Between 2001 and 2012, Latin America and the Caribbean’s (LAC) agriculture saw its best performance of the last 30 years. Given the importance of agricultural R&D investment to sustain agricultural growth in the future, this study looks at the state of agricultural R&D investment in LAC, and analyzes the role that this investment played in the performance of agriculture in recent years. This is done by developing a new approach for the estimation of knowledge stocks that allow us to obtain R&D elasticities and measures of return to R&D investment that avoid some of the major problems encountered in the literature that uses econometric methods.

The Agricultural Outlook 2019-2028 is a collaborative effort of the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization (FAO) of the United Nations. It brings together the commodity, policy and country expertise of both organisations as well ...

Given the importance of agricultural R&D investment to sustain agricultural growth in the future, this study looks at the state of agricultural R&D investment in LAC, with the goal of identifying the level of underinvestment in the region. To do this the study uses a new indicator, the ASTI Intensity Index (AII) to measure agricultural R&D intensity in Latin America and the Caribbean (LAC) and compares research intensity with that of other regions and between countries within the region. The index can be used to identify potential under investors, determine intensity gaps and quantify R&D investment needed to close this gap by comparing countries with similar characteristics. Results obtained using a sample of 100 countries including 29 LAC countries show that despite rapid growth in R&D investment after 2004, the region shows low levels of intensity and the largest R&D intensity gap when compared to other regions. Results also show large differences between countries in the region. The Southern Cone (Brazil, Argentina, Chile, Uruguay and Paraguay) is among the regions showing highest levels of research intensity globally. Low levels of R&D intensity in the region are explained mainly by countries in Central America and by Andean countries. Results also show that the intensity gap represents almost 75 percent of total R&D investment in 2012 and that the region will need to increase investment from $5 to $8.5 billion 2011 PPP to close the intensity gap.

This study proposes the use of partial least squares to determine the key parameters of the perpetual inventory method model of capital stock as a new approach to calculate research and development (R&D) knowledge stocks and R&D elasticities. This approach avoids most of the major problems encountered in the literature that lead to obtaining very high and implausible rates of return to agricultural R&D...Using this approach, we obtain an average R&D elasticity for low- and middle-income (LM) countries of 0.23 and an average rate of return to R&D investment of 6.0 percent, bigger than the average discount rate of 4.2 percent for these countries. Results show that 60 percent of LM countries in our sample are underinvesting in agricultural R&D, as they can get higher returns by investing in this activity than in activities that return the social discount rate.

This volume uses the study of firm dynamics to investigate the factors preventing faster productivity growth in Latin America and the Caribbean, pushing past the limits of traditional macroeconomic analyses. Each chapter is dedicated to an examination of a different factor affecting firm productivity - innovation, ICT usage, on-the-job-training, firm age, access to credit, and international linkages - highlighting the differences in firm characteristics, behaviors, and strategies. By showcasing this remarkable heterogeneity, this collection challenges regional policymakers to look beyond one-size-fits-all solutions and create balanced policy mixes tailored to distinct firm needs. This book is open access under a CC BY-NC-ND 3.0 IGO license.

A Brookings Institution Press and Economic Commission for Latin America and the Caribbean (ECLAC) publication In the last ten to fifteen years, the Latin American and Caribbean region has undergone the most significant transformation of economic policy since World War II. Through a series of structural reforms, an increasing number of countries have moved from closed, state-dominated economies to ones that are more market oriented and open to the rest of the world. Policymakers expected that these changes, in conjunction with lower rates of inflation and increased spending in the social area, would speed up economic growth, increase productivity, and lead to the creation of more jobs and greater equality. Have those expectations been fulfilled? Analyzing the impact of the reforms in nine countries (Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Jamaica, Mexico, Peru), this study provides a detailed picture of progress to date. At the overall regional level, the book suggests, the reforms have had a surprisingly small impact: a small positive impact on investment and growth, and a small negative impact on employment and income distribution. But at the country, sectoral, and microeconomic levels, it finds evidence of strong effects, with some units doing very well and others falling behind.