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Evolutionary Dynamics of Industrial Policy in Chile (1990–2022): State Capacity and Innovation for Endogenous Development

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  • Barra Novoa, Rodrigo

Abstract

The study examines the evolution of Chile’s industrial policy between 1990 and 2022 through the lens of state capacity, innovation, and endogenous development. In a global context where governments are reclaiming a proactive role in fostering innovation, Chile presents a paradox. It is a stable and open economy that has expanded investment in science, technology, and innovation but still faces structural barriers to turning that investment into sustainable capabilities. Drawing on the works of Mazzucato, Aghion, Howitt, Mokyr, Samuelson, and Sampedro, the research integrates evolutionary economics, public policy, and humanist ethics to assess Chile’s capacity for innovation-driven transformation. Using a longitudinal case study approach and official data, the study finds institutional progress but persistent coordination gaps, regional disparities, and a fragile culture of knowledge. It concludes that inclusive and sustainable innovation will require adaptive governance, long-term vision, and an ethical understanding of innovation as a public good.

Suggested Citation

  • Barra Novoa, Rodrigo, 2025. "Evolutionary Dynamics of Industrial Policy in Chile (1990–2022): State Capacity and Innovation for Endogenous Development," EconStor Preprints 330597, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:330597
    DOI: 10.14293/PR2199.002225.v1
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    Keywords

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    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • P42 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices

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