2017年-世界发展银行全球_Innovation_for_Productivity_Growth_in_Ecuador___Unlocking_Constraints_through_Horizontal_and_Cluster_Development_Policies_183页_3mb

Summary of "Improving firms' innovation to foster productivity and diversification" Report

Core Content

This report, authored by Luis Rubalcaba, Stefka Slavova, Maria Kim, Fernando Merino, Ernesto Franco Temple and Jessica Victor, explores the challenges and opportunities for improving innovation in Ecuadorian firms to drive productivity and economic diversification. It is part of a World Bank Group (WBG) initiative aimed at supporting the Ecuadorian government's efforts to transform its productive matrix and enhance competitiveness.

Main Views

1. Ecuador's Economic Context

• Ecuador has experienced inclusive growth over the last decade, driven by a favorable external environment and significant public sector expansion.
• The economy grew at an average of 4.2% between 2006 and 2014, above the Latin America and Caribbean (LAC) regional average.
• Poverty rates declined from 37.6% to 23.3% between 2006 and 2015, with the bottom 40% of the population seeing faster income growth (7%) than the national average (4%).
• Government spending increased from 20% to 43% of GDP, supported by high oil prices until mid-2014.

2. Current Challenges

• Ecuador now faces severe external and fiscal challenges due to falling oil prices and a strong U.S. dollar.
• Private investment has stagnated, with FDI remaining low and concentrated in oil and mining, which are not linked to broader economic growth.
• Total Factor Productivity (TFP) has explained less than one-fifth of GDP growth since the 1970s, one of the lowest ratios in Latin America.
• Services contribute less to labor productivity growth than industry, and remain below the LAC average.
• Innovation is critical to improve productivity and diversify into higher value-added products and services.

3. Innovation Imperative

• The innovation gap is not unique to Ecuador but is more urgent due to its dollarized economy and dependence on volatile natural resource exports.
• Innovation is necessary to move into more value-added products, as Ecuador's current export products are based on natural resources and lack innovation.
• Examples include the coffee sector, where productivity is significantly lower than in Brazil and Colombia, and the textile sector, where imports from Asia are increasing and most firms are declining.

4. Sectoral Analysis

• The report analyzes 59 sectors using data from the National Innovation Survey (NIS) 2013.
• It highlights the importance of understanding barriers to innovation and their relationship with innovation outcomes.
• It also provides a sectoral outlook on innovation issues, particularly in priority value chains.

5. Policy and Methodology

• The report builds on previous WBG studies and emphasizes the need for policy initiatives that support innovation.
• It provides a sectoral-level analysis, which is a first of its kind in Ecuador.
• The methodology includes both quantitative data from the NIS and qualitative insights from field work, including interviews with firms, chambers of commerce, and policy makers.

Key Information

International Comparisons

• Ecuador ranks 100 out of 128 countries in the Global Innovation Index (GII) 2016, one of the lowest in LAC.
• It ranks higher in the Global Competitiveness Report (GCR), at 86 out of 140, due to better performance in government procurement of advanced technology, innovation capacity, and university-industry R&D collaboration.
• The report compares Ecuador with Chile, the regional benchmark, and other LAC countries like Colombia, Peru, Brazil, Argentina, and Mexico.

Innovation Barriers and Outputs

• Barriers to innovation include lack of collaboration, limited public funding, and insufficient use of knowledge-intensive services.
• Despite some innovation in specific sectors (e.g., tuna-based products, software, and dairy packaging), these are exceptions.
• The report emphasizes the need for policy reforms to address these barriers and promote innovation in key sectors.

Sectoral Focus

• The report highlights seven selected sectors related to priority value chains and two service sectors.
• It provides a detailed analysis of innovation obstacles and their impacts on productivity and export potential.

Policy Recommendations

• The report concludes with a matrix of policy recommendations aimed at improving innovation, productivity, and diversification.
• These recommendations are informed by both statistical data and field-based insights.

Conclusion

• Innovation is a critical driver for Ecuador's economic growth and competitiveness.
• The report identifies the need for targeted policies to support innovation, especially in sectors with high potential for value addition.
• It underscores the importance of improving the innovation system through better regulation, increased public-private collaboration, and enhanced access to knowledge and technology.

Structure of the Report