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<strong>UNESCO</strong> <strong>SCIENCE</strong> <strong>REPORT</strong><br />

A shift towards sectorial funding of R&D<br />

Brazil established 14 sectorial funds between 1999 and<br />

2002 to channel taxes 8 levied on specific state-owned<br />

companies towards fostering industrial development in key<br />

industries and services such as oil and gas, energy, space or<br />

information technology. Argentina, Mexico and Uruguay<br />

have all reoriented their policies towards this type of vertical<br />

funding, as opposed to horizontal funding which tends not to<br />

prioritize fields. Mexico adopted 11 sectorial funds in 2003 and<br />

a 12th for sustainability research in 2008. Other examples are<br />

Argentina’s Sectorial Fund (FONARSEC, est. 2009) and the fund<br />

for software (FONSOFT, est. 2004), as well as the Innovagro<br />

Sectorial Fund for the Uruguayan agro-industry (est. 2008).<br />

Brazil launched its own Inova-Agro programme in mid-2013.<br />

Inova-Agro has since become the main tool for channelling<br />

funding to the agribusiness sector disbursed by the National<br />

Bank for Economic and Social Development (BNDES), since<br />

it accounts for over 80% of the total of circa US$ 27 million;<br />

more than four-fifths of Inova-Agro funding targets livestock,<br />

fisheries and aquaculture.<br />

8. For details, see the <strong>UNESCO</strong> Science Report 2010.<br />

Sectorial funds are one illustration of the diversity of<br />

sophisticated policy instruments (Table 7.1) promoting<br />

research and innovation in Latin America, even if these<br />

instruments have proved more effective in some countries<br />

than others. All countries face the same challenges, however.<br />

For one thing, there is a need to link endogenous research<br />

with innovation in the productive sector – this problem was<br />

already highlighted in the <strong>UNESCO</strong> Science Report 2010 and<br />

stems from the lack of long-term industrial policies (over<br />

decades) to promote private-sector innovation. There is also a<br />

need to design and develop more effective policy instruments<br />

to connect the demand and supply sides of national<br />

innovation systems. In addition, there is a weak culture of<br />

evaluation and oversight for scientific programmes and<br />

projects in most Latin American countries; only Argentina and<br />

Brazil can boast of having institutions that conduct strategic<br />

foresight studies, the Centre of Management and Strategic<br />

Studies (CGEE) in Brazil and the new Interdisciplinary Centre<br />

for Studies in Science, Technology and Innovation (CIECTI) 9 in<br />

Argentina, which opened in April 2015.<br />

9. Centro de Gestão e Estudos Estratégicos (Brazil) and Centro Interdisciplinario de<br />

Estudios de Ciencia, Tecnología e Innovación (Argentina)<br />

Table 7.1: Inventory of operational STI policy instruments in Latin America, 2010–2015<br />

Country<br />

Number of operational policy instruments<br />

by objectives and goals<br />

a b c d e f g h i j k l m<br />

Argentina 22 9 25 2 32 15 5 4 5 14 12 10 38<br />

Bolivia 2 1 1 1 8 1 1 1 4 3 1 5<br />

Brazil 15 10 31 6 6 15 5 5 5 8 4 27<br />

Chile 25 12 25 6 24 17 7 6 14 6 37<br />

Colombia 6 1 2 1 10 1 1 3 2 2 1 6<br />

Costa Rica 2 2 10 2 23 4 3 4 4 4<br />

Cuba 5 1<br />

Dominican Rep. 1<br />

Ecuador 5 4 2 2 4 1 1 4<br />

El Salvador 4 2 5 9 1 6 2<br />

Guatemala 3 6 6 2 1 4<br />

Honduras 1 1 1 2 1<br />

Mexico 16 9 13 5 6 14 6 3 4 6 5 19<br />

Nicaragua 1 1 1<br />

Panama 5 2 14 6 3 1 1 1 4<br />

Paraguay 8 1 6 5 4 1 3 2 5 3<br />

Peru 10 7 12 1 6 3 5 1 1 2 6<br />

Uruguay 13 3 11 1 13 9 2 3 3 8 4 14<br />

Venezuela 5 1 3 2 7 2 1 2<br />

Source: compiled by author on the basis of operational policy instruments collected by <strong>UNESCO</strong>’s<br />

Montevideo office (http://spin.unesco.org.uy) and categorized using the new GO➞SPIN methodology:<br />

see <strong>UNESCO</strong> (2014) Proposed Standard Practice for Surveys on Science, Engineering, Technology and Innovation<br />

(SETI) Policy Instruments, SETI Governing Bodies, SETI Legal Framework and Policies<br />

Policy instruments to:<br />

a. strengthen production of new endogenous scientific<br />

knowledge;<br />

b. strengthen the infrastructure of public and private<br />

research laboratories;<br />

c. build capacity in research, innovation and strategic<br />

planning;<br />

d. strengthen gender equality in research and<br />

innovation;<br />

e. strengthen the social appropriation of scientific<br />

knowledge and new technologies;<br />

f. develop strategic S&T areas;<br />

g. strengthen science education from primary to<br />

postgraduate levels;<br />

h. develop green technologies and technologies<br />

fostering social inclusion;<br />

i. promote indigenous knowledge systems;<br />

j. strengthen co-ordination, networking and<br />

integration processes in the research and innovation<br />

eco-system to promote synergies among the<br />

government, university and productive sectors;<br />

k. strengthen the quality of technology foresight<br />

studies to: assess the potential of high-value<br />

markets; develop business plans for high-tech<br />

companies; construct and analyse long-term<br />

scenarios; and provide consulting services and<br />

strategic intelligence;<br />

l. strengthen regional and international co-operation,<br />

networking and promotion of science and<br />

technology;<br />

m. promote start-ups in high-tech fields and new niche<br />

products and services with high added value.<br />

180

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