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

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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

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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

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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