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Financing Innovation in Atacama, Chile,

New Delhi, December 2010

Financing Innovation in Atacama, Chile, where the money comes from?

www.ardpatacama.cl

Contents:

The ProcessFinancingAgendas and Competitivenessprograms

The Contest The Learnings

Contents:

The ProcessFinancingAgendas and Competitivenessprograms

The Contest The Learnings

The Process

Join all the parts

We have to sort We have to sort them and put them in their right place.

Government of Chile created Regional Development Agencies in its 15 regions (2006)

2008-2010 Regional Pactsand Competitive ProgramsAgendas were formulated

Implementation of Agencies wasfinanced by the Interamerican

Development Bank and theGoverrnment of Chile

In 2008 Atacama launched an Agenda constructed by a bottom up model

The Process

2010 opportunitydescentralization

2010 - 2011 ARDP new management model2011 financingand regional structure

2011 onwards 100% of empowerment and social capital are regional responsabilities.

The construction ¿Who have been participating?

The partnership. Public and privatesector involved

An strategic

partner

2008 - 2009 Agendas

We are evolving, learning

and applying governance

2010 Agenda

governance

We think of productive sectors and

applied transversal

interventions

2010

Human Factor

Endeavors

Competitive

Intelligence

1

2

Priority

Areas of improvement

Diferenciation

Productivity

Business consolidation

New opportunities

Areas fofimprovement

Product

The 2010Agenda and the Competitiveness Programs

2010 CompetitivenessAgenda Water resources

Intelligence

Energy

Environment

Public-private

Institutionality

3

Según ACUERDO N° 3/35/10.08.2009 y ratificado en ACUERDO N° 3/37/02.11.2009, ambos del Consejo Estratégico

ProductdevelopmentBusiness consolidation

Logistic

Regulation and environment

Areas of improvement

Product Positioning

Specialization

Marketing

Framework

4

Contents:

The ProcessFinancingAgendas and Competitivenessprograms

The Contest The Learnings

Year Projects Number of

beneficiaries

(enterprises)

Number of Public

Services

Public ServicesResources(USMillions)

Some numbers

(enterprises)

2008 64 4.236 11 4, 9

2009 75 9.914 13 9, 0

2010 * estimate 60 6.000 15 9,1

++8484%%20092008 2010

The Agenda Funding

Based on cluster modelIn 2010, supplied US$ 3,4 million voluntarily by public services ,

additional of legal commitments enforced by the budget law.

Reinforce the competitiveness of the companies in Atacama

The Competitiveness Programs

13 December 2010 14

Setting up coordinated actions that can improve the positioning of

companies from Atacama

Providing strategic information for companies to take individual

strategic decisions

1,6 US Millions17%

PMC’s

The Competitiveness Programs Financing

Important public support

17%

7,5 US Millions83%

Recursos vinculados directamente a PMC

Recursos vinculados Agenda 2010

Voluntary Contribution Public ServicesExtra funding agenda

The Competitiveness Programs Financing

USD 6 millions.- Articulated outside agreement (legal obligation)

Contents:

The ProcessFinancingAgendas and Competitivenessprograms

The Contest The Learnings

FIC – 2010 Innovation Fund for Competitiveness

Innovation Agenda 2009 used for three important pillars in the region:

Innovation

Agenda as an instrument of

consensus on the gaps in regional

innovation on the basis of 2010

Competiveness Agenda

Empowerment and performance

of regional relevance to the

FIC 2010: real financing of

projects

Innovate from ourselves….

Innovate from our needs...

Transformation is part of our culture

i

Age

Innovation Agenda ¿What for?

Innovate from our territory

Creating changesCreating innovation culture….

Creating space for innovation….

i enda

Dynamizing the systemDeveloping the cultureInnovating at all levels

COMPAÑÍA MINERA NEVADA

Ltda.

ASPIACOP

ASOMICO

CAMARA DE TURISMO DE

ORGANIZACIÓN TURISTICA Y

CULTURAL RUTA DE LOS

The Consensus: Private Sector partners

CALDERA

CORPORACIÓN PARA EL

DESARROLLO DE CHAÑARAL

AGRUPACIÓN DE EMPRENDEDORES

DE VALLENAR

DE LOS ESPAÑOLES

CAMARA DE COMERCIO DE

COPIAPO

The Involvement of the academy

Centro de Innovación Ambiental

To generate Innovativecompanies

What we have achieved ?

División de Innovación Ministery de Economics

To act within all thesystems,

Atacama region is dynamic, innovative andenterprising, with a diversifiedeconomy, with competitive productionsectors, and a strengthened businessnetwork of micro, small, medium and largecompanies that have managed to positionthe region by offering quality andcompetitive goods and services.

Promote Research and Innovation

The Regional Development Agenda

Innovation Agenda

Promote Research and Innovation

The Regional Innovation Agendaprovides a ground wire to thestrategy, through joint initiatives and theconstruction of concrete proposals.

TerritorialTerritorial

1. Strengthening and cultural

development of entrepreneurship.

1.1.HumanHuman FactorFactor(1) Development of training initiatives and advanced technical work for innovation.

(2) Improving capabilities along with innovativedevelopment.

(3) Training program for public officials oninnovation.

The Agenda and its priority

2. Innovative allocation of funds

according to regional needs

3. Definition of needs and gaps

of competitiveness approached

from innovation.

innovation.(4) Innovations for increasing productivity.

2.2.SustainabilitySustainability(1) Water resources.Innovations in irrigation efficiency.(2) Non renewable Energy.Surveys in wind, geo-thermal, solar and biomass.(3) Environment.Remediation of environmental liabilities.

TerritorialTerritorial

1. Strengthening and cultural

development of entrepreneurship.

33. . EndeavoursEndeavours(1) Development and dissemination of innovation.(2) Incentives and implementation of innovation within companies.(3) Inclusion of youth in developing skills andbusiness ideas.(4) Development of initiatives in support of partnership for innovation.

The Agenda and its priorization

2. Innovative allocation of funds

according to regional needs

3. Definition of needs and gaps

of competitiveness approached

from

innovation.

partnership for innovation.(5) Enhancement programs for the creation and strengthening of companies.

4.4. IntelligenceIntelligence(1) Installation of a network of competitive

intelligence surveillance technology and markets (2) Observation of technologies and markets.(3) Development and promotion of innovation.(4) Assessment of regional relevance of instrumental

support effective innovation.

56 projects

Regional empowerement of innovation

U$1,3 Million

Over US$ 12 Million

2009 / FirstAgenda, firstconsensus

2010 / 30% of FIC resourcesthrough a contest

56 projectspresented, 26 technologicaland innovativeinstitutions

$0

Ranking Factor Innovación, Ciencia y Tecnología

Orden Región Índice Factor Orden Región Índice Factor Orden Región Índice Factor Orden Región Índice Factor Orden Región Índice Factor

1 13 48,50 1 13 49,58 1 11 70,34 1 10 57,61 1 10 59,43 2 2 46,02 2 12 48,01 2 13 57,62 2 13 56,20 2 13 49,29 3 11 44,22 3 11 45,05 3 8 52,95 3 12 45,00 3 11 48,32 4 8 37,94 4 8 44,52 4 10 52,50 4 2 40,85 4 8 44,37

20081997 1999 2001 2003

To revert

4 8 37,94 4 8 44,52 4 10 52,50 4 2 40,85 4 8 44,37 5 10 31,01 5 10 42,91 5 2 38,68 5 8 40,38 5 12 43,18 6 12 29,14 6 2 42,45 6 12 34,55 6 11 35,00 6 5 41,60 7 5 28,81 7 7 40,07 7 1 30,52 7 4 34,62 7 2 39,28 8 4 26,61 8 1 37,69 8 4 26,57 8 5 33,21 8 3 34,20

9 9 22,36 9 9 28,02 9 9 25,74 9 3 29,26 9 9 29,84 10 7 18,58 10 6 22,41 10 7 25,06 10 1 29,07 10 1 26,03 11 1 18,49 11 5 21,94 11 5 24,45 11 9 23,44 11 7 25,85 12 3 16,40 12 4 19,54 12 6 24,31 12 6 21,77 12 4 24,82 13 6 7,37 13 3 14,23 13 3 15,58 13 7 20,31 13 6 16,47

Source: Subdere 2010

Contents:

The ProcessFinancingAgendas and Competitivenessprograms

The Contest The Learnings

• Public sector compromise

• Regional Council participation (political)

The learnings:

Political Commitment

• Regional Council participation (political)

• Innovation Commission Commitment

• Private sector “hope”

• ARDP

• Regional Gabinet (Agenda, PMC)

• Technological Universities

• Instruments

• Emerging Issues: Energy, Water availability

The learnings

Technical Support

• Emerging Issues: Energy, Water availability

• Industry balance - water - increasing economic development

• Regional innovation system

• Entrepreneurship

• Have much to do…

Tao Te King, Lao TseA newborn is soft and tender,A crone, hard and stiff.Plants and animals, in life, are supple andsucculent.

In death, withered and dry.So softness and tenderness are attributes oflife, and hardness and stiffness, attributes of

Keep thinking…

life, and hardness and stiffness, attributes ofdeath.

Just as a sapless tree will split and decaySo an inflexible force will meet defeat;The hard and mighty lie beneath the ground.

While the tender and weak dance on thebreeze above.

Keep applying…

Thank you

The contest

The contest