2.01. A structural equation model of innovation: The chilean challenge

Autores: Rock T., J., Candia, C.

Palabras Clave: technological innovation, global competitiveness, science and technological framework, business technological sophistication, legal framework, development, and state policy.

 

The focus of this study is to identify main factors that affect countries´ innovation, in order to highlights main challenges that Chilean economy has to reach the development stage driven by innovation.

Structural equation models were adjusted, based on data from 148 countries ranked by the global competitiveness report (WEF, 2013). These models show that scientific and technological institutional framework and business technological sophistication have a significantly reciprocal relationship with business technological innovation.

In turn, both factors are highly correlated. Furthermore, according to business technological innovation has a significant effect on the legal framework for innovation.

Chile achieved an impressive progress in export growth, while the country scored low in science, technology, innovation and education when it is compared globally, but the country was able to increase international competitiveness.  This was possible to achieve, most likely due to the country´s rich natural resource endowment. However, literature suggests that if the country wants to increase its competitiveness, in the long term, it has to rely less on natural resources and more on technological innovations (Gates and Steane, 2009; Lall, 2000; Dunning, 1993).

In order to jump to the next development stage, driving by innovation, where developed countries are positioned, Chile will need to improve factors that enhance its technological innovation.

Government policy must make more efforts to increase quality of science and technological institutional framework and to foster business technological sophistication in order to increase business innovation and in turn, through this way to improve legal framework for innovation.