The Organization for Economic Cooperation and Development (OECD) issued a stark warning today regarding Chile’s economic competitiveness, labeling the country’s innovation sector as "limited." The findings suggest that despite various government initiatives, the private sector is failing to keep pace with global technological standards.
In its inaugural report titledFoundations for Growth and Competitiveness, the OECD highlighted that business expenditure on research and development (R&D) in Chile accounts for only 0.3% of the nation’s GDP. The data shows that only 17% of Chilean firms successfully introduced technological innovations, a figure that sits at less than half of the OECD average.
Structural inefficiencies in public support
The report also cast doubt on the efficacy of government-funded support programs. According to the OECD, these initiatives are currently fragmented, with overlapping objectives between various agencies and a lack of clear accountability.
"There is insufficient evidence regarding their effectiveness in incentivizing business innovation," the report stated. The organization suggested that the current model fails to provide the necessary framework for companies to modernize their operations.
Beyond R&D spending, the OECD identified critical bottlenecks in Chile’s digital infrastructure. The country lags behind other member nations in broadband penetration and the digital integration of small businesses. These infrastructure gaps, combined with a workforce that lacks advanced digital skills, hinder the adoption of new technologies across the private sector.
To improve productivity, the OECD urged the Chilean government to modernize its telecommunications licensing regime. Without a more robust digital environment, the report warns that the private sector will continue to struggle with the diffusion of modern tools and processes.
