Geneva 2013
Annual Ministerial ReviewUnited Nations Economic and Social
Council - ECOSOC
”Science, Technology and Innovation, and the potential of culture for promoting sustainable
development and achieving the Millennium Development Goals”
Gladys Triveño Chan JanMinister of Production of Peru
National Voluntary Presentation (NVP)
1
1. Economic context of Peru – Relationship between poverty, industry and innovation.
2. Context of the Science, Technology and Innovation (STI) in Peru
3. Instruments available for the development of STI
4. The future
CONTENTS
2
1. Economic context of Peru – Relationship between poverty, industry and innovation.
2. Context of the Science, Technology and Innovation (STI) in Peru
3. Instruments available for the development of STI
4. The future
CONTENTS
3
EVOLUTION OF GPD 2000-2012 (US$)
ECONOMIC CONTEXT
42000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
0
50,000
100,000
150,000
200,000
250,000
300,000
Source: BCRP
Between 2000 and 2012, the GDP grew at an average annual rate of 5.8%, representing an increase of GDP per capita of 70.1%. This growth was driven by private investment, primarily in the mining sector, as well as by the dynamism of the export sector in a context of trade liberalization and well handled macroeconomics. These elements strengthened the domestic markets, which was reflected in a greater number of shopping centers and residential projects.
ECONOMIC CONTEXT
5
2004 2005 2006 2007 2008 2009 2010 2011 20120
10
20
30
40
50
60
70
58.755.6
49.1
42.4
37.333.5
30.827.8
25.8
EVOLUTION OF TOTAL POVERTY 2004-2012 (% OF THE TOTAL POPULATION)
Source: INEI- Encuesta Nacional de Hogares (ENAHO) 2004-2012
This growth allowed the significant reduction of total poverty from 58.7% in 2004 to 25.8% in 2012.
ECONOMIC CONTEXT
6
Fuente: BCRP, INEI
13.80% 13.80% 13.30%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2010 2011 2012
Despite this growth, the share of industry as part of GDP has not grown at the same rate, having stalled its share between 13% and 14% in recent years. This is an industry which is highly concentrated in consumer goods, with low levels of sophistication.
Source: BCRP
INDUSTRY SHARE AS PART OF GDP
RELATIONSHIP BETWEEN POVERTY AND INDUSTRY
1/ UNIDO (2010) 2/ World Bank (2009)
CountryCompetetive Industry
Perform Index 1/Poverty headcount ratio at $1,25 a day (PPP) (% of
total population) 2/Germany 0,52 0
France 0,31 0
Malasy 0,18 0
Thailand 0,17 0,37
Chile 0,07 1,35
Costa Rica 0,05 3,12
Peru 0,04 5,54
Cambodia 0,02 18,6
Less industrialized countries are those with higher levels of poverty, and vice versa.
8
Less industrialized regions of Peru are also the poorest: Apurímac, Huancavelica, Cajamarca, Huánuco, Ayacucho.
RELATIONSHIP BETWEEN POVERTY AND INDUSTRY
Poverty Share (%)
Indu
stry
Em
ploy
men
t Sha
re (%
)
Source: BCRP, INEI- Encuesta Nacional de Hogares (ENAHO) 2004-2012
POVERTY SHARE AND INDUSTRY EMPLOYMENT IN PERUVIAN REGIONS
1. Economic context of Peru – Relationship between poverty, industry and innovation.
2. Context of the Science, Technology and Innovation (STI) in Peru
3. Instruments available for the development of STI
4. The future
CONTENTS
9
10
Fuente: BID 2010 y Encuesta Nacional de Innovación en la Industria Manufacturera 2012
Suec
ia
Fran
cia
Dina
mar
ca
Alem
ania
Luxe
mbu
rgo
Hola
nda
Bélg
ica
Aust
ria
Italia
Rein
o Un
ido
Espa
ña
Noru
ega
Chile
Bras
il
Cost
a Ri
ca
Arge
ntina
Urug
uay
Pana
má
Colo
mbi
a
PERÚ
01
23
45
6
4.5
3.2
3.1
3.0
2.5
2.0
1.9
1.6
1.6
1.4
1.3
0.9 1.
2
0.6
0.2
0.2
0.2
0.1
0.1 0.1
5.6
3.6
4.2
5.2
3.3
2.6
4.3
2.8
3.8
1.2
3.5
2.8
3.6
2.2
1.6
1.2
2.6
2.5
Intensidad del gasto en I+D (como porcentaje de ventas)Intensidad del gasto en Innovación (como porcentaje de ven-tas)
Porc
enta
jeFrom global experience, it is well known that a sustainable industrialization process has one of its basis in technological innovation.
In Peru, the industry invests only 0.1% of its sales in R & D, which is reflected in a low number of patents filed by residents: 116 invention patents and 54 utility models in 2012. In Brazil, more than 4,000 patent applications are filed each year, while in countries like Japan this number is over the 300,000 applications.
RELATIONSHIP BETWEEN INDUSTRY AND INNOVATION
Intensity of R&D Expenditure (%)
Source: IADB 2010, Encuesta Nacional de Innovación en la Industria Manufacturera
GLOBAL COMPETITIVENESS INDEX 2012-2013
11
While the "global competitiveness index" ranks Peru at position 61 out of 144 countries (upper half), in the innovation pillar, the country is ranked at 117, i.e. the lowest quintile.
Source: Global Competitiveness Index Report 2012-2013
Investment in R & D is very poor: Peru invests only 0.14% of its GDP in R&D, while the Latin American average is 0.5% and the OECD countries average is 2.2%.
Main Investment in R & D is not carried out by the private sector. Investment in R&D is carried out mainly by universities, the public sector and NGOs (>
70%) with a low degree of linkage to industry. In the rest of Latin America, this investment is mainly performed by the private sector (55% on average).
The trade balance of knowledge is clearly insufficient.While exports based on primary products and natural resources in Peru have grown to 80% of total exports in the last 20 years, in countries like Colombia and New Zealand - also abundant in natural resources- this figure went from 82% and 86%, to 65% and 75%, respectively, with exports increasing in technological content.
STI INDICATORS
12
The low level of innovation is evident from the following indicators:
University-industry collaboration is low In Peru, only 11% of manufacturing firms, were associated with universities in the 2009-2011 period to carry out innovation activities. Only 2.2% were related to public research institutes.
The personnel in industry is not necessarily suitable for innovation Only 1.5% of the staff have graduate studies, mainly in management functions, but not in innovation-related functions. Only 18% are skilled technicians, and a majority of 60, are workers with only secondary education
Percentge of patent applications filed by residents is extremely low There is no culture of protection and appropriation of innovation. Patent
applications filed by residents per 100,000 inhabitants is 0.3 on average, while, for example, in Brazil this indicator is bordering 3 and in the U.S. is over 50 patent applications.
13
STI INDICATORS
Main indexed scientific pulbications (2000-2010)
STI IN PERU
142000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
0
500
1000
1500
2000
2500
3000
3500
Patent applications 1/ filed by residents 1/ (2000-2012)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
20
40
60
80
100
120
140
160
180
However, there are some improvements
Source: RICYTSource: INDECOPI
1/ Includes invention patents and utility models
Percentages of industry firms that carried out innovation activities (2009-2011)
15
65.5
34.5
Realizó actividades de innovaciónNo realizó actividades de innovación
Otro
Alcanzar regulaciones o estándares internacionales
Reducir el consumo de energía
Ampliar la gama de productos
Abrir nuevos mercados en el exterior
Reducir el consumo de materias primas e insumo
Aumentar la flexibilidad de la producción
Alcanzar regulaciones o estándares nacionales
Reducir costos de la mano de obra
Mejorar el medio ambiente, salud y/o seguridad
Aprovechar las capacidades del personal
Ampliar participación en el mercado
Aumentar la capacidad productiva
Mantener participación en el mercado
Mejorar la calidad de productos
1.7
24.5
25.2
25.8
25.9
26.6
34.1
35.7
42.6
44.3
53.9
59.8
61.3
63.6
76.7
Empresa (%)Im
pact
o
Impact of innovation activities in the firm (2009-2011)
Source: PRODUCE, INEI, BID- Encuesta de Innovación en la Industria Manufacturera 2012
STI IN PERU
Carried out innovation activitiesDid not carry out innovation activities
To improve products qualityTo maintain market share
To increase productivityTo improve market share
To take advantages of personnel capacityTo improve enviromental, health or safety conditions
To reduce labour costsTo accomplish national regulations or standards
To increase flexibility of productionTo reduce the input comsumption
To access new markets abroadTo increase product catalogues
To reduce energy comsuptionTo accomplish international regulations or starndards
Others
Firms (%)
1. Economic context of Peru – Relationship between poverty, industry and innovation.
2. Context of the Science, Technology and Innovation (STI) in Peru
3. Instruments available for the development of STI
4. The future
CONTENTS
16
Other relevant policies to support STI policies:
• Against malnutrition: social programs for reduction of malnutrition, investing in new generations with better opportunities.
• Basic Education: New Public Educator Act improves quality primary and secondary education.
• Higher Education: Scholarship Program 18, works as a catalyst for greater opportunities for youth.
• Incorporation of researchers into the public career: Creation of the "scientists’" family as a category of officials in the public career within the Civil Service Law.
• Repatriation of researchers: Repatriation of professional researchers living abroad with the aim of hiring them to work in Public Research Institutes.
RELEVANT POLICIES
PLANS AND POLICIES
18
National Agreement –
State Policy N° 20- (2002)
National Plan of Science,
Technology and Innovation 2006-
2021
National Plan of Inclusive Industrial
Development
Strategic Plan of the Ministry of
Production (2012-2016)
National Competitiveness Agenda (2012-
2013)
Includes STI axis:
They propose:
a) To increase the state support for STI through increased budget, tax incentives and other forms of financing.
b) Human capital formation and increasing number of researchers through STI education, graduate fellowships abroad, and training at technician level.
c) Technology transfer, support for innovative projects, and dissemination of intellectual property.
d) Meeting the social and economic demands at national and regional levels. Prioritization of areas of comparative advantage and leadership. Production chain. Building technology infrastructure and ICT development.
e) Environmental Sustainability.
FUNDING
19
Competitiveness and Innovation Program for Peruvian Agriculture
(INCAGRO) - Ministry of Agriculture:
US$ 60 million (2001-2009)
Avai
labl
e Fu
nds
Time
Science and Technology Program Peru-IADB (FINCYT I) -
Presidency of the Council of Ministers:
US$ 36 million (2007-2012)
Research and Development Fund for Competitiveness (FIDECOM) - Ministry of Production:
US$ 77 million (2009 - onwards)
Science and Technology Program Peru-IADB (FINCYT II) - Presidency of the
Council of Ministers: US$ 100 million (2013- onwards)
National Fund for Science, Technology and Innovation
(FONDECYT) of the National Council of Science, Technology and
Innovation (CONCYTEC): US$ 38 million (2013 -onwards)
Framework Fund for Innovation, Science and Technology
(FOMITEC) of the Ministry of Production and National Council
of Science, Technology and Innovation (CONCYTEC):
US$ 115 Million (2013 -onwards)
The State has made available STI funding to firms and universities, doubling in 2013 the funds available in the last decade.
US$ 426 MILLONES
NORMATIVE INSTRUMENTS
20
• Legislative Decree No. 1124, amending the Law on Income Tax, and allowing the deduction of expenditure on R&D (2012)
• Law No. 29987, "Act declaring of national interest the promotion of science, innovation and technology through public-private partnerships" (2012)
• Law No. 30018, "Law on the Promotion of the Use of Patent Information to Promote the Transfer of Innovation and Technology" (2013)
• Supreme Decree No. 067-2012-PCM, which ascribes the National Council for Science, Technology and Technological Innovation (CONCYTEC) to the Presidency of the Council of Ministers - PCM (2012)
• Ministerial Resolution No. 343-2012-PRODUCE, Rules of Organization and Functions of the Ministry of Production, whereby the Department of Innovation, Technology Transfer and Business Services is created and assigned to the Vice Ministry of MSE and Industry (2012)
• Technical Standards for R&D Management: Technological Surveillance Systems (2012); Requirements Management R & D (2011); Requirements of an R + D (2009); Terminology of R & D (2009)
Legal and institutional framework for the promotion of STI activities and consolidation of a national STI system:
21
Industrial Technological Innovation Committee-CINTECIN (Chaired by the National Confederation of Private Business-CONFIEP and assisted by the Ministry of Production)
National Program for Strengthening Innovation for Competitiveness (Chaired by CONCYTEC, and comprised more than 16 public and private institutions)
Business-ECI Scientific Meeting (Chaired by Academia)
Working Group of the National Competitiveness Agenda 2012-2013 (Led by the Ministry of Economy and Finance, consists of more than 10 public and private institutions)
PUBLIC – PRIVATE Sinergy
ARTI
CULA
TIO
NTriple Helix
Improved funding conditions for innovation projects when the firm is associated with a university or research institute. FIDECOM Instruments (PIPEA, PIPEI) and FINCYT instruments (PITEA, PITEI)
ARTICULATION INSTRUMENTS
They become a technology support tool for industrial development and the generation of added value.
CITE Act No. 27267 (2000)
Three public CITE: CITEvid, CITEccal, CITEmadera
13 private CITE: Agrobusiness, logistics, software, design and apparel, textile-camels, food, forest, tropical fruits, cocoa.
22
LIMA:• CITE Madera
• CITE Ccal• CITE Logística• CITE Software
• CITE Confección
PIURA:• CITE
Agroindustrial
AREQUIPA:• CITEconfecciones• CITEagrondustrial
• CITEtextil camélidos• CITEagroalimentario
ICA:• CITE Vid
SAN MARTIN:• CITE Cacao
LORETO:• CITEfrutas tropicales• CITEforestal
UCAYALI:• CITE Madera
TACNA:• CITE
Agroindustrial
SUPPORT INSTRUMENTS
Centers for Technological Innovation CITE
23
Reseach Public Institutes - IPI
National Institute of Agrarian Innovation (INIA)
Peruvian Sea Institute (IMARPE)
Research Institute of the Amazonia of Peru (IIAP)
Peruvian Institute of Nuclear Energy (IPEN)
National Institute of Health (NIH)
National Institute for Research and Training in Telecommunications (INICTEL)
Geological, Mining and Metallurgical Institute (INGEMMET)
National Geographic Institute (IGN)
Geophysical Institute of Peru (IGP)
National Commission for Aerospace Research and Development (CONIDA)
SUPPORT INSTRUMENTS
Industrial Research
Security and HealthInfrastructure and
Institutes for knowledge generation
Natural Resource Exploration and
ExploitationIMPARPE
INGEMMENT
INIA
IIAPIGN
CONIDAINICTEL
IGP INSIPEN
ITP
Created in 2012, it contributes to the increase of competitiveness of the productive sector through innovation promotion and technology transfer to firms. It incorporates 3 public CITE.
It has four specialized divisions that generate knowledge and technology.
It proposes innovation with added value approach for the industry.
24
The Technological Institute for the Production- ITP
SUPPORT INSTRUMENTS
Pesca y acuicul-
tura
Cuero, calzado y afines
Vid/Agro Industria
Madera y
muebles
Propuesta de Valor: del ITP Divisiones Especializadas sectoriales
04 Divisiones Especializadas iniciales , que
generan conocimientos y
tecnología
Proponiendo Innovaciones, con un
mismo enfoque de Valor
Fisheries and
aquaculture
Leather and footwear
WoodVID/
Agroindustry
• Transport • Telecommunications • Energy• Industrial Parks/clusters• Special treatment Zones
Infrastructure
• Technology Trasnfer Centers• Scientific and Technology Parks• Startup Ecosystem• STI Funding and tributary incentives for innovation
Technology and Innovation
• Training (productive and technical, quality and management)• Technical formation• Graduate Programs in STI
Human Capital
• Quality Institute• Productive Developmente AgencyInstitutional Redesign
Instruments of the National Plan for Inclusive Industrial Development
Sustainibility
SUPPORT INSTRUMENTS
Quality InstituteIt includes national services of metrology, acreditation and technical standars
26
New Network of Scientific and Techonological ParksIt includes the design and implementation of 50 Parks in PPP, within the implementation process of the National Plan of Inclusive Industrial Development
TO GUARANTY AN ADEQUATE TECHNOLOGICAL AND SCIENTIFIC SUPPORT INFRASTRUCTURE FOR THE DEVELOPMENTE OF STI AND OF AN
INCLUSIVE INDUSTRYNew Network of Technology Transfer Centers CETTIt includes the design and implementation of 50 CETTs in PPP, within the implementation process of the National Plan of Inclusive Industrial Development
Instruments to be implemented by the National Plan for Inclusive Industrial Development
SUPPORT INSTRUMENTS
1. Economic context of Peru – Relationship between poverty, industry and innovation.
2. Context of the Science, Technology and Innovation (STI) in Peru
3. Instruments available for the development of STI
4. The future
CONTENTS
27
STI system articulation
• Institutions and appropriate governance system for STI are consolidated.
• State Support Instruments (CITES, IPIS, etc.) are oriented to industry.
• Sustantial improvement in the level of university-industry colaboration.
STI for industry
• Industry with sophisticated services and products by application of scientific and technical knowledge.
• Innovation culture is part of the industry culture .
Consolidate the support instruments
for STI
• To consolidate, improve and expand the funding instruments.
• To get the private sector to invest in innovation.
• To consolidate a critical mass of scientists and engineers working on CTI.
Institutions / Sustainibility
FOR THE STI DEVELOPMENT
FOR THE INDUSTRIAL DEVELOPMENT
Added Value
• To sophisticate industry through innovation.
• To diversify the production base.
• To increase the number of companies.
• To reduce gaps in quality and productivity.
Productive Basis decentralized
• To boost regional economies.
• To promote private investment (domestic and foreign) in the creation of new jobs.
Industry Growth Recovered
• To alleviate the most urgent problems that plague the industry today.
• To narrow gaps on competitive referents.
• To promote the internationalization of Peruvian firms.
Institutions / Sustainibility