Greater investments in innovation can boost economic development
Geneva, 23 November 2011 - Increased investment in science, technology and innovation (STI) in El Salvador is required in order to help advance the country´s economic performance, concludes the Science, Technology and Innovation Policy (STIP) Review of El Salvador published today by the United Nations Conference on Trade and Development (UNCTAD) in cooperation with the United Nations Economic Commission for Latin America and the Caribbean (ECLAC).
Given that financial resources are scarce, the prioritization of investments in a few selected strategic sectors or technologies (based on a foresight study of key sectors and market potential) will be necessary.
The UNCTAD review underlines the need for greater public and private investment in knowledge-generation and its use in productive activities. Coherent public policies can promote stronger productive and innovation capacities and make full use of the country´s potential.
Establishing a coordinated national strategy for the development of STI in El Salvador will be essential to help local industry compete, generate employment opportunities, improve standards of living, and promote the country´s growth and export diversification strategy.
The study also emphasizes the importance of investing in the development of human capital: (a) by enhancing the quality of education at all levels, in particular the quality of scientific and technological education; and (b) by offering incentives, such as the establishment of research fellowships and accreditation systems, to promote research in institutions of higher education.
A number of measures are suggested in the review to promote private-sector development and innovation activities - such as increasing access to venture and seed capital, promoting collaboration and technology transfer between universities, research institutes and companies, and supporting the development of business incubators.
Stronger investment in STI would raise productivity and transform the country´s productive structure toward activities with higher value added. For example, the value of El Salvador´s diversified agricultural production could be increased with stronger agroindustrial capacities. The development of such capacities requires increased investment in education and research, the promotion of innovation activities in agroindustrial businesses, and the strengthening of collaboration among producers, industry, researchers and trainers.
The country can rely on a number of assets in the sphere of science, technology and innovation that can serve as the basis for progress and successful results. These include pockets of high-quality education and research capacity, and a large untapped potential of Salvadoreans abroad.
The report identifies a number of programmes already in place in El Salvador that have brought positive results. Examples include innovation funds that encourage investment in research and development activities. The Government of El Salvador could continue building upon such successful initiatives, which have, so far, been underfunded.
The Science, Technology and Innovation Policy (STIP) Review of El Salvador was prepared at the request of the Government of El Salvador. The report examines the country´s national innovation system from a general perspective and discusses the potential for innovation in two strategic sectors: agroindustry, and information and communications technologies.
This study is part of a wider UNCTAD programme to promote the development of policymaking capacities in the area of science, technology and innovation policies.
