Chile:

an Innovation Hub in

Latinamerica

Chile has seen outstanding growth and stability during the past two decades. Today’s challenge is to continue the forward movement so that Chile can reach greater levels of technological sophistication and development to contribute to the country's consolidation of its IT, electronics, mining, aquaculture, forestry, and food industries. Chile has set the stage for development and innovation in Latin America.

Source: IMF

MAIN GOAL OF CHILEAN GOVERNMENT A developed economy by the end of the decade

79

10 11 1214 14 14 15 15 16

18 19 19

22 22 2325

2729 29 29 30

33 34 35 35

39 40

48PIB per capita 2010 (Miles de dólares, paridad de poder de compra)GDP per capita 2010 (USD PPP Thousands)

Represents 63% of world population (2010)

Bolivia

Cuba

Ecuador

MERCOSUR

Venezuela

India

P-4

European Union

Australia

Canada

Central America

China

Colombia

Korea

EFTA

U.S.A.

Japan

Mexico

Panama

Peru

Turkey

P4: Chile, New Zealand, Singapore, Brunei

EFTA: Iceland, Norway, Switzerland, Liechtenstein

FREE TRADE AGREEMENTS MARKET OF 4.2 BILLION

Agreements Signed

Agreements Negotiated

Agreements under Negotiation

TRANSFORM CHILE INTO AN INNOVATION AND ENTREPRENEURIAL HUB FOR LATAM

To achieve this Goal

- Bring new and innovative ideas to market

- Create a culture for innovation and entrepreneurship

InnovaChile of CORFO InnovaChile

@ CORFO

The Chilean Economic Development Agency, CORFO was created in 1939.

Its main purpose is to help increase innovation, entrepreneurship and competitiveness of the Chilean economy and companies.

• Improving access to long term financial resources and their managerial capabilities

• Supporting technological innovation, through InnovaChile

• Promoting foreign investment and strategic alliances

CORFO

INNOVACHILE

• Public Agency in charge of applying Chilean Innovation Policies to increase competitiveness

• Operates as a matching fund, providing grants to companies and

technological centers who submit projects (demand driven)

• Nearly 55% of the total cost of projects is financed by private companies

• The level of public financing provided by InnovaChile depends on: • Risk level • Innovation potential • Economic potential and externalities • Degree of collaborative effort

INNOVACHILE

CLIENTS: Companies - Entrepreneurs Technological Institutes Universities

SERVICES: Grants (shared costs, risk) Expert technological assistance Innovation support networks

MAIN AREAS OF INNOVACHILE

Technical and Business

Advisory Services

Technology Transfer

Corporate Innovation

Innovative Ecosystem

Chile’s Next Growth

Phase (2010-2030)

Sustainable Growth

Increased Productivity Gains

HOW ARE WE GETTING THERE?

Science & Education

Innovation & Entrepreneurship

WHERE IS CHILE GOING TO ADD VALUE?

Sustainable and Competitive Natural

Resources

Natural Laboratories (Astronomy, Marine

Bio & Energy, Seismic/Geo Studies,

Antarctica, Dessert/Solar, etc)

Agriculture and Food Industries

Collaborative/Niche for Horizontal

Techs (LifeSci, ICT, Green Tech-Renewable

Energies, etc)

HUMAN CAPITAL: Undergraduate Enrollment

Average yearly growth rate of 8% 2001-11

Source: Ministry of Education

HUMAN CAPITAL: National Postgrad Enrollment

-

1.000

2.000

3.000

4.000

5.000

6.000

-

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Masters

Total

PhD (right axis)

Number of Enrolled PostGrad Students

Over 4X in 10 years

Source: Ministry of Education

Postgrad students starting their programmes per year

PhDs Masters

Source: Conicyt

HUMAN CAPITAL: Government Scholarships

98 124

455 536

632

2007 2008 2009 2010 2011

234

327 341 349

499

2007 2008 2009 2010 2011

17

Source: Main Science and Technology Indicators (MSTI), OECD 2010. Encuesta de Innovación e I+D 2007 – 2008. División de Innovación, Ministerio de Economía.

LOW R&D INVESTMENT

0,4

1,8

2,3

0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0

Chile (2008)Mexico (2005)

Slov ak RepublicGreecePolandTurkey

South Africa (2005)Hungary

Russian FederationItaly (2006)

EstoniaPortugal

New ZealandSpain

IrelandChina

Slov eniaCzech Republic

LuxembourgNorway

NetherlandsEU27

United KingdomBelgium

CanadaAustralia (2006)

FranceOECD

GermanyDenmark

AustriaUnited States

IcelandSwitzerland (2004)

JapanFinland

KoreaSweden

Israel

App 40% private

0.5

InnovaChile’s Support for International Initiatives

• An accelerator program created by the Chilean government that seeks to attract 1,000 high-potential global startups, to bootstrap their startup using Chile as a platform to go global.

• Its goal is to foster the interaction between Chilean and global entrepreneurs to strengthen the relationship between Chile and other innovation hubs around the world.

• Seeks to support Chilean entrepreneurs to kick off their startups in a global environment helping them to accelerate their business in a world‐class incubator/accelerator.

• Oriented to place Chilean startups in different market environments around the world, providing them with the proper platform and support to globalize their business.

GLOBAL CONNECTION PROGRAM

APPLIED R&D PROGRAM

• Oriented to promote the collaboration between Chilean and foreign R&D centers, to make business and technological prospection in order to formulate associative projects of Innovation R&D

• Relevant for countries that have signed International Science and Technology Collaboration Agreements with Chile

• Finances aspects such as: - Technological prospection - International associate prospection - Technological missions - Internships - Market and legal Studies - Formulation of joint Innovation R&D projects - International Assistance

TECHNOLOGICAL CONSORTIUMS

• To promote the development of companies that generate value by aligning market needs with technological expertise, through long-term R&D projects.

• Expected results for Consortiums and its companies: o Increase in R&D investment. o Increase in sales of products and services. o Self-sustainability of the Consortiums.

• Up to 10 years and US$10 million subsidy, in

matching funds (20% cash)

• Supports the development of high technology projects with significant commercial potential.

• Subsidizes early stages development projects, with high R & D content, that seeks to reduce the risk through the development of prototypes, trials or tests and, in this way, accelerate their arrival to market.

• Up to US$1,5 million subsidy, in matching funds

HIGH TECH INNOVATION

R&D TAX CREDIT

• 35% tax credit

• Up to U$1.2mm per year (tax credit)

• Up to 50% of activities in foreign territories

• Less burocracy and red tape

INTERNATIONAL CENTERS OF EXCELLENCE 2009 • Facilitate the installation of International

Centers of Excellence in Chile.

– To create and maintain new capacities and infrastructure in applied research and tech development

– Focused in generating results, new knowledge and technological breakthroughs

– Establishing and promoting the development of local skills, through alliances with Chilean entities.

– U$20mm in 10 years per center

• This 2nd Call was opened to every sector or industry.

• Proposals tackling high impact areas for Chile’s economy were better valuated

• Projects contribute to position Chile as an innovation hub within Latam

• Institutional ICE 2.0 (non profit): – US$ 13 millions in 8 years

• Corporate ICE 2.0 (for profit): – US$ 8 millions in 4 years

INTERNATIONAL CENTERS OF EXCELLENCE 2.0

Thank you