Increase productivity through entrepreneurial investments in R + D+ +i

Innovation, according to the WEF, is a dimension of competitiveness in which Latin America is well behind. Private sector investment in research, development, and Innovation (R+D+i) in Latin America reaches only 30 percent compared to 70 percent in the private sector of the OECD countries. 

Companies in Europe invest 2.3 percent in R+D as percentage of their sales, compared to 0.4 percent in Latin America, according to "Thinking of Productivity", by Robert Lucas. Among the main causes for this reality are the lack of resources and instruments to finance innovation and entrepreneurship, in addiiton to a lack of coordination between companies-universities-state in favor of common agendas to promote R+D+i. 

Other causes:

• Lack of a broad and efficient regulatory framework, as well as incentives to promote investment in R+D+i and the development of intellectual property assets. 
• Few technical capacities that lead to greater productivity. 
• Absence of physical infrastructures and communications to strengthen the region's science, technology, and information systems. 

CAF has decided to play a key role in the region to close these gaps and promote R+D+i in the private sector through the Entrepreneurial Innovation Program (R+D+i), with the following objectives: 

• Strengthen the capacities for R+D+i of companies and research centers 
• Promote the coordination of the actors and the generation of R+D+i policies in the countries 
• Generate research and knowledge regarding entrepreneurial innovation  

In addition, CAF has focused on promoting the development of patentable technologies and incubation of patents through the Regional Patents Initiative Program. These and other subjects were addressed during the last days of the 2016 World Economic Forum in Davos.