Peru Innovation Nation
A New Peruvian Innovation Agenda
- Building Innovative Capacity and an Innovator Workforce to Move Peru to the Next Stage of Economic Development
- Transitioning from Microenterprises to Innovation Based Entrepreneurship
- Harnessing the Power of a Cluster Driven Economic Strategy
Over the past decade, Peru has experienced exceptional economic performance
The Peruvian Innovation Challenge
- Peru has experienced exceptional economic performance over the past decade
– Grounded in a shift towards sound macroeconomic policy, openness to international markets and partners, and the establishment of a higher level of basic security
– Leveraging natural resources and endowments
- But Peru has not yet established the foundations for an innovation driven economy
- Resource led or cost based growth has natural limits.
- Peru must start setting the foundations starting today for an innovation driven, knowledge based economy.
How C AN WE BUILD
A PERUVIAN INNOVATION ECONOM
Y?
Innovative Capacity: People and Policy
Higher Education remains focused on education training, law, and administration…
Key STEM are as such
as computer science, biotechnology, and nanotechnology register at very low levels.
Innovation Capacity Agenda
- All stakeholders business, government, and university must make a much higher level of commitment to the Peruvian education system at all levels and for all Peruvians
Peru Has a Low Level of Innovation Effort
While Peru investment in technology infrastructure has lagged, recent catch up…
Peru has globally unique resources whose potential for innovation has not yet been tapped
Innovation Capacity Agenda
- Peru stakeholders business, government, and university must make a much higher level of commitment to the Peruvian education system at all levels and for all Peruvians
– The next generation must be an innovator workforce
- Both business and government must commit to significantly (and steadily) increase their financial investment in R&D and innovation
– Not government versus industry, but government plus industry
- Peru innovation investments should be focused on the unique advantages of Peru such as biodiversity, or building fundamental science and engineer
ing foundations in specialized agricultural and mining areas.
Action Item
What are you going to do to begin enhancing the Peruvian innovation environment
?
Commit your firm to a new innovation partnership
?
Fund a new generation of scientists and engineers
?
Convene a meeting of how your firm can leverage the incredible biodiversity of Peru and contribute to its preservation
?
Peru has a very large level of entrepreneurship, with a strong majority of all employment linked to microenterprises
While microenterprises are an important source of poverty reduction and employment, these enterprises lack growth capital
(and in many cases, lack access to even microfinance loans)
But suggest the potential for growth oriented entrepreneurship in Peru
…
Peru mobilizes a medium level of overall risk capital, and is dominated by large private equity investments rather than angel funding or venture capital
Building on a record of economic reform, Peru has established itself as an overall regional leader in terms of “Doing Business”
How CAN PERU TRANSITION TO INNOVATION BASED ENTREPRENEURSHI
P?
Entrepreneurial Capacity Agenda
- Peru must develop a much higher capacity for growth oriented entrepreneurship.
– Enhancing the attractiveness of entrepreneurship for educated professionals (beyond microenterprise)
– Investing in a significant expansion of risk capital
– Ensuring the overall health of business environment
- The public and private sector must collaborate to establish specific institutions and programs tailored to the strengths of each region to enhance the potential for an innovator workforce and commercializing new technologies and business processes
Action Item
What are you going to do to catalyze innovation based entrepreneurship in Peru
?
Commit your firm to be a risk capital partners in Peru moon shot fund
?
Peruvian Clusters and Peruvian Universities
- Peru’s current clusters
are based heavily on natural endowments, and have much room for further upgrading
- Even in areas with significant clusters such as Cajamarca, Arequipa, and Moquegua in mining there have historically been significant technological bottlenecks
- Though there are some strong universities universities have historically played a limited role in supporting the development of entrepreneurial firms that catalyze local clusters.
- There is a limited tradition of collaboration among actors for regional development
- There is a weak institutional capacity which could be addressed by leading Peruvian universities hampering the development of clusters.
A New Peruvian Innovation Agenda
- Building Innovative Capacity and an Innovator Workforce to Move Peru to the Next Stage of Economic Development
- Transitioning from Microenterprises to Innovation Based Entrepreneurship
- Harnessing the Power of a Cluster Driven Economic Strategy