Impact of innovation on production processes and its relationship with economic development in Latin America

Abstract

Using a documentary analysis methodology, this study examines the relationship between Research and Development Expenditure (R&D) and growth, contrasting endogenous development theories with the current regional reality. The results show stagnation in innovation, characterized by R&D investment of less than 1 % of GDP, the predominance of basic state research over private experimental research, and a decline in patent applications compared to Asian growth. Although human capital and academic scientific production have increased, these inputs do not translate into tangible productivity improvements due to a static economic structure. It is concluded that the region suffers from structural technological dependence, exacerbated by a lack of political will and a limited business vision. The disconnect between scientific research and productive application prevents innovation from acting as an engine of growth, perpetuating underdevelopment and the export of raw materials without added value.