Chile is a small open economy with traditionally strong resource- based production. Over the last decade it has been the most successful Latin American country in reducing the gap in income per capita relative to the advanced countries. In order to complete this catching-up, Chile needs to focus on strengthening its innovation system and improving its low R&D intensity.

In order to do this, Chile recently created an Innovation Council for Competitiveness entrusted with the mission of proposing guidelines for a long- term, national, innovation strategy. It also introduced a specific mining tax to increase the resources available to implement this strategy.

This report assesses the current status of Chile’s innovation system and policies and identifies where improvements are most needed in order to make the most efficient use of this additional public investment.