fairs.

• On line training modules.

• Youth Talent Club.

• MICIT-MIT Science Camps.

• Funding Goverment Programs

• CENIBIOT

Technology

• Master in innovation (UNA, ITCR)

• Escuela Gestores de Innovación

• Innovar es para tod@s

• Matching grants

• Other financing mechanisms

Innovation

• “Feria de ideas y Negocios” ITCR

• “Premio ideas Innovadoras UCR”

• Feria Emprendedores UNA

Entrepreneurship


Private sector efforts promoting: technology, innovation and entrepreneurship

• Intel ISEF: (Internacional Science and Engineering Fairs).

• Youth Talent Sponsors:

• Hewlett Packard-CR

• BNCR

• CINDE

• Omar Dengo Foundation

Technology

• Innovex (CICR)

• Centroamerica Innova (Cadexco)

Innovation

• YoEmprendedor

• Desafío Intel

Entrepreneurship


“Technology and

innovation´s

impact on

development”

Alejandro Cruz Molina Minister


2011 Latin American Cities

Conferences.

“Costa Rica: Building Capacity

for Global Leadership”.

June 30th, 2011

Technology and innovation´s impact on development

Education

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