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By David M. De Ferranti

The basic components to unlocking the opportunity of know-how to hurry up fiscal development in Latin the US and the Caribbean (LAC) are making an investment in schooling, commencing up new applied sciences via overseas exchange and funding, and inspiring deepest zone study and improvement. 'Closing the space in schooling and expertise' advises Latin American and Caribbean governments to handle the region's deficits in talents and know-how, and thereby increase productiveness, finally enhancing progress customers. to shut this 'productivity hole' within the quarter, the file demands various coverage methods and techniques, counting on a country's point of improvement. It identifies 3 innovative phases in a country's technological evolution -- adoption, model, and construction -- and observes that guidelines could be designed to handle the actual demanding situations that accompany each one level. In end, 'Closing the space in schooling and know-how' argues that many nations within the Latin American and Caribbean sector were enhancing schooling and social probability administration platforms in order that they are actually able to enjoy the rewards linked to growing more desirable exchange and know-how ties with nations which are extra technologically complicated.

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Extra resources for Closing the Gap in Education and Technology (World Bank Latin American and Caribbean Studies)

Example text

Most of all, the incentives facing all actors have to be clearly aligned and a coherent, integrated innovation system must be in place. This has not happened in the Latin America and the Caribbean region. The evidence of the impact of a well-designed system is clear. Evidence presented in this report shows that patent rights, public funding, and human capital stimulate private R&D in OECD and East Asian countries. Private R&D and public R&D in turn stimulate domestic patenting and foreign transfer of technology, which contribute to the stocks of domestic and foreign-generated knowledge capital, which in turn lead to higher productivity.

In last year’s report, From Natural Resources to the Knowledge Economy, we stressed that many countries in Latin America have a comparative advantage in natural resources. For this reason, the comparison with other countries abundant in natural resources is also informative. 1 summarizes total factor productivity (TFP) growth for a sample of countries in the OECD and all developing regions for the four decades between 1960 and 2000 (Loayza, Fajnzylber, and Calderón, 2002). ) Specifically, we present the results of a Solow decomposition of output growth into the contributions of capital, labor, and productivity growth.

2 As we will discuss in chapter 4, these differences are a result of the patterns of much faster skill upgrading in East Asia and in some Scandinavian countries than in Latin America since 1960. B. 58 Natural resource–abundant countries Australia Canada Finland New Zealand Norway Sweden Note: Calculations based on annual data, so that figures for each country are GDP-weighted decade averages. Source: Authors’ calculations using data from Loayza, Fajnzylber, and Calderon (2002). Venezuelan adult is only one-half that of a Scandinavian adult.

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