GROWTH THROUGH INNOVATION AND ENTREPRENEURSHIP: THE CHALLENGE FOR CHILE WWW.CORFO.CL Dr. Thierry de Saint Pierre Deputy Head Precompetitive Innovation tdsp@corfo.cl 13. Oktober 2010, 1/29
GENERAL INDEX CHILE and the challenges CORFO Support services for International investor Supporting Innovation and Entrepreneurship Conclusions
Chile Population 16,2 million Workforce 6,2 million GDP 2007 US$ 168.000 million (rate 5,2%) Growth estimated 5,5% (2010) and 6 % (2011) PIB per capita 2007 (e) US$ 10,000 ppp US$ 14,000 Country risk Standard & Poors A+ Fitch Rating A- Exports (FOB) 2008 MMUS 67,788 Imports (FOB) 2008 MMUS Trade Balance 2008 MMUS 52,565 15,223 FDI 2008 MMUS 16.786,9 Stock de FDI accumulated to date since 1974 MMUS 100.989,0
Free Trade Agreements, Chile has trade access to 90% of PIB World EUA Canadá UE EFTA (European Free Trade Association) (Islandia-Noruega-Suiza-Liechtenstein) Turquía China México Corea del Sur Japón Panamá Colombia Centroamérica (Guatemala-Honduras-Nicaragua-El Salvador-Costa Rica) Cuba Current In Negotiation Partial Agreements Complementary Agreements Association Agrements Perú Uruguay Paraguay Argentina Brasil Bolivia Ecuador Venezuela India Singapur Vietnam Nueva Zelanda Malasia Tailandia Brunei Australia
GLOBAL COMPETITIVENESS INDEX (Selected Countries, 2008-2009) 2009) 140 120 1 2 3 4 5 100 9 22 28 29 30 49 50 51 59 63 Factors for calculation: Macroeconomic Public Institutions Technology Laboral Market Infraestructure 80 60 67 82 40 20 87 0 Source: World Economic Forum (www.weforum.org), 2009, 131 países Chile: 1st in Latin America
Chilean competitive performance: selected factors WEF GCI 2008-2009 (Overall Ranking: 28 th ) FACTORS Macroeconomy Efficiency of labor market Efficiency of goods market Infrastructure Businesses sophistication Institutions Technological Readiness Higher Education and Training Innovation 14 17 26 30 31 Position in the ranking 37 42 50 56 80 0 73
CHALLENGES FOR CHILE Economy is growing ( between 6%-7% ) for next years. But Productivity is not growing. To continue the growth path based on more of the same will not be enough (investment in Natural ressources industry) Competitivity and innovation are systemic problems that must be addressed jointly and through a joint effort from the State and private sector.
Production Priorities PRIORITY CLUSTERS 2008-2010 Cluster products associated with Natural Resources : Mining and production chains Food Industry (processed foods, fruit, wine, olive) Aquaculture Special interest tourism Forest and Paper Industry
The Challenges for New industries Non-Conventional Renewable Energies Global Services (Offshoring) Diversified Aquaculture Astronomy Mining Technology and Services Providers Biotechnology
OUR EXPERIENCE FROM CORFO Supporting the Economic Development
CORFO, Economic Development Agency Corfo was funded in 1939 to support the economic development of Chile and has been the largest Entrepreneur in the country Created industries like the Electricity, telecoms, Forestry, water, energy, etc. Assets: U.S. $ 4,092 million. The 50% are investments in companies in which the Chilean state has participation. Staff: 800 persons approx. Budget 2009: Credits... $ MM USD $560,73 Subsidies....... $ MM USD $172,19 In 1990 it begans with programs to develop : Associativity of SMB (PROFO, PDP) Innovation and entrepreneurship (FONTEC, FDI) Participates in the creation of The National Counsil for Innovation (2006)
REGIONAL AND INTERNATIONAL OFFICES National Network of Investment Attraction 1 Central Office - Santiago Chile 14 Regional Offices International Network of Investment Attraction North America Europe Oceania EUA Spain Denmark New Zealand Italy Switzerland Germany Finland
INVESTMENT AND SERVICES TO INVESTORS Information services (Country, Region, Sector) Support in various stages of the project cycle. Access to business networks and utilities. Seeking partners for investment. Facilitating access to funding sources. Support in locating and location of land. Identification and management of investment support Special Laws of investment support
Program of Investment in High Technology: Investing more than U.S. $ 500,000 Cofinancing Lines Description Pre-Investment Studies Start-Up Facilitation Up to 60% of the total study cost with Max of U.S. $ 30,000 Up to $ 30,000 per company Human Resources Training Service Centers Up to 25% of annual gross salary of each employee, with a Max of U.S. $ 5,000 Development Centers Technology Assets Up to 50% of annual gross salary of each employee, with a Max of U.S. $ 25,000 Up to 40% of the investment in technology assets with a Max of U.S. $ 2,000,000.- per company Rental of buildings long-term Up to 40% of rental income from the first 5 years, with a Max of $ 500,000 per company Training Programs High Specialization Up to 50% of the cost of a training program, for once, with a Max of U.S. $ 100,000
CORFO Supporting Innovation and entrepreneurship
Chile: Hub of Innovation for Latin America
National Innovation Systems Pillars Culture and Broadcast Human Capital Entrepreneurship and comercialization Risk capital Technology transfer Incubation Global markets Research and Development Institutionalization 13. Oktober 2010, 17/29
InnovaChile: Supporting Innovation Between 2005 and 2008, more than 10.000 entrepreneurs, companies, and technological centers have been supported by mean of matching grants. 2010 budget for innovation and entrepreneurship of around 120 MMUS$ Supported the clusters development (Mining, Food, Tourism)
Main Innovation Areas PUBLIC INTEREST AND PRE-COMPETITIVE INNOVATION CORPORATE INNOVATION TECHNOLOGY TRANSFER INNOVATIVE ENTREPRENEURSHIP Mittwoch, 13. Oktober 2010, 19/29
Public Interest and Precompetitive Innovation Public Innovation Assets and Pre-competitive R&D (projects for 40 MMUS$ / year) Strengthen of Regional Research and Technological Capabilities Long Term Innovation Programs Aquaculture diversification, Fruit genetic Improvement, Mining Providers Dvp, R&D International centers of Excellence 8 international centers qualified Transfer and Commercialization of R&D Training Program in place with AUTM Supporting OTT Mittwoch, 13. Oktober 2010, 20/29
ProgramtoAttractInternational centers of Excellencein R&D What a country like Chile is looking for: Impacts for the Country Faster access to new technologies, know-how, and sources of applied knowledge. Contributes to the internationalization of local technological centres and institutes Strengthens the capacities of national innovation systems Directly promotes the creation of jobs for highly qualified individuals Helps to form a more stable highly specialized critical mass Incorporates new capacities for managing the knowledge, dissemination, transfer and marketing of the results in the local NIS. Fruanhofer Institute (IME) will be the first Center to get installed in Chile 21
Corporate Innovation Individual Corporate Innovation Internationalization of innovative efforts Business Platforms for innovation Management Platforms for Innovation R&D Tax Incentive Technology Consortium (20 Consortiums financed to date) Mittwoch, 13. Oktober 2010, 22/29
Technology Dissemination Technology Dissemination Program includes International Expert Consulting Technological Internship Technological Missions
Innovative Entrepreneurship Seed Capital (finance around 20 MMUS$ of entrepreneurs projetc) Pre-feasibility study Start-up 20 - Business Incubators 3 Angel Fundings Funding Spin Off IC2 U.Texas Program for training Incubators managers Start Up attracting Entrepreneurs to Chile Mittwoch, 13. Oktober 2010, 24/29
CORFO participates on the development of the venture financial Markets R& D INCUBAT ORS ANGEL CAP. HIGH VENTURE CAPITAL DEBT PRIVATE EQUITY HIGH INCOMES RISK OF THE INVERTION LOW LOW 13. Oktober 2010, 25/29 VENTURE PRIVATE EQUITY CAPITAL
Conclusions Strong Involvement with Like minded countries (Australia, New Zealand, Finland) through joint programs Copied World Best Practices Finland NSI Technology Consortiums (CRC from Autralia), Put in place Collaborations Programs with different countries: Salmon Genoma (Canada, Norway) Astronomy (EU, USA) Attracting Technologies companies to install facilities en Chile (more than 45 companies) Attracting R&D International Centers of Excellence (FGh) 13. Oktober 2010, 26/29 Attracting Entrepreneurs to Chile (START UP)
GROWTH THROUGH INNOVATION AND ENTREPRENEURSHIP: THE CHALLENGE FOR CHILE WWW.CORFO.CL Dr. Thierry de Saint Pierre Deputy Head Precompetitive Innovation tdsp@corfo.cl 13. Oktober 2010, 27/29