The Innovation System in Bolivia:Overall Perspectives

“Closing the Loop” is a project that focuses on the expectations that are linked not only to the role of science, technology and innovation (STI) in development but also to its results. Its goals are to increase the relevance and utilization of research outputs, thereby enhancing the influence of researchers, organizations and institutions on the development process. The project looks, through case studies, at the research landscape and national and sector innovation system in four countries: Bolivia, Mozambique, Tanzania and Vietnam. This contribution analyses the case of Bolivia. After 30 years of exercising a free-market economy, the socio-economic-political situation was drastically modified in 2006 into a scenario of transformation and institutional re-design, based on the conception that the co-existence of different economic paths have made indigenous local communities recognize that their past non capitalist economic relations was being substituted by a market logic, thus threatening their material and socio cultural bases. Mainly due to favourable international conditions and increased government spending, the country has experienced a high rate of economic growth and it is observed some improvement of social conditions. It is a matter of debate however whether or not the observed growth is sustainable. In spite of the positive changes the country remains one of the poorest in Latin American. The National Development Plan 2006-2011 adopted by the new Government, considered that education and STI are fundamental instruments of change and defined that their role will become operational through the organization of the national innovation system which should develop technological based solutions to social and productive demands combining modern technological advances with ancestral, local and popular “knowledges” and wisdom, with due respect of the environment. The national innovation system is weak as shown by several indicators. The causes for this situation are well known, lack of financial inputs, limited efforts of the business sector, weak human resource base, weak technology management, etc. There exists however research outputs of value, even if limited, in public and private research centres which are diffused by the way of scientific publications in indexed and refereed journals and technical reports and also outputs applied to specific economic and social developments, and in particular specific products. In recent years some private sector associations have become more active in promoting technology and innovation within their associates and are joining efforts with public and private universities. To face existing challenges, the Vice Ministry of Science and Technology has defined in 2014, after an ample debate with stakeholders, a “National Science, Technology and Innovation Plan and is conducting several activities leading to its objectives. At the same time the Executive Committee of the Bolivian University has made an in-depth analysis of the situation of STI in public universities and also defined a strategy towards 2015. The sector systems of innovation are operating with varying degrees of efficiency. In agriculture it is observed that the traditional agriculture production model has produced innovations, but it is criticized as not having valued the local “knowledges” and the wisdom of indigenous people, or the wealth of the existing biodiversity. The new policy approach taken at present takes distance with a view of innovation oriented towards competitiveness, value chains and productive specialization and tries to construct sustainable management of natural resources and the promotion and use of biodiversity based on an endogenous development vision and model. Health (and education) has always been considered a priority in Bolivia and consequently much effort has been placed on research, in particular within the university system, falling short of innovations however. The health sector innovation system is today composed of a large number of public and private organizations and an extensive research Agenda have recently been defined. Research in renewable energies has also been conducted for several years and there are already research outputs that have permitted “closing the loop” and serve as benchmarks in the sector, for both active and passive systems. Research, technology and innovation in the informal sector have not been analyzed in detail, although characterizations have been made in the studies on SMEs, and training and innovation requirements have been identified. This sector is of particular importance in the country as it is the largest creator of employment at present. In a global sector analyses, it is found that “closing the loop” has been possible when dealing on a product-by-product basis. Considering existing experiences, it is clear that selective interventions must be sought focusing on strategic areas that can help accumulate the know-how and capabilities for further sophistication. Alternative approaches are important but cannot be the sole approach as it is suggested by the proponents of the endogenous development model. An overemphasis on such model will leave out conventional approaches that have already proven to work. Science, technology and innovation policies are only effective when governments can formulate and support their implementation. In Bolivia it is clear that the main reason for the difficulty in building-up an adequate capacity for STI has been insufficient government capabilities and effectiveness, and today, as in the recent past, there is inconsistency in the political discourse and credibility problems in the national innovation system, that pose a great challenge for obtaining quality research outputs that impact on policy making or become an input to economic or social innovations. It is thus needed a stronger compromise of the Government with the national innovation system in the way of increased financial resources, better infrastructure, clearer and non-contradictory implicit policies, incentives and other suc policy instruments in this area. Research that is well conducted and of adequate quality is essential to inform and influence policy, reduce inequalities and boost social and economic development, thus leadership, funding, researchers and institutions, and the capacity to utilize research findings are as important as new discoveries and these must be enhanced. The new STI policy must be able to support the co evolution of all elements and functions of the national innovation system, should “closing the loop” becomes a practice and not the exception, as can be resumed from the extensive analyses and survey conducted under this project.