Contacts:
In Buenos Aires: Yanina Budkin (54-11) 4316-9724
ybudkin@worldbank.org
In Washington: Gabriela Aguilar (202) 473-6768
gaguilar2@worldbank.org WASHINGTONDC, July 15, 2008- The World Bank Board of Executive Directors approved today a US$30 million loan to enhance Chile’s policy and institutional innovation framework for competitiveness through priority programs in critical areas. The initiative will help improve the international competitiveness of Chile’s economy and stimulate sustained economic growth and job creation by adding value to production and diversifying exports. It would do this by strengthening Chile’s capacity to compete as a knowledge economy. “Innovation is a top priority in Chile’s competitiveness agenda. Becoming a knowledge economy means adding value to sectors where Chile has demonstrated comparative advantages while supporting key emerging sectors,” said Pedro Alba, World Bank Country Director for Chile, Argentina, Paraguay and Uruguay. “The project supports key elements of the national innovation strategy with a strong emphasis on building robust institutional foundations.” More specifically, the project will: (i) Strengthen the Ministry of Economy’s capacity on innovation in accordance with the guidelines of the National Innovation Strategy; (ii) Strengthen Chile’s Science Base – by supporting the National Commission for Scientific and Technological Research (CONICYT) and improving the coherence, quality and relevance of research funding policy in Chile; and (iii) Stimulate technology transfer and the creation of new technology based enterprises through the Corporation for the Promotion of Production (CORFO). “Innovation is the key that has allowed countries such as Ireland or Finland to benefit from their comparative advantages and grow on a sustainable basis adding value to their endowments. It is the key to change Chile’s productive matrix and make a leap to development,” said Hugo Lavados, Minister of Economy and Chairman of the Inter-Ministerial Committee on Innovation. Due to its global reach and expertise in the innovation sector, especially with OECD and Asian countries and its capacity to adapt international standards and successful experiences to the circumstances of Chile, the World Bank is considered a strategic partner of Chile’s modernization efforts. Esperanza Lasagabaster, World Bank Task Manager for the project added “Chile is in a favorable position to focus on microeconomic reforms aimed at boosting the capacity of firms to sustain productivity growth and develop new business opportunities. International evidence indicates that half of all differences in income and growth are attributed to differences in total factor productivity generally associated with technological development and innovation. Thus, boosting Chile’s capacity to innovate needs to be at the center of its policy agenda.” The project builds on the support provided to the Government of Chile through policy advice and two prior investment projects – the Millennium Science Initiative and the Science for the Knowledge Economy Project. It will help align innovation programs to the priority clusters defined in the proposed national innovation strategy. Among the priority areas of intervention, mechanisms to transfer technology to small and medium enterprises and to promote the emergence of new knowledge-based ventures will be enhanced. The Specific Investment Loan (SIL) for US$30 million has a total maturity of 10.5 years including 6 years of grace. ### For more information on World Bank’s program in Chile, please visit:
http://www.worldbank.org/cl |
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