TECHNOLOGICAL INNOVATION

Globalization raises a series of challenges for Andean economies, making it necessary to rethink national development strategies in order to overcome dependence on technologies generated in other contexts that result in a loss of markets --even traditional ones-- by our enterprises.  This situation can be traced to the differences that exist in the capacity to generate knowledge between our countries and developed countries and its possible transformation into innovations that would help increase the value added of the goods and services produced by our enterprises.   

Small and medium-sized enterprises run the risk today of being severely crippled by a lack of competitive capacity, with the consequent destruction of the fabric of production and loss of employment, given the various and simultaneous trade negotiations that are underway to bring about this generation and transformation of knowledge by obtaining the greatest possible advantage over third parties.  To enhance SME competitive capacity, a continuous improvement is required in the quality of the products they develop, accompanied by the progressive incorporation of innovations at both the product and process levels.  As a result, we can state that sustained economic development is strongly affected by the capacity to incorporate knowledge and technological innovation into production systems as a strategic element of competitiveness.   

Market opening, therefore, imposes the need to innovate, adopt, adapt and assimilate technology as a means for confronting the challenges imposed by market competition. An innovation system is needed that will encompass the efforts of all actors involved in the development of the productive sector.  This means linking up not only the generators of new knowledge and technologies, but also entrepreneurial users and, even more so, society in general, as coparticipants, demanders and final consumers of the products and services available to them. In order to consolidate an innovation system that will enhance competitiveness, a large capacity for research and development (R&D) is needed, together with an entrepreneurial sector willing to assume the challenges to innovate by collaborating in R&D activities.

Inasmuch as the region’s exports consist basically of little value-added raw materials at the mercy of shifting demands and erratic prices, an effort must be made to give them added value by incorporating innovations, improving quality and making the production and marketing of those products and services more efficient.  Achieving and maintaining competitiveness calls, moreover, for real integration of technological capacities, both nationally and as enterprises, which should be the aim of any effort made in this direction.   

It is important to understand that an indissoluble relationship exists between innovation and competitiveness and that an effort must be made to adopt policies and take measures that will enhance the region’s competitiveness-based technological development.  It is a recognized fact that “knowledge,” of itself, does not transform economies or society, but is able to do so as a part of national or regional science, technology and innovation systems that allow for its incorporation into the production of goods and services.   

General Objective

Promote, stimulate and step up technological innovation and its incorporation into productive processes, in order to enhance the competitive capacity of small and medium-sized enterprises in different sectors, as a means to attain the standards demanded by world markets, helping in this way to overcome social inequity and to ensure the wellbeing of Andean society in general.   

In order to achieve those aims, it is necessary to:

- Promote fuller integration of and a closer interrelationship among the economic and social agents involved in technological innovation: academic centers, research and development centers, enterprises, national and local governments, financial institutions, users, and consumers.    

- Support the consolidation of National Innovation Systems and the designing of the Andean Technological Innovation Plan or Program (PAITEC).

- Promote a shared vision of concepts and of the strategies to stimulate innovation that will help make Andean society a part of the “knowledge society.”

- Conduct studies that will contribute to a better understanding of innovation processes. 

- Determine the institutional arrangements for coordinating the various economic and social agents participating in Member Country Innovation efforts, their levels of development and potentials, the scientific and technological projects underway and the development of competitiveness programs.   

- Establish an information system and database that would include statistics, macroeconomic data, and information about institutions and individuals, to be used for researching and developing new innovation and competitiveness policies and that would lead to the establishment of an Institutional Network of Innovation Programs and Centers. 

- Organize seminars, workshops and teleconferences to discuss and delve more deeply into conceptual and strategic aspects of innovation.   

- Identify opportunities for cooperation on Technological Innovation.