OECD Reviews of Innovation Policy: Chile 2007

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The OECD Reviews of Innovation Policy offer a comprehensive assessment of the innovation system of individual OECD member and non-member countries, focusing on the role of government.  A growing political awareness of the importance of innovation for the Chile’s future has recently translated into two bold decisions: the creation of an Innovation Council for Competitiveness entrusted with the mission of proposing guidelines for a long-term national innovation strategy; and the introduction of a specific mining tax to increase resources available to implement this strategy. This report assesses the current status of Chile’s innovation system and policies, and identifies where improvements are most needed in order to make the most efficient use of this additional public investment.

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Chile's Innovation Performance in an International Perspective

R&D intensity is a key input to innovation and, despite its limitations,7 one of the indicators most widely used to compare innovation activities in different countries. Chile’s total R&D intensity – the ratio of gross expenditure on research and development (GERD) to gross domestic product (GDP) – is 0.68% (2004), less than one-third of the OECD average of 2.25% (2003). At 0.31% of GDP, its business enterprise expenditure on R&D (BERD) is even weaker relative to the OECD average of 1.53%. While R&D intensity has risen steadily since the 1980s in the OECD area, spending on R&D has remained fairly stable in Chile, although data limitations call for caution when undertaking international comparisons (Table 2.1) .


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