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ably, especially among the first two countries mentioned, South Korea (13,700) and China (1,700), but less so in Brazil (287), Argentina (103) and Mexico (179) (WIPO, 2007). Recent macroeconomic performance indicators for the region’s countries are generating positive expectations with regard to programs, organizations and objectives in the area of science, technology and innovation. Taking only Latin American countries into account, this analysis confirms the establishment of a scenario in which significant progress has been made compared to the situation a few decades ago. The primary challenge, and perhaps the primary measure of the success or failure of these policies, is the increase in innovative activity driven by firms, as this is where innovation should occur, with the growing incorporation of skilled labor (IDB, 2001). The owner of a bottling plant discusses his firm’s operations as part of an IDB program that fostered knowledge sharing among private enterprises in different countries.
Final Considerations Some studies show that the skill levels built by Latin American firms are remarkable. Several countries have been successful in improving products, processes and technologies for organiz-
ing production. Despite the fact that these technological efforts are less technically sophisticated in comparison to those of OECD members, they are associated with countless forms of learning through reverse engineering. There have been important advancements during crucial phases in the process of creating local competencies and technological knowledge, but little has been achieved in advancing toward more sophisticated stages, where new technological knowledge resides. That is precisely what the region needs: a move toward more sophisticated stages in which the scale of production is universal, not confined to the internal market, and closer to the cutting edge of science and technology (Figure 7.5). Firms that eagerly absorb knowledge and technologies through countless channels, including the combination of specialized suppliers with internal research, do indeed exist; ignoring them is a short-sighted and dangerous position to take. In some industrial sectors, innovation activity has become imperative. In activities closer to the cutting edge of technology, such as information science, software development, custom-made