Innovation in Emerging Markets: The Case of Latin America

Abstract

In this AIB-Insights article, we discuss the drivers, types and outcomes of innovation management and delineate the elements of an innovation framework for emerging markets focusing on Latin America. Drawing on examples from Brazil, Argentina, Mexico, Chile, Colombia and some others countries, the piece explores how innovation contributes to the region’s economic growth, job creation, increase in both Foreign Direct Investment (FDI) outward direct investment (OFDI) and exports of more tech-intensive products and services. The paper presents new types and mechanisms for fostering innovation, emphasizes the importance of the institutional environment and describes the innovation “catch-up” dynamics in the region.