Innovation, Competitiveness, and Development in Latin America : Lessons From the Past and Perspectives for the Future

Post-war Latin American economies have failed to close the development gap with advanced industrial countries despite more than six decades of attempted reform and undoubted economic and social progress. Two decades into the twenty-first century, there is little sign of this situation changing for the better. Compared with other emerging regions, notably East Asia, Latin America has underperformed in income, productivity, and innovation terms. All of this suggests that the time is right for a thorough assessment of why Latin America's recent pursuit of economic development has proven so elusive. Innovation, Competitiveness, and Development in Latin America provides a balanced and topical analysis of the successes and failures of development policy in post-war Latin America. Across nineteen chapters, experts in the economics and policy of Latin American development and policy identify the challenges at hand. They explore why the region is caught in a middle-income trap, where structural impediments frustrate the achievement of accelerated and sustainable growth. At the same time, potential actions are suggested for creating lasting progress. The chapters address vital issues in the region including established or emerging sources of competitive advantage and technological capability; future areas for comparative advantage; policy effectiveness to address under-investment in human capital; poor infrastructure; and uncompetitive market structures. The chapters in the volume draw on evidence from across the region, including countries such as Argentina, Chile, Brazil, and Costa Rica. The structural characteristics of economies within the region are identified and the potential implications considered of the re-primarization process witnessed in recent years. The volume concludes with a consideration of policy lessons from these countries and illuminates potential pathways for effective policy action in the region as a whole. With fresh insights grounded in the reality of modern-day Latin America, Innovation, Competitiveness, and Development in Latin America offers scholars and professionals a crucial window into Latin America's long-term developmental trajectory. Cover Innovation, Competitiveness, and Development in Latin America Copyright Contents Contributors Section I: Introduction and Context 1. Introduction Section II: Thematic Issues 2. Institutional Challenges, the Middle-​Income Trap, and the Pursuit of Global Economic Integration in Latin America 3. China and the Middle-​Income Trap in Latin America: Constraints and Opportunities 4. Development, Trajectories, and Catch-​Up: Lessons from the Latin American and Scandinavian Experiences 5. The Co-​Evolution of FDI and the Output and Export Structures of Brazil and Mexico, 2000–​2015 6. Global Value Chain–​Oriented Policies in Latin America 7. Innovation and Competitiveness: The Regional Dimension 8. The Extractive Sector and Development in Latin America: The Rising Role of Transparency in Natural Resource Governance 9. Environmental, Energy, and Sustainability Issues 10. Energy Transition in Brazil: Contributions from Technological Leapfrogging in the Sugarcane Bioethanol Sector 11. Digitalization in Latin America: A Divide in the Making? Section III: Country Experiences 12. Argentina: Building New Capabilities and Competitive Advantages in a Challenging Macroeconomic Landscape 13. Brazil: Economic Crisis, Structural Change, and Breaking Out of the Middle-​Income Trap 14. Colombia’s Growth since the 1990s: From Reform to the Risk of the Middle-​Income Trap 15. Moving up the Value Chain in Mexico: FDI, Learning, Clusters, and the Creation of New Capabilities 16. Peru and the Search for a Development Model That Works 17. Uruguay: Public Policies in a Period of Inclusive Growth without Structural Change 18. Costa Rica: The Challenge of Diversification in a Small-​Country Context Section IV: Final Remarks 19. Conclusions Index Innovation, Competitiveness, and Development in Latin America provides a balanced and topical analysis of the successes and failures of development policy in post-war Latin America. Across nineteen chapters, experts in the economics and policy of Latin American development and policy identify the challenges at hand. They explore why the region is caught in a middle-income trap, where structural impediments frustrate the achievement of accelerated and sustainable growth. At the same time, potential actions are suggested for creating lasting progress. With fresh insights grounded in the reality of modern-day Latin America, this book offers scholars and professionals a crucial window into Latin America's long-term developmental trajectory.