L. Casanova
Innovalatino, Fostering Innovation in Latin
AmericaLourdes Casanova
23 November 2011
OPEN INNOVATION
SAO PAULO
L. Casanova
Recent Publications
www.innovalatino.orgwww.globallatinas.org
http://www.iadb.org/intal/intalcdi/PE/2009/03415.pdf
L. Casanova
Agenda
1. The New Reality
2. Emerging Multinationals
3. Reverse Innovation
4. The Brazil and Latin American paradox
5. Innovalatino: Where Latin America can lead
L. Casanova
‘La década prodigiosa’
22 August 2011
L. Casanova
Agenda
1. The New Reality
2. Emerging Multinationals
3. Reverse Innovation
4. The Brazil and Latin American paradox
5. Innovalatino: Where Latin America can lead
L. Casanova
L. Casanova
Numbers are Growing: 115 = 23% (FORTUNE 2011)
RECORD IPOs 2010
Brazilian state oil company Petrobras raised $70 billion (September 2010)
General Motors$22.1 billion (November 2010)
The Agricultural Bank of China raised $22.1 billion (July 2010)
L. Casanova
GDP/companies in Fortune (2011)
0
2.000.000
4.000.000
6.000.000
8.000.000
10.000.000
12.000.000
14.000.000
16.000.000
0
20
40
60
80
100
120
140
GDP (millions ofUS$)
Companies
L. Casanova
Agenda
1. The New Reality
2. Emerging Multinationals
3. Reverse Innovation
4. The Brazil and Latin American paradox
5. Innovalatino: where Latin America can lead
L. Casanova
Reverse Innovation: Frugal
L. Casanova
NEW GEOGRAPHY OF GLOBAL INNOVATION
In Goldman Sachs 2010
L. Casanova
Innovation
• Adoption of new ideas, products, production processes,
marketing methods, and business models.
• Efficiency is not enough
• Innovation is key for countries to enhance sustainable growth and
social well-being.
• Private sector as part of the solution and NATIONAL CHAMPIONS are key
L. Casanova
Agenda
1. The new reality
2. Emerging Multinationals
3. Reverse Innovation
4. The Brazil and Latin America paradox
5. Innovalatino: Where Latin America can lead
L. Casanova
Celebrating Innovation
L. Casanova
Celebrating Innovation: Mobile Technology
0
20
40
60
80
100
120
140
Argentina
El Salva
dorOECD
Panama
Guatemala
Uruguay
Venezuela
Paraguay
ColombiaChile
Ecuador
Honduras
Brazil
Peru
Dominican Rep.
Mexic
o
Nicaragua
Bolivia
Costa Rica
Korea
Internet user Mobi le subscribers
Internet users Latin America Mobi le subscribers Latin America
Source: L. Casanova based on The World Telecommunication/ICT Indicators Database.
International Telecommunication Union. www.itu.org (2009) for InnovaLatinoa
L. Casanova
R&D Expenditure as a Share of GDPin %, 2006 or
latest available Latin America and OECD, selected countries
0,1
0,1
0,1
0,2
0,2
0,3
0,3
0,3
0,4
0,5
0,5
0,7
0,8
0,35
1,83
0,5
0,6
0,8
0,8
1
1,2
3,2
0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5
Ecuador(2003)
Paraguay(2005)
Peru(2004)
Venezuela(2005)
Colombia(2001)
Bolivia(2002)
Panama(2005)
Uruguay(2002)
Costa Rica(2004)
Argentina
Mexico(2005)
Chile(2004)
Brazil(2005)
Latin America*
OECD*
Greece
Poland
Portugal(2005)
Turkey
Hungary
Spain
Korea
Source: World Development Indicators. Compiled by OECDDev for InnovaLatino
L. Casanova
Patent Applications to European office (2005 or latest available year, by country of residence applicant)
0
1
1
1
1
1
3
6
6
10
11
79
237
27
2767
49
56
71
90
149
695
3943
0 500 1000 1500 2000 2500 3000 3500 4000 4500
Venezuela
Costa Rica
El Salvador
Guatemala
Peru
Uruguay
Ecuador
Panama
Colombia
Chile
Argentina
Mexico
Brazil
Latin America*
OECD*
Portugal
Greece
Poland
Hungary
Turkey
Spain
Korea
Source: OECD Patent Database, 2009.
Compiled by OECDDev for InnovaLatino
L. Casanova
High Technology exports as % of total
manufacturing exports (2007 or latest available)
0.1
1.2
1.3
2.1
2.6
2.9
3.1
3.5
3.5
4.5
4.7
6.4
6.6
6.7
6.7
12.4
17.1
44.7
7.2
16.5
0.4
3.8
5.2
8.2
8.6
25.2
33.5
0 10 20 30 40 50
Panama
Honduras
Dominican Rep.(2001)
Peru
Venezuela(2006)
Colombia
Uruguay
Guatemala
El Salvador
Nicaragua
Bolivia
Paraguay
Argentina
Chile(2006)
Ecuador
Brazil
Mexico
Costa Rica(2006)
Latin America*
OECD*
Turkey
Poland
Spain
Greece
Portugal
Hungary
Korea
Source : World development indicators,
compiled by OECDDev for InnovaLatino
L. CasanovaSource: The New Geography of Global Innovation Goldman Sachs 2010
L. Casanova
Agenda
1. The New Reality
2. Emerging Multinationals
3. Reverse Innovation
4. The Brazil and Latin American paradox
5. Innovalatino: Where Brazil and Latin America can lead
L. Casanova
L. Casanova
InnovaLatino
•Celebrating Innovation
• Innovation for development from an emerging market perspective
•The innovation ecosystem/country
• Institutions: FINEP (Brazil)
• Large companies: Petrobras
• SMEs: TOTVS
•Broadening types of innovation, beyond R&D and patents:
• Product: Ethanol
• Marketing (Havaianas) and branding (Peruvian cuisine)
• Business model Innovation: ‘pre-paid’ mobile, mobile applications
• Social Innovation: CDI (Brazil)
L. Casanova
Key Messages
•A national vision: government funding and leading: Mobilização Empresarial para a Inovaçao (MEI)
• Institutions (universities) + private sector + government
•Focus on certain sectors: Natural Resources, Agriculture, Tourism, IT
•A special focus on SMEs
•Balance economic innovation with social inclusion and sustainability
•Private sector needs to invest in innovation
•People: Leadership
L. Casanova
Celebrate and Inspire
• Need for supranational innovation
systems
• Internationalization as a source of
knowledge
• Tell your story: Green and ‘mobile
apps’
• Green and ‘mobile’ Olympic
Games