Inter-American Development Bank Sustainable Development Department

1. Your Logo Here Inter-American Development BankSustainable Development Department STRATEGY FOR SCIENCE AND TECHNOLOGY FOR DEVELOPMENT OAS/IACD Conference: A New Consensus to Confront Poverty in the Americas, November 19, 2003 Marta Cehelsky Senior Adviser for Science & Technology martace@secondment.iadb.org

2. IDB and Science & Technology • 1962: 1st S&T loan (Peru) • 1967: Advisory Group on S&T • 1968: Operating Policy on S&T • 1994: 8th Replenishment • 1999: Institutional Strategy • 2001: Strategy for S&T for Development

3. 1967 S&T Advisory Group: Conclusions • S&T is requirement for development • Build domestic capacity • Link research to education • Support high level research centers • Connect research to needs of the region • Establish national research councils • Consider regional foundation for S&T

4. 1968 Operating Policy for Science & Technology • Create demand for S&T activities • Support higher education & research; research institutes • Promote establishment of national scientific organizations • Stem brain drain • Important areas: mapping, conservation, agricultural research • Support institutes of standards in regional framework • Support technology transfer & institutional development • Locate organizational responsibility in Education Group

5. Focus of Projects

6. Science & Technology Portfolio(in millions US $) • Current portfolio (approximate) $ 510 • Loans in the last 3 years: $ 131 • Technical Cooperations last 3 years: $ 7 • Loans in preparation: $ 136

9. Distribution of Loans by sector of Activity Sector 2002 ($) % 1961-02($) % Productive Sectors Agriculture and Fisheries 156.9 3.4 12,950.4 10.9 Industry, Mining and Tourism 497.6 10.9 12,336.9 10.4 Science and Technology 18.0 0.4 16,88.4 1.4 Physical Infrastructure Energy 127.6 2.8 16,912.2 14.3 Transportation and Communications 451.8 10.0 13,665.6 11.6 Social Sectors Sanitation 133.8 2.9 9,218.5 7.8 Urban Development 284.1 6.2 7,086.4 6.0 Education 115.0 2.5 5,108.7 4.3 Social Investment 1912.5 42.0 10,971.0 9.3 Health 5.0 0.1 2,157.7 1.8 Environment 146.4 3.2 1,669.0 1.4 Micro-enterprise 30.0 0.7 418.6 0.4 Others Reform and Modernization of the State 667.2 14.7 20,296.3 17.2 Export Financing 0.0 0.0 1,564.1 1.3 Preinvestment and Other 7.0 0.2 2,299.8 1.9 Total $ 4552.9 118,343.7

11. Principal Outcomes • Human resource development • Establishment of national science focused institutions (conicyts) • Support for laboratories, research centers • Supported collateral activities in other sectors (agriculture, environment, ICT) • Helped lay foundation for the future

12. Key Data: R&D in LAC

13. R&D as a Percentage of GDP

14. Strategy: S&T for Development 2001 “…[On] the aggregate, society does not get adequate payoff from its investment in science research because the effort is often geared to areas which do not have the corresponding technological and productive activities, and linkages between university based research and the productive sector are inadequate.”

15. Related Strategies • Higher Education • Capital and Financial Markets • Competitiveness • Environment • Agriculture • Modernization of the State • Information & Communication Technology • Small & Medium Businesses

16. S&T Strategy: Objectives • Build innovation systems & link with global knowledge economy • Diffuse & incorporate new technology into production & related processes • Increase level, effectiveness, & productivity of investments in S&T • Increase quality & quantity of trained human resources • Build linkages among components of system domestically and internationally

17. S&T Strategy: Elements • Systems approach • Increased emphasis on technology • Continued support for research & training with emphasis on critical areas • Increased support to smaller, poorer countries • Human resource development

18. IDB S&T Strategy Element 1. Systems Approach • Review and Assess national innovation systems • Improve regulatory & policy environment for innovation, enable importation of technology; strengthen capital markets, intellectual property • Strengthen delivery capacity of S&T institutions, evaluation, information management, policy coordination

19. IDB S&T Strategy Element 2. Continued Support to Scientific Research • Strong science teaching • Concentrate resources in critical fields related to installed productive capacity; problem solving approach; strengthen existing centers of excellence, establish new ones where necessary • Link supply & demand: co-financing, outreach, exchanges, new “bridging”institutions • Institutional development: autonomy, transparency, agility; competitive peer review, international collaboration, monitoring & evaluation

20. IDB S&T Strategy Element 3. Technology to raise level of private sector Investment in R&D • Technology development funds: access to resources, esp. in areas of market failures; SMEs; industry/government collaboration; matching grants • Technology development & diffusion: technology support institutions; local & regional infrastructure; tech centers, incubators • Metrics & quality control • Improved public sector relations with private sector

21. IDB S&T Strategy Element 4. Emphasis on Smaller, Poorer Countries and Region as Whole • “In the knowledge based world, strengthening human capital and related research will be as fundamental for poorer countries as for the more advanced ones.” • Identify strategic fields; build electronic networks; support regional R&D institutions; identify appropriate technologies; technology development funds; use external assessments

22. IDB S&T Strategy Element 5. Human Resource Development • Basic skills and technological literacy: improve primary and secondary education for all • Higher education: increased institutional diversity, quality of instruction, linkages; engineering education reform • Training: improve technical, vocational training, esp. with impact on innovation • Graduate study: focus on critical fields; link with centers of excellence

23. National Innovation System Academic Sector Public Sector Legal framework Institutional Network Technological services Fiscal policy Private Sector

24. S&T Strategy : Instruments • Policy Analysis & Dialogue: • Country analysis, improved monitoring & evaluation • Financial Instruments: • Technology development funds (lines of credit or grants) for product & process improvement • Expanded use of matching grants & fiscal incentives • Implementation and Monitoring : • Country by country progress & impact • Private sector role • Regional reviews Consultations with outside advisors • Adequate staffing and coordination

25. Conclusions • S&T has historically been a consistent element of IDB mission and portfolio • IDB has a current S&T Strategy that focuses on connection between R&D and economic and social development • Challenges and needs of the region will require greater effectiveness of S&T in the IDB portfolio

26. CHALLENGES • Resources • Organization • Collaborations • Integration with national development policies • Effectiveness

27. Marta Cehelsky202-623-2176martace@secondee.iadb.org Marta Cehelsky202-623-2176martace@secondee.iadb.org