Innovation system in development: The case of Peru
Pluvia Zuniga
#2016-058
Despite an exceptional economic performance achieved over the last
decade, Peru still lags behind other middle-income Latin American
economies in terms of per capita income and productivity. The Peruvian
economy remains relatively undiversified, largely dependent on natural
resources. The national innovation system is under development, weakly
integrated, and underfunded, with few incentives for its actors to
engage in innovation activities and collaborate with others. This note
summarises the current state of innovation in Peru and reviews the
capacity of the innovation system to generate new competitive advantages
in industry. It briefly discusses policies and policy gaps in research
and innovation and benchmarks national innovation competences to other
relevant economies, based on available indicators and surveys. Following
a sequential approach, a strengthened policy agenda for innovation
should tackle fundamental weaknesses of the innovation system and set
the basis for its expansion and a better articulation. Examples of
policy actions to improve research performance and business innovation
are provided. The paper concludes with suggestions for reforming the
innovation system and provides examples of policy actions.
Keywords: innovation system, development, Peru, emerging countries and
innovation policy
JEL classification: O14, L52, L60, L26, O32, O57