MIT TR - Colombia ICT Ecosystems - Innovation Policy Report - Rpt 2 - Mar 5 2014
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MIT TR - Colombia ICT Ecosystems - Innovation Policy Report - Rpt 2 - Mar 5 2014

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"Innovation Policy Report" with recommendations for Colombian Ministry of ICT (MinTIC) [www.mintic.gov.co], Minister Diego Molano, Govt of Colombia, March 5 2014. Performed by MIT Technology Review, ...

"Innovation Policy Report" with recommendations for Colombian Ministry of ICT (MinTIC) [www.mintic.gov.co], Minister Diego Molano, Govt of Colombia, March 5 2014. Performed by MIT Technology Review, Cambridge, Mass, during August 2013 to Feb 2014. Co-authors: Erik Pages, Ellen Harpel, Burton Lee, Antoinette Matthews. Report 2 of 2 reports done for MinTIC. Project lead: Antoinette Matthews.

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    MIT TR - Colombia ICT Ecosystems - Innovation Policy Report - Rpt 2 - Mar 5 2014 MIT TR - Colombia ICT Ecosystems - Innovation Policy Report - Rpt 2 - Mar 5 2014 Document Transcript

    • GovernmentPolicyReport AnInitiativeoftheICTMinistryofColombia Published in 2014
    • TableofContents Executive Summary 1 Background and Context 10 Poverty Alleviation/Social Development 15 Competitiveness 25 ICT & Industry 41 Environment: Talent & Institution 53 T S D U ET D MinTIC Academy Connecting Innovation Supply and Demand Building ICT Talent Digital Rights Developing Regional Ecosystems Strengthening Universities Enterprise ICT Training Demand Stimulation & Discovery These key icons represent concepts and cross-cutting themes throughout the report
    • MIT TECHNOLOGY REVIEW 3GOVERNMENT POLICY REPORT Since 2010, Colombia’s Vive Digital Plan has served as a road map for transforming Colombia’s ICT landscape and introducing “technology in the life of every Colombian.” By most accounts, Vive Digital has been a great success, meeting its key objectives for improving ICT access and achieving global accolades for its impacts and innovative programming. Today, nearly every Colombian has the opportunity to use the latest ICTs and to fully participate in life as a digital citizen. When the Vive Digital plan was originally unveiled, many Colombians did not understand the potential power of ICT, or else they lacked access to key technologies, such as PCs, tablets, or smartphones. Small pockets of innovation existed, but the average Colombian was not an active user of the Internet and other ICT technologies. As such, Vive Digital rightly focused on issues of access, that is, how to ensure that Colombians had access to ICTs and their many benefits. These access programs have made progress, but we now know that simply ensuring access is not enough. Colombia still faces many challenges in terms of ICT deployment and use. Homegrown ICT capacities are fairly limited and the local industry is dominated by foreign multinationals and a tiny base of local small and medium-size enterprises (SMEs). Many SMEs have limited access to the Internet or other ICT tools. ICT-focused firms lack resources and capacity to develop new innovations or compete in global markets. A strong ICT innovation ecosystem does not yet exist and new firms lack access to skilled business service providers or to effective partners in universities, local governments, or key national agencies. Finally, and perhaps most important, Colombia, like many other countries, suffers from a dearth of ICT talent across the board, from entry-level programmers, to engineers and technicians, to skilled managers to ICT-savvy leaders in the private, non-profit, and public sectors. These new ICT investments and initiatives should not be limited to ICT-related industries alone. Under Vive Digital, important progress in addressing wider societal challenges has been made. Yet continued efforts to deploy ICT in ways that help combat poverty, create jobs, and spur competitiveness are still needed. ICT and related technologies can and should have important impacts on improving productivity and spurring innovation across the Colombian economy. The next version of Vive Digital—Vive Digital 2—seeks to address these pressing challenges. It is time to move beyond ensuring access to ICT. Now, the focus moves to deeper engagement with ICT—to use ICT as a way to improve lives, enhance competitiveness, open new markets, build wealth, and strengthen communities. Executive Summary
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW4 This report presents potential strategies, initiatives, and programs to be considered as part of MinTIC’s Vive Digital 2 Strategy. The recommendations build on the original Vive Digital framework, but move beyond to identify how ICT can help address other challenges and pressures facing Colombian society and the wider economy. The report addresses four primary focus areas: 1. Poverty Alleviation and Social Development: How can ICT help to reduce poverty in Colombia and to promote other important social development goals, such as improved health and education outcomes? 2. Competitiveness:HowcanICThelpfosteramorecompetitiveandinnovativeColombian economy? 3. ICT Industry: How can the plan help create a stronger Colombian ICT sector that contributes to added value to the economy? 4. Environment and Talent: What underlying conditions, in areas like infrastructure, regulation, talent development, and the business environment, are required to support a thriving ICT-based economy? These focus areas encompass a broad range of issues and policy challenges. Thus, this policy report touches on dozens of issue areas and includes a large number and diverse assemblage of Infrastructure Applications Services Users Colombia will be a world-class leader in the use of ICT for socioeconomic development Poverty and Social Development Competitiveness ICT Industry 4a Environment 4b Talent 1 2 3 ICTMINISTRYOFCOLOMBIA;VIVEDIGITAL2INITIATIVE National Digitization Performance Data
    • MIT TECHNOLOGY REVIEW 5GOVERNMENT POLICY REPORT policy ideas and recommendations. Its recommendations are organized in two ways—by focus and/or framework area, and by whether they are core recommendations or of a supporting nature. Core recommendations, which require significant investment or significant changes to current policies and programs, are considered top priorities for the Vive Digital 2 Strategy. Supporting recommendations tend to be more modest in scale and scope. They may require simply the continuation of current programs, or minor adjustments to current policy, or small-scale investments targeted to more specific and focused policy goals. FrameworkArea1:ICTandPovertyAlleviation/ SocialDevelopment MinTIC’s leading vision for Vive Digital 2 entails “massifying the Internet.” In other words, MinTIC is seeking to support tools, programs, and investments that help every Colombian access the latest and most up-to-date ICT technologies and services. This new ICT access can help transform lives, by bringing innovations in education, health care, justice reform, poverty alleviation, and economic development to all parts of Colombia and to all Colombians. The Vive Digital 2 Program should embrace the following initiatives, which are all designed to use ICT as a means to improve the health, education, and quality of life for all Colombians. The four items should all be priority action items in Vive Digital 2. 1. Develop a Digital Rights Package for All Colombians. These digital rights should ensure that every citizen has access to digital hardware and to key services, along with control over their personal electronic health and identity records. 2. Build New Training Platforms: Charter MinTIC Academy, Colombia’s first fully online educationandtrainingplatform.ThiseffortwillhelppositionColombiaasaworldleader in Spanish-language online education. 3. PromoteE-Health:Supportcreationofanationwidee-healthstrategyincooperationwith othernationalministries;appointaMinTICambassadorfore-healthtohelppromoteand support this effort. 4. Provide Deeper Access: Deploy dedicated wireless access points in every community inColombia.Thiseffortshouldbeaccompaniedwithsupportforsmartphonepurchases and with MinTIC’s sponsorship of “app stores” that host useful mobile apps, tools, and services. T ET
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW6 FrameworkArea2:Competitiveness Empowering all Colombians via ICT will help improve lives and promote economic development. A new push to enhance national and regional competitiveness via ICT is also needed. Today, the limited penetration of state-of-the art ICT in Colombian businesses, especially in SMEs, is a major impediment to economic growth. Industry competitiveness can be enhanced via ICTs in many ways, including: 1. Adopt a National E-Agriculture Strategy: Colombia’s agriculture sectors are global industry leaders and major employers across the country. Efforts to improve the productivity of Colombian agriculture via ICT-innovation investments can have large rippleeffectsacrosstheeconomy.MinTICshoulddevelopnewinitiatives,inpartnership withtheICTandagribusinesssectors,toprovideICTtraining,facilitatecreationofsector- specific apps, develop information content, and identify market potential for advanced ICT-agribusiness products or services that could be developed within Colombia. 2. Build ICT Capacity among SMEs: Encourage SMEs in all sectors to embrace the active use of ICT tools and technologies, via actions such as: • Offering ICT training, education and funding to deepen the ICT capability of SMEs that already use basic technology tools • Creating MinTIC-approved training and content to upgrade digital skills and encourage utilization to deepen the ICT capability of SMEs • Providing vouchers to subsidize purchase of ICT products and services • Developing applications that help SMEs to improve the efficiency and productivity of their supply chains. 3. Embrace E-Government: Formalize MinTIC as the lead organization for e-government initiatives at the national level in order to: • achieve a “whole-of-government” approach and management of a single portal for citizen services and • develop a long-term technology road map and build political support to address evolving ICT issues in government. This effort should include the establishment of a new regional center of ICT innovation for e-government to serve as a national thought leader on effective e-government strategies. 4. EmbraceOpenSource:Adoptapositiveandproactivepolicytowardsdevelopment,use, andsharingofopensourcesoftwareandrelatedcodethatwouldapplytoallgovernment levels, public health and higher education institutions. ET ET D
    • MIT TECHNOLOGY REVIEW 7GOVERNMENT POLICY REPORT FrameworkArea3:ICT&Industry Developing a more competitive, resilient, and innovative homegrown ICT sector is a primary goal of MinTIC and other key players supporting the development of Colombia’s innovation and entrepreneurship-focused ecosystems. MinTIC and its partners have already initiated several important new efforts focused on strengthening Colombia’s innovation ecosystem. These include efforts such as the Apps.co program and the recently-released Strategic Vision of the Software and Associated Services Sector. This section presents additional ideas for enhancing the competitiveness of Colombia’s emerging ICT sector. Specific suggested initiatives include the following: 1. Build regional ecosystems by investing in several initiatives that strengthen regional ICT clusters and related industries. These initiatives include: • Regional centers of ICT innovation that build connections between ICT and key regional industry clusters, with a particular focus on anchor companies • University entrepreneurship and innovation centers that strengthen university capacities to train future entrepreneurs, to commercialize technology, and to nurture regional innovation ecosystems • Proof-of-concept centers: a small number of centers focused exclusively on the commercialization of university-developed technology. 2. Support ICT-focused innovation investments at SMEs. This fund could be structured in several ways—as a pool of grant funds, as a challenge prize competition, or as an innovationvoucherprogramwherefirmscouldusepubliclybackedvoucherstopurchase services or tools on the open market. U U
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW8 FrameworkArea4:Environment:Talent&Institutions Framework Area 4 of the Vive Digital II strategy includes two major components: talent and institutions. The dearth of ICT talent, which ranges from entry-level programmers to engineers and technicians to skilled managers and ICT-savvy leaders in the private, nonprofit, and public sectors, has been identified as a barrier to achieving a digital culture and maximizing the opportunities ICT presents for overall economic competitiveness. MinTIC has organized its efforts to improve the quantity and quality of ICT technical skills and competencies around three categories: society, ICT professionals (industry and universities), and policy makers. These efforts require close partnerships with different kinds of institutions, such as national, regional and local government organizations, universities, and leading industry partners. Specific recommendations in the areas of talent and institutions include the following: 1. BuildICTTalentatallLevels:ScaleMinTIC’sICTtalentinitiativestoamassivelevelthrough a MinTIC-approved digital badging program that will be accessible to all Colombians— not just ICT professionals—and will be aimed at developing basic and advanced ICT technical skills, using the proposed MinTIC Academy as the main platform. 2. Serve Key Industry Needs: Create a program that can provide customized training for firms with demonstrated demand for workers needing ICT technical skills, working in partnership with SENA (the national apprenticeship service), ICETEX (the technical education institute, universities, or other qualified training providers. 3. GroomICT-SavvyPublicServants:IncreaseunderstandingofICTpolicyissuesamong electedofficialsatallgovernmentlevelsbyofferingnontechnical,big-pictureeventsthat address ICT topics, built around popular speakers, private sector leaders, networking, and social activities. 4. Enhance C-Level Management and ICT Expertise: Create and convene groups of governmentandprivatesectorCIOsforeducation,leadership,andprogrammanagement training to improve their ability to implement ICT solutions at the regional and municipal levels. ET ET T ET
    • MIT TECHNOLOGY REVIEW 9GOVERNMENT POLICY REPORT Supporting Recommendations* Digital rights for citizens (1) Lead organization for e-government at national level (2) Open source policy (2) Wireless access points and apps store (1) ICT innovation investments or vouchers for SMEs (2,3) MinTIC Academy (1): ICT for SMEs (2); digital badges (4); events for politicians (4); teacher- counselor training (1,4); ICT for Government curriculum (4) Regional center of ICT innovation of e-government (4) E-health strategy (1) ICT for Agribusiness (2) Regional centers of ICT innovation (3) University entrepreneurship and innovation centers (3) Proof-of-concept centers (3) Customized ICT training for companies/strategic sectors (4) CIO council (4) Product design centers (4) Data privacy policy (2) Open data policy (2) ICT purchases to favor Colombian firms (3) Tablet program for students (1) Smart cities policy (2) Entrepreneur in residence (3) Potential for mobile banking (1) ICT for logistics summit (2) Regional ICT strategy implementation (2) Outreach: TEDx, civic hacking (1) Prize for e-education/ entrepreneurship (1) Open data communities of practice (2) Investor networks (3) MinTIC Policy Lead MinTIC is the national leader to craft poli- cies that will affect all Colombians and all government agencies. MinTIC Programs MinTIC creates, finances, and manages these programs inter- nally; they do not require external partnerships to implement. MinTIC Lab MinTIC initiatives for which MinTIC must work through partners, are outward-fac- ing, and require external resources or agreements to achieve objectives. “Seat at the Table” Other organizations (including other central government ministries) already have primary responsibility for achieving the socioeconomic objectives related to these recommendations, but MinTIC brings ICT to the table to improve their outcomes. Building the Academia- Government-Industry Links MinTIC facilitates and/or bro- kers these relationships that are created in the service of broader ICT and socioeco- nomic development objectives. Core Recommendations* (Framework areas are noted in parentheses) MatrixofRecommendations/InstitutionalApproach
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW10 Since 2010, Colombia has enjoyed a strong period of economic growth and prosperity. These achievements stem from multiple causes, but smart public policies have played an important role. In the field of information and communications technologies (ICT), the Colombian government’s Vive Digital Plan has been an essential driving force. Led by the Ministry of Information and Communications Technologies (MinTIC) and its chief minister, Diego Molano Vega, Vive Digital sought to transform Colombia’s ICT landscape by introducing “technology in the life of every Colombian.” The original Vive Digital plan set three broad goals for 2010-2014:1 1. Triple the number of municipalities connected to the information superhighway 2. Connect 50 percent of homes and 50 percent of SMEs to the Internet 3. Quadruple the number of Colombian broadband Internet connections to achieve a target of 8.8 million broadband Internet connections in 2014. As the 2014 completion date of the original Vive Digital plan approaches, nearly all the plan’s core objectives have been met. Today, nearly every Colombian has the opportunity to use the latest ICTs and to participate fully in life as a digital citizen. Colombia’s outstanding ICT programs have been recognized around the globe by organizations such as the Inter-American Development Bank (IDB), the Organization for Economic Cooperation and Development (OECD), the Global Telecommunications Conference, and the World Summit on the Information Society. When the Vive Digital plan was originally unveiled, many Colombians did not understand the potential power of ICT, or lacked access to key technologies, such as PCs, tablets, or smartphones. Small pockets of innovation existed, but the average Colombian was not an active user of the Internet and other ICT technologies. As such, Vive Digital rightly focused on issues of access, that is, how to ensure that Colombians had access to ICTs and their many benefits. This work took multiple forms—from investments in core infrastructure (for example broadband, and submarine cables) to major deployment initiatives, like the expansion of MinTIC’s Computers for Education effort. 1 For background, see Diego Molano Vega, “Colombia’s Digital Agenda: Successes and the Challenges Ahead,” in The Global Information Technology Report 2013, (Davos, Switzerland: World Economic Forum: 2013). Background and Context
    • MIT TECHNOLOGY REVIEW 11GOVERNMENT POLICY REPORT SOURCE:BOOZ&COMPANY These access programs have made progress, but we now know that simply ensuring access is not enough. We must continue to improve access where it is still a problem, but we must go beyond that. For MinTIC, helping people to use ICT as a path to prosperity and economic development is a core mission. We must empower people to effectively use and benefit from ICT. This section will treat in detail approaches that can help Colombians use ICT to better their lives. Continued efforts to promote access and digital culture must remain top priorities and should be accompanied by a comprehensive rethinking of digital rights for Colombians. Finally, we will address three core areas: education, health, and financial literacy and empowerment. Successful new initiatives in each of these areas will make important contributions to providing new ICT tools and services for all Colombians. The range of digitization scores for 150 countries shows that 65 countries are still in the constrained stage; 19 are emerging, 28 are transitional, and 38 have achieved advanced levels of ICT adoption and use. Africa Asia/Pacific/Oceania Middle East South and Central America/Caribbean Europe North America STAGE: Constrained SCORE: Less than 25 Advanced 40 and higher Emerging Transitional 30 to 39.9 26.9 Panama Azerbaijan Antigua & Barbuda Botswana Trinidad & Tobago Armenia China Ecuador Bosnia Georgia Indonesia Brunei Tunisia Thailand Algeria 23.8 37.9 Estonia Ukraine Cyprus Bulgaria Croatia Latvia Uruguay Oman Argentina Serbia Macao Iran Philippines Bahrain Colombia 31.7 23.8 Kazakhstan Guyana South Africa Belize India Egypt Fiji Gabon El Salvador Paraguay Pakistan Suriname Dominican Rep. Guatemala Namibia 20.2 20.0 Aruba Moldova Sri Lanka Bolivia Kyrgyzstan Honduras Morocco Bhutan Cape Verde Angola Syria Ghana Zambia Nigeria Cambodia 13.0 12.9 Bangladesh Vietnam Cote d'Ivoire Swaziland Vanuatu Kenya Uzbekistan Uganda Iraq Nepal Cuba Djibouti Senegal Laos Burundi 8.9 8.1 Benin Sao Tome Mozambique Cameroon Togo Yemen Rwanda Mali Lesotho Afghanistan Madagascar Burkina Faso Niger Comoros Ethiopia 1.9 (LOWEST SCORE) (HIGHEST SCORE) 63.7 Norway Iceland Korea Hong Kong Switzerland U.S. Luxembourg Taiwan Canada Israel Denmark Japan U.K. Sweden Finland 52.2 52.0 Australia Belgium Singapore France Portugal Germany Austria Spain Italy Ireland Netherlands Czech Republic Russia Romania Slovakia 43.7 43.6 UAE Greece Poland Hungary Belarus Slovenia New Zealand Lithuania Chile Malaysia Mauritius Saudi Arabia Qatar Malta Kuwait 38.0 31.6 Montenegro Turkey Mexico Barbados Seychelles Jordan Lebanon Mongolia Costa Rica Brazil Peru Macedonia Saint Lucia Albania Venezuela 27.1 Emerging 25 to 29.9 Components of the Digitization Score National Digitization Performance Data
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW12 The steps beyond access programs are referred to by many researchers as digitization, that is, efforts that measure the ability to use and benefit from ICT, not just have access to it. A shift to these strategies makes great sense, because the connections between digitization and prosperity are very strong. A recent Booz Allen Hamilton global study looked at these connections in 150 nations.2 (Figure 1 shows performance rankings.) The study found that when a country improved its digitization score by 10 points, its GDP increased by 0.50 to 0.62 percent. But if a country improved its Internet access score by 10 points, GDP grew by only 0.16 percent.3 Not surprisingly, the research found that the most advanced economies also had the most advanced digital economies as well. However, the researchers further noted that the impacts of digitization accelerate as a nation becomes more “digitized.” A “virtuous cycle” ensues where the impacts of digital development have ever larger ripple effects in new jobs, prosperity, and new innovations. The original Vive Digital plan has produced enormous achievements. Key plan outcomes include the following: n 96 percent of Colombia is now connected to optical fiber networks. n Every Colombian municipality has high-speed Internet access. n Colombians are getting connected. Since 2010, household Internet connections grew by 94 percent and small business connections jumped 185 percent. n 746 thousand computers and tablets have been delivered to public schools. n More than 1.2 million students are now connected to the Internet in school. While important improvements in ICT access have been achieved, Colombia still faces many challenges in terms of ICT deployment and use. Homegrown ICT capacities are fairly limited and the local industry is dominated by foreign multinationals and a tiny base of local small and medium-size enterprises (SMEs). Most traditional SMEs have little or no access to the Internet or other ICT tools. ICT-focused firms often lack the resources and capacity to develop new innovations or compete in global markets. A strong ICT innovation ecosystem does not yet exist and new firms lack access to skilled business service providers or to effective partners in universities, local governments, or key national agencies. Finally, and perhaps most important, Colombia suffers from a dearth of ICT talent across the board, from entry-level programmers to engineers and technicians to skilled managers to ICT-savvy leaders in the private, nonprofit, and public sectors. 2 Bahjat El-Darwiche, Milind Singh, and Sandeep Ganediwalla, “Digitization and Prosperity,” Strategy + Business, Autumn 2012 3 Ibid, p. 6
    • MIT TECHNOLOGY REVIEW 13GOVERNMENT POLICY REPORT The next version of Vive Digital—Vive Digital 2—seeks to address these pressing challenges. It is time to move ahead. Now, the focus moves beyond ensuring access to ICT to deeper engagement—as a way to improve lives, enhance competitiveness, open new markets, build wealth, and strengthen communities. Achieving these deeper impacts will require reorientation of policies and the introduction of new programs and initiatives, which will be detailed throughout the report. We will also introduce several key underlying (and cross-cutting) themes that govern all of these new efforts. Underlying themes include: n Building Talent across the Spectrum: Policies must help Colombians use ICT better at all levels—in business, in careers, in government, in education, and in their personal lives. We must establish short and long-term programs to build enough talent to address the market needs that the right policies are going to create. n Developing Ecosystems of Entrepreneurship and Innovation: Effective ecosystems depend on close collaborations across sectors and regions. MinTIC seeks strong partners who can join in nurturing a new culture of collaboration. Businesses and universities must also commit to this and embrace partnerships across all of the framework areas. n Bringing ICT to Business: We need to ensure that all businesses, especially SMEs and industries, can effectively deploy and use ICT. n Building on Regional and City Assets: Where possible, ICT policies should be tailored to capitalize on unique and competitive assets in Colombia’s diverse regions and cities, such as local industry clusters or strong local research capacities. n Connecting Supply and Demand for Innovation: Develop new tools and policies that help Colombians develop new ICT technologies and startups, and that create demand for such services from individuals, households, and businesses. n Building Digital Culture in New Ways: Develop scalable platforms that help promote ICT on a massive scale.
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW14 TheViveDigital2Framework Planning for Vive Digital 2 has been guided by a framework designed to help guide the policy making process. This framework portrays the primary goals of the Vive Digital 2 project, which seeks to identify how ICT can help address other challenges and pressures facing Colombian society and the wider economy. It rests on four primary focus areas: 1. Poverty Alleviation and Social Development: How can ICT help to reduce poverty in Colombia and to promote other important social development goals, such as improved health and education outcomes? 2. Competitiveness: How can ICT help foster a more competitive and innovative Colombian economy? 3. ICT Industry: How can the plan help create a stronger Colombian ICT sector that contributes to added value to the economy? 4. Environment and Talent: What underlying conditions, in areas like infrastructure, regulation, talent development, and the business environment, are required to support a thriving ICT-based economy? This policy report is organized around the Vive Digital 2 framework. Each area is discussed and assessed separately, with each section concluding with a series of recommendations for action under the proposed Vive Digital 2 plan. We conclude with a final section that summarizes all the policy recommendations and also includes additional recommendations for addressing key organizational and implementation issues.
    • Poverty Alleviation/ Social Development IN THIS SECTION Overview Colombia as a Global ICT Leader: Embracing the Digital World ICT for Education ICT for Health ICT for Financial Literacy and Empowerment MinTIC’s leading vision for Vive Digi- tal 2 entails “massifying the Internet.” In other words, MinTIC is seeking to sup- port tools, programs, and investments that help every Colombian access the most up-to-date ICT technologies and services. This new ICT access can help transform lives, by bringing innovations in educa- tion, health care, poverty alleviation, and economic development to all parts of Colombia and to all Colombians. The Vive Digital 2 Program should embrace the following initiatives, which are all designed to use ICT as a means to improve the health, education, and quality of life for all Colombians. Several core recommendations war- rant top priority focus and attention. Additional supporting recommendations are also presented. STUARTBRADFORD
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW16 Poverty Alleviation/Social Development S D Core Recommendations These four items are priority action items in Vive Digital 2: 1. Develop a digital rights package for all Colombians. These digital rights should ensure that every citizen has access to hardware and key services, along with control over their personal electronic health and identity records. 2. Charter MinTIC Academy, Colombia’s first fully online education platform and online university. This effort will help position Colombia as a world leader in Spanish-language online education. 3. Support creation of a nationwide e-health strategy in cooperation with other national ministries; appoint a MinTIC ambassador for e-health to help promote and support this effort. 4. Deploy dedicated wireless access points in every community in Colombia. This effort should be accompanied with support for smartphone purchases and with MinTIC’s sponsorship of “app stores” that host useful cell phone apps, tools, and services. Supporting Recommendations 1. Embrace outreach programs, such as civic hacking and a national TEDx network, which bring new ideas about ICT and technology trends to all parts of Colombia. 2. Continue to support a goal of providing one tablet (or another type of ICT device) to every Colombian child by 2018. 3. Develop a more robust local e-education industry via multiple initiatives, such as a national prize for e-education innovations and a business acceleration program focused on e-education-related entrepreneurship. 4. Assess the potential for expanded mobile banking services in Colombia. This effort may require the use of multiple delivery platforms including a mix of cell phones, ATM kiosks, crowd funding, and more traditional banks and lending institutions. * *
    • MIT TECHNOLOGY REVIEW 17 Poverty Alleviation/Social Development GOVERNMENT POLICY REPORT ColombiaasaGlobalICT Leader:Embracingthe DigitalWorld The New Core Offering: Digital Rights for All Colombians All of these efforts to improve access, uti- lization, and digitization would be rapidly accelerated and transformed via the cre- ation of a set of new “digital rights” for all Colombians. These rights would go beyond a simple statement of legal rights; they would entail a complete package of resources, services, and benefits available to every Colombian citizen. This package would help meet several goals: • Promote digital culture and culture change • Create real demand for ICT products and services • Provide a strong legal foundation for ICT in the economy and in political discourse • Build nationwide buzz around early and deep adoption and use of ICT by citizens, consumers, households, enterprises, and public institutions. This digital rights package dramati- cally extends the concept of a legal “right to Internet access” that has been promulgated in Costa Rica, Estonia, Finland, France, Greece, and Spain. Finland has developed the most expansive program. In addition to declaring a right to Internet access, Finnish law requires that telecommunications pro- viders offer quality services (now defined as Internet speeds of 1Mbps) to every citizen.1 1 Colombia should build on and expand on the Finnish approach to digital rights by providing a more comprehensive package of basic online services and benefits. Under this new system, all Colombians would be guaranteed: • Provision of basic hardware (such as a basic cell phone or tablet) • Access to basic online tools (such as an e-mail account and limited cloud-based data storage) • Access to selected e-government services at no/reduced cost 1 Finnish regulations project that these required speeds will jump from today’s level of 1 Mbps to 100Mbps by 2015. • Personal ownership of individual health- care data by all citizens. Effective provision of these digital rights likely requires formal enactment into law and may potentially be considered as a formal part of Colombia’s constitu- tion. This digital rights package can have far-reaching consequences. In addition to creating excitement about ICT within Colombia, the decision will also reverberate worldwide and help further brand Colom- bia as a regional and global leader in new approaches to ICT. Finally, by stimulating demand for new services, such as cloud- based data storage, this step will also serve to stimulate new ICT investments within Colombia and will also attract new foreign investment. Promoting Digital Culture: Additional Steps Thanks to MinTIC initiatives like Mujeres TIC and Redvolucion, Colombians have been aggressively embracing the use of ICT, the Internet and various mobile technolo- gies. Progress has been impressive since the initiation of the Vive Digital strategy. However, Colombian use of the Internet, social media, and other mobile services still lags the averages for Latin America and falls behind that of regional leaders such as Mexico, Chile, and Brazil.2 In addi- tion, Colombian students rank near the bottom in the most recent Program for International Student Assessment (PISA) assessment of digital literacy skills.3 This lagging performance largely reflects historical gaps that are narrowing due to Colombia’s continued efforts to close its ICT access gap relative to other nations. Recent progress has been quite impres- sive—thanks in part to critical MinTIC investments—and today Colombia has the second highest Internet penetration rate in Latin America. Colombia has also taken several creative steps to promote digitiza- tion in popular culture and to make ICT a more compelling career option as well, even using telenovela characters to make these points. 2 Digital Future in Focus: Colombia, ComScore Report. August 2013. 3 “How are the Digital Skills of Colombian Children?” Colombia Digital, June 1, 2012. Available at: en.colombiadigital.net/columnists/ict-numbers/ item/1847-how-are-the-digital-skills-of-colombian- children As part of its move from access to digi- tization, MinTIC’s digital culture offerings could similarly evolve from basic education about the benefits of ICT to demonstrating how ICT can be used to address pressing civic and social challenges. The growing global movement around “civic hacking” offers one opportunity where MinTIC can help support this work. Civic hacking is a movement where people come together to use public data, code, and technology to help address pressing social problems; it is booming around the world. In the United States, an annual National Day of Civic Hacking is recognized and hundreds of cities sponsor regular competitions to help spur civic hacking. Colombians are also getting into the game, with events such CoCrea Colombia (held in Barranquilla, Cali, and Manizales in May 2013) designed to address the problem of arroyos in urban areas. MinTIC should continue to sponsor a series of similar hackathons or compe- titions where participants seek to solve pressing social challenges using ICT. A host of other public relations and out- reach efforts should also be considered. Around the world, many countries are embracing the Hour of Code initiative that coincides with Computer Science Educa- tion Week (held in 2013 from December 9 to15). During the Hour of Code campaign, more than 3.5 million students in 161 coun- tries (including Colombia) signed up to take a basic one-hour introduction to com- puter science and coding. This effort offers another means to demystify coding and explain the importance of ICT. The effort is backed by major global ICT firms, and has been publicized by celebrities includ- ing Shakira, Bill Gates, Mark Zuckerberg, and President Barack Obama. MinTIC might also consider official sponsorship of a series of TEDx events (locally organized presentations of ideas worth spreading) around Colombia to focus on ICT-related issues and challenges. TEDx events have already been successful in Bogotá and Medellin, but those events did not specifically focus on ICT. MinTIC support could drive ICT-focused events and also introduce the TEDx model to other regions of the country. These TEDx talks could also be streamed across the country via massive open online courses (MOOCs) or other MinTIC supported technologies.
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW18 Poverty Alleviation/Social Development These recommended outreach initia- tives help to improve on the good work already underway via MinTIC and other partners. However, they do not make a massive change in Colombia’s ICT access debates. A more far-reaching recom- mendation would require deployment of community wireless access points in every Colombian community. Since these access points already exist in most urban areas, MinTIC’s programs should focus on providing similar access points in more isolated and rural communities. Wireless access points offer a means to truly engage a large swath of Colom- bians, as national cell-phone penetration rates now exceed 100 percent. If the access points are combined with small subsidies for the purchase of smartphones, the ability to access the latest ICT tools and services would be available to all. Core Recommendation The Challenge: More Colombians need access to the full array of ICT tools and services, along with a means to share new apps and innovations. Proposed Solution: Install free wireless access points in all communities and link this network to a series of “app stores” where new tools and apps can be promoted and sold. * In an effort to further stimulate use of and interest in these new mobile device services and tools, MinTIC should spon- sor the creation of its own app store where new tools and apps can be made available. Multiple stores could be considered, each focused on a key issue area (health, mobile banking, and education), a target industry, or a specific region or locality. Creation of new apps should be promoted across all MinTIC programs, from Apps.Co to hackathons to CPE (Computadores para Educar) and numerous other such initia- tives. In addition, MinTIC should consider sponsoring a program similar to the MIT- backed Entrepreneurial Research and Programming on Mobiles (EPROM) ini- tiative. EPROM, which operates in Africa, supports research and business devel- opment activities focused on cell phone platforms. Ongoing projects include efforts to develop new tools for mobile health records, mobile mapping, mobile blood bank management, and numerous other applications. Benefits to Colombia: • Builds digital culture and national dialogue across all Colombia and all social groups • Promotes demand for ICT services and applications across Colombian consumers, households, enterprises and public organizations. • Enhances safety, security and peace for all Colombians • Lays the foundation for building scalable national ICT platforms in education, health, e-Government and business • Strengthens ICT utilization and adoption in all regions and cities and in all industry sectors • Lays foundation for building a domestic cloud computing, big data and data center network • Attracts foreign investment aimed at ICT infrastructure and services, in particular a nationwide data center network • Demonstrates global leadership around use of ICT for economic development, poverty alleviation and reduction of inequality, building upon the example of Finland Highspeed Broadband Minimum 1 - 100 MBPS ICT Training and Education (online and classroom) Basic Cellphone, SMS, GPS, Camera Basic Cloud-based Data Storage Minimum 100MB-1GB cloud storage for each citizen Guaranteed under Law for Every Citizen of Colombia Patient Ownership of Personal Health Records and Data E-Government Services (free/discounted) Basic Tablet Basic Email Digital Rights for All Colombian Citizens A Comprehensive Package of ICT Services, Privileges, and Benefits for All SOURCE:CODE.ORG,DECEMBER2013.COPYRIGHT–BURTONHOYTLEE2014.ALLRIGHTSRESERVED(EDITSANDMODIFICATIONSPERMITTED).
    • MIT TECHNOLOGY REVIEW 19 Poverty Alleviation/Social Development GOVERNMENT POLICY REPORT ICTforEducation n The development of new mobile learn- ing tools is one of the most exciting new directions for ICT policy. Education at all levels—primary, secondary, and tertiary--- is being transformed via ICT. ICT is now a regular part of formal education at all levels in Colombia, and the emergence of new platforms for online learning offers the potential to bring training, education, and other benefits to a widening swath of individuals, households, businesses, and communities. At present, Colombia is a Latin Amer- ican leader in terms of deploying ICTs for education. A number of Vive Digital programs focus on this important work, especially at the primary and secondary school levels. For example, the CPE initia- tive brings ICTs to children in rural and underdeveloped areas and also provides support to teachers in the effective use of ICT tools. Since its inception in 2001, CPE has delivered nearly 700 thousand comput- ers to more than 40,000 schools. Along the way, CPE has supported technical train- ing for 14,000 teachers. Today, the ratio of students to computer terminals across Colombia has dropped to 15:1. CPE is continuing its work and intends to further empower both students and teachers in the effective use of ICTs. Future plans call for reaching a 12:1 student to computer ratio in schools and in reaching 100 percent coverage in teacher technical training. (At present, MinTIC is on track to achieve these goals by August 2014. With a more recent initiative of tablets for students associated with its recently granted high- speed 4G licenses, Colombia might even reach a ratio of 4:1!). As older computers become obsolete, CPE must also continue to upgrade outdated systems, computers, and tablets and ensure the effective dis- posal and recycling of discarded materials. In addition to continued ICT access improvements via CPE, MinTIC should also examine how ICT can improve the actual delivery of learning opportunities. These initiatives could address three broad sets of issues: 1. Improving access to education and ICT learning opportunities 2. Improving quality of education 3. Introducing new ICT-related tools and technologies to education. Improving Education Access Vive Digital 1 rightly focused its primary attention on improving access to ICT as an education tool. The many achieve- ments of the CPE program testify to the effectiveness of this approach. To increase access to ICT in primary and secondary education, MinTIC should assess whether to continue with current plans that call for continued and gradual introduction of computers for students or to embrace a more radical goal of providing one laptop (or tablet) per child. These 1:1 models, such as Uruguay’s CEIBAL or similar projects in Peru and Brazil, are generating increas- ing interest as the cost of computers and mobile devices drops. As noted elsewhere in this report, these 1:1 models generate some implementation challenges (such as high cost) but they do seem to generate important improvements in both learning outcomes and ICT proficiency. A goal of 1:1 is an achievable and attractive target for the Vive Digital 2 initiative. A new effort to help improve access to higher education may also make sense. In Chile, the Ministry of Education has used Educarchile, a national Internet educa- tion portal, as a tool to help lower-income students better prepare for the national university admissions test (PSU). This test, first introduced in 2003, has proven quite challenging for students from lower-income neighborhoods and lower- performing schools. Educarchile provides PSU training, practice tests and other tools for both teachers and students. This site is one of the most visited web portals in Chile and is serving millions of students each year. A mobile tool, PSU Movil, has been used since 2009 and similar resources are now found on social media sites like Twit- ter and Facebook. In the United States, extensive online education is the norm at community col- leges that often serve a more diverse, less affluent, and less college-ready stu- dent base. Many of these students lack the finances to afford college courses, and many need time-consuming and costly remedial education in areas like reading and math. Distance and online learning programs allow students to take courses at their own pace and at a reduced cost. These transition curricula and learning tools are increasingly popular.4 For example, in Florida, 40 percent of college students took at least one online course in 2011.5 Texas has enjoyed great success with its Developmental Summer Bridge program, which provides online remedial courses in the summer between high school comple- tion and college enrollment. Private online education provid- ers are also thriving. The University of Phoenix is likely the best known exam- ple of these schools. While the school is facing a number of growth challenges, its reach is extensive, engaging more than 30 thousand faculty members and providing online courses to more than 300 thousand students. The embrace of online education offers an important means to achieve MinTIC’s stated goals of “massifying” the Inter- net, generating a massive increase in the public’s regular and consistent use of the Internet and other ICT tools. Online edu- cation offers platforms that will allow large and rapid increases in the number of Colombians using ICT. Improving Education Quality via ICT In the area of education quality, two areas of focus have received substantial attention in recent years: the use of ICT in support- ing teacher training, and the need for more rigorous and effective evaluations and assessment. Under leadership of MinTIC and the Ministry of Education, Colom- bia has been a global leader in supporting ICT-focused teacher training. The CPE program has already trained 14 thousand teachers with a goal of eventually provid- ing such training to 28 thousand educators nationwide. Teachers’ discomfort with new technol- ogy may be a deterrent to both effective deployment in the classroom and overall support for ICT skill development among students. As it expands student access, 4 Community College Research Center, Reshaping the College Transition, A State Policy Report, November 2013. 5 stateimpact.npr.org/florida/2012/12/24/ state-leaders-ready-to-expand-online-higher- education-in-2013/ S D
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW20 Poverty Alleviation/Social Development IMAGECOURTESYMITOPENCOURSEWAREIMAGECOURTESYMITOPENCOURSEWAREIMAGECOURTESYMITOPENCOURSEWARE MinTIC may also need to expand teacher training so that the full benefits of tech- nology in the classroom may be achieved. CPE’s successful training and outreach efforts should be continued, and could be supplemented with a new MinTIC focus on developing new curricula and new digital teaching and learning materials. MinTIC should also consider a number of approaches that can help build better connections with ICT businesses and aspir- ing entrepreneurs across Colombia. For example, a national prize competition for education-related apps and tools might be developed. This effort could be modeled on UNESCO’s King Hamad Bin Isa Al Khal- ifa Prize for the Use of ICTs in Education, which has rewarded ICT education innova- tions for the past few years. Competitions can help generate business interest in serv- ing the growing e-education marketplace. In addition, MinTIC might consider pro- viding additional support for e-education start-up acceleration programs or the development of a focused education mod- ule within the Apps.co initiative. Numerous start-up acceleration programs worldwide are embracing a focus on online learning and ICT-driven education innovations. These incubator/accelerator programs nurture entrepreneurs who are developing new solutions for the education technology market. Many programs are freestanding; examples include Silicon Valley’s Imag- ine K-12 incubator and London’s EdTech incubator. Other programs are affiliated with industry associations (for example, the Software and Information Indus- try Association), major universities (like Stanford’s Schools of Education and Engi- neering), or private firms in the education market (such as Macmillan’s New Ventures Program). At the University of Pennsyl- vania, the new Education Design Studio Inc. (EDSi), affiliated with the Graduate Supporting Recommendation The Challenge: Colombia does not have a strong homegrown e-education industry. Proposed Solution: Use challenge prize programs and startup acceleration programs, such as Apps.co, to help seed the startup of new e-education companies. * S D U ET T S D CLASSROOM EDUCATION Content Interaction Assessment Content Interaction Assessment Credentialing Credentialing? MOOCs Scaling Up Education > MITx and other MOOCS Aspects of the educational experience reaggregated in the MOOC format MITx and edX > Sharing, Teaching, Platform 2002 Sharing • Publication of material from more than 2,100 MIT courses • Uses open licenses to permit reuse • 170 million users in 10 years • No interactivity, no certificate 2012 Platform • 501c3 owned by MIT and Harvard • Open source platform for MOOCs • Building x Consortium (currently 29 universities) 2011 Teaching • MIT Massive Open Online Courses for the world • Interactivity • Certificates ALSO • Innovations in MIT’s on-campus teaching Distinguishing characteristics of MIT OpenCourseWare, MITx and edX Disaggregated aspects of the educational experience at scale online Learning Web 1.0 Web 2.0 AI/Adaptive Alternative Credentialing Content Interaction Assessment Credentialing Scaling Up Education > Open Credentialing CLASSROOM EDUCATION
    • MIT TECHNOLOGY REVIEW 21 Poverty Alleviation/Social Development GOVERNMENT POLICY REPORT School of Education, serves as a combi- nation of incubator, design studio, seed fund, and social impact company in its own right. At present, EDSi operates in “virtual” space, but will take over new physical space next year. EDSi operates with a mixture of funding from local government agencies, private investors, foundations, and large firms such as McGraw Hill Education. In addition to supporting new inno- vations, MinTIC should also promote improved quality in existing ICT educa- tion initiatives. This effort requires an expanded commitment to quality assur- ance and performance measurement of program outcomes and impacts, areas that can be greatly improved via ICTs. As part of Vive Digital 2, MinTIC should work with the Ministry of Education and with other national and international accreditation agencies, such as the Latin American and Caribbean Institute for Quality in Distance Education to ensure that Colombian train- ing materials and assessment tools are of the highest quality and contribute to better education outcomes. Introducing New ICT Promotion Models and Platforms New ICT tools and services emerge nearly every day in the e-learning market, but MOOCs are receiving the bulk of public COPYRIGHT–BURTONHOYTLEE2014.ALLRIGHTSRESERVED(EDITSANDMODIFICATIONSPERMITTED). MinTIC Academy – A NEW ICT Platform and Model for Delivering Online Education and Training Content Across Colombia License International Content • MIT, Harvard, Stanford, Oxford, etc. Develop New Content Domestically • MOOCS • Courses optimized for Colombian SMEs, MSMEs, schools, households and universities Content Focus • Basic ICT skills for Colombian citizens • ICT management and leadership • Software engineering, design, coding • ICT entrepreneurship • ICT innovation processes • Strategic use of ICT for Competitive advantage and exports Use of Open Data + Open Source Content Development Improves Competitiveness • Anchor for new EduTech ICT sector in Colombia • Attracts foreign investment and partners • Supports talent development at all levels, in all sectors and communities. • Online education and social development for cities, regions, and rural areas Cross-Cutting Benefits Large Domestic Market • Primary and secondary schools • Universities • MSMEs, SMEs, large enterprises • SENA • Ministries • Regions and cities • Hospitals and clinics • Industries – agriculture, tourism, technology, etc. Large Global Export Market • LatAM • USA • Spain/Europe Users Domestic Partnerships • Universities • SENA • Industry International Partnerships • MIT • Harvard • Stanford • Cambridge Partners MinTIC Academy A scalable ICT platform and organization dedicated to the development and delivery of MOOC-like Spanish language education and training content “CODED IN COLOMBIA” Made in Colombia by Colombians for Colombian needs and users MinTIC Academy Institutional and Operational Options Option Description Public Institution • Organized and operated as a new unit within MinTIC, with MinTIC staff and internal budget • Organized as a new stand-alone public sector enterprise in partnership with MinTIC, Universities, Ministry of Education, SENA, etc. Private Sector Institution(s) • One or more new startups supported with seed funding from MinTIC via procurement or grant, and private investors • One or more established companies in Colombia contracted by MinTIC to develop all grant components of MinTIC Academy • Attract one or more US/European MOOC startups Udacity, Coursera, iVersity, etc. to establish an operation in Colombia Public/Private Hybrid Model or Partnership • A combination of the above options Option Ranking Option I Option II Option III
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW22 Poverty Alleviation/Social Development attention today. MOOCs are becoming commonplace in the US and Europe, via companies like edX and Coursera, but they are a newer phenomenon in Latin America. In fact, Sao Paolo University announced what it deemed the first MOOC based in Latin America in June 2013.6 Spain’s Miriada X remains one of the best known Spanish-language MOOC platforms. By their very nature, MOOCs are avail- able to anyone, and it is not unusual for popular courses to enroll thousands of students. As such, Colombian students can and should consider enrolling in MOOCs offered in the US or elsewhere. However, there is a pressing need for more Spanish-language MOOCs and for courses that reflect local, national or regional pri- orities. EdX, Coursera, and other US-based market leaders are unlikely to develop extensive local content for the Colombian market. Thus, MinTIC may want to con- sider sponsoring homegrown development of MOOC courses for use by Colombians, and for eventual export to other Span- ish-speaking populations. Coursework in ICT-related fields, like programming or web page design, directly addresses MinTIC’s mission, but other focused coursework, on Colombian history or cul- ture, may also make sense. Some of this coursework could be adapted from existing coursework managed by Udacity; several Udacity programming courses have been translated into Spanish via a partnership with Google. Because some traditional education providers may view MOOCs as competition, MinTIC may also need to sponsor the development of its own focused curricula as well. Finally, MinTIC can use these resources to help address Vive Digi- tal 2’s important goals of expanding SME use of ICTs. Special courses and workshops focused on SME needs and issues could be delivered via these technologies. A more expansive approach would involve MinTIC support for the creation of a new online platform or online uni- versity—MinTIC Academy—the first of its kind in Latin America and one of the first worldwide as well. This effort would help to position Colombia as a global leader in online education, and also serve as a vehicle for a host of MinTIC-related offerings and 6 https://www.edsurge. com/n/2013-06-17-latin-america-s-first-mooc training in key ICT skills and competen- cies and in other areas, such as e-health and mobile finance. This platform should not be limited to university-level training; it should be customized to serve a wide range of audiences. There is no real limit to the range of potential offerings. Within the areas addressed in the Vive Digital framework, issues like financial literacy, entrepreneurship, SME technical assis- tance, youth engagement, teacher training, and many more areas could benefit from new online learning platforms. To be truly effective, this platform should focus on Colombia’s domestic needs and interests and provide funding to develop content addressing key Colombian markets. Because of the challenges related to the development and marketing of new content via MOOCs, MinTIC should undertake additional evaluations to assess Core Recommendation The Challenge: Colombia lacks a scalable online learning platform that can reach large parts of its population and targeted learning communities, such as teachers, SME managers, or mothers. Proposed Solution: MinTIC Academy, Colombia’s first fully online education and training platform. * the best potential management and struc- ture for this new online learning platform Three options exist: 1. To “own” and manage the platform at MinTIC, 2. To partner with Colombian education providers to develop, manage, and market content, and 3. To develop formal partnerships with existing market leaders, such as MIT OpenCourseware, MITx, or the edX consortium. This last option would serve as the simplest and lowest-cost approach for the initial first step. The global OpenCourse- ware Consortium already includes 250 international universities with more than 13 thousand online courses in 20 different languages. As the platform is developed, additional steps to create more local content and more content for non-univer- sity-level audiences must be a top priority. MinTIC and its potential partners should commit to announcing the creation of the new platform within their first six months and Vive Digital 2 and to opening the first MOOC courses within the first year of operations. ICTforHealth n Effective use of ICT and related tech- nologies has proved to improve health care outcomes greatly. E-health is a rap- COPYRIGHT–BURTONHOYTLEE2012-2013 ET ET T Patient medical records waiting digitization, Archives Room, Hospital Local del Norte, Bucuramanga, Santander region, Colombia, March 2012.
    • MIT TECHNOLOGY REVIEW 23 Poverty Alleviation/Social Development GOVERNMENT POLICY REPORT idly growing field that is helping to improve health-care quality, expand the provision of care to underserved populations, and also help reduce health-care costs. New ICT tools such as digital medical records that facilitate e-prescriptions, e-referrals, and other new services have the potential to transform the delivery of health ser- vices. As a recent Inter-American Develop- ment Bank analysis noted, e-health services deliver four types of benefits. In addition to improving the care delivered at clinics and hospitals, they help to: 1. Create better informed patients. 2. Deliver information directly to the point of care. 3. Extend care to previously underserved communities. 4. Lower the cost of service delivery.7 MinTIC and other state ministries have long embraced the concepts of e-health. In addition, a number of universities and research centers, led by the Colombia Telemedicine Center of Cali, are devel- oping new tools, resources, and training programs. Creating effective data privacy rules is an essential first step for effective e-health policies. Fortunately, recent revisions to Colombia’s personal data protection laws have aligned Colombia’s rules and practices with similar rules used by other leading Latin American nations and across the globe. The World Health Organization’s most recent eHealth Country Profile series also notes that many of the key legal and regulatory foundations are in place in Colombia.8 7 Inter-American Development Bank, Bridging Gaps, Building Opportunities: Broadband as a Catalyst of Economic Growth and Social Progress in Latin America and the Caribbean, March 2012, p. 27. 8 World Health Organization, Global Observatory for eHealth. Available at: www.who.int/goe/publications/ ehealth_series_vol1/en/index.html Core Recommendation The Challenge: To create more public support for the acceleration of e-health programs in Colombia. Proposed Solution: Support development of a national e-health plan, with MinTIC support provided by a newly designated e-health coordinator. * A National E-Health Strategy As a next step, MinTIC should consider sponsoring or advocating for develop- ment of a national e-health action plan in cooperation with key health-related agencies. As part of this effort, MinTIC should consider designating a national level e-health coordinator to help manage the planning process. Because of the tre- mendous complexities related to various aspects of e-health policies, national level planning to coordinate multiple agencies and disciplines is needed. In addition to addressing key legal and regulatory issues, this national plan can help set a frame- work for new investment in health ICT infrastructure. These national level strategies are rec- ommended as preferred practice by many international and regional organizations, including the World Health Organization, the Pan-American Health Organization, the International Telecommunications Union (ITU), the OECD, the European Union (EU), and many others. The ITU and key partners have developed special- ized tool kits to assist in the development of such plans.9 In Europe, the EU has embarked on development of a new 2012- 2020 e-health action plan to coordinate data rules and to develop telemedicine technical standards across member states. A similar effort is needed in Colombia, perhaps in cooperation with other Latin American nations. Electronic Health Records (EHRs) This strategy should place particular attention on how to manage digital health records. Management and control of per- sonal health records is proving to be a major obstacle in the development and expansion of mobile health services. In the US and other developed economies, EHRs have been used for some time, but issues over EHR management have greatly complicated moves toward full digitization of health services.10 EHR systems are not 9 International Telecommunications Union, National E-Health Strategy Toolkit, (Geneva: ITU, 2012). Available at: www.itu.int/ pub/D-STR-E_HEALTH.05-2012 10 Kyle Murphy, “Is Mobile the Key to EHR Interoperability, Fragmentation?” EHR Intelligence, October 23, 2013. Available at: ehrintelligence. com/2013/10/23/is-mobile-the-key-to-ehr- interoperability-fragmentation/ inter-operable and the large number of new technologies and services further com- plicates the mix. These challenges could be lessened if patients were provided with remote real-time access to and control of their own personal health records.11 Suc- cessful e-health initiatives also meet the operational needs of health-care provid- ers, including doctors, public health offices, and hospitals. E-health services will not be adopted if they are too complicated, unreliable or incompatible with existing processes. ICTforFinancialLiteracy andEmpowerment n With cell phone penetration rates that exceed 100 percent, Colombia is poised to be a regional and global leader in mobile banking and related fields. Numerous stud- ies project massive growth in mobile bank- ing utilization across Latin America over the next several years.12 Other research, from the World Bank Group’s International Finance Corporation (IFC) and from the MasterCard Mobile Payments Readiness Index, notes that Colombians are ready and willing to use mobile banking services. The needed regulatory infrastructure is in place, but many are deterred by the high cost of these services and other non-ICT- related factors, such as overall low savings rates. These trends offer opportunities to reduce costs and to improve services, but, more important, they offer a means to reach new and underserved custom- ers, particularly those with lower incomes or residents of relatively isolated rural regions. Using ICT technology for finan- cial inclusion is proving to be a successful strategy around the globe. Kenya is prob- ably the best known example of this process and the benefits of new mobile technolo- gies for financial inclusion. Prior to the advent of mobile money (2006), only 20 percent of Kenyans had access to financial 11 “Frost and Sullivan Examines the Future of On-Demand Mobile Personal Health Records,” Press Release, October 22, 2013. Available at: www.frost.com/prod/servlet/press-release. pag?docid=286610401 12 See, for example, Deloitte, The Future of Mobile Banking in Latin America, 2011 Report. Available at: www.deloitte.com/assets/Dcom-UnitedStates/ Local%20Assets/Documents/FSI/US_FSI_ Mobilebanking_Latin_America_121511.pdf D S D D D
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW24 Poverty Alleviation/Social Development services. By 2010, 75 percent of Kenyans had used such services.13 While the Kenyan success story is regularly touted, few other nations have been able to emulate this impressive per- formance. Kenya’s success developed not simply because of the power of ICT, but because mobile-money efforts were well integrated into a national network of finan- cial agents who could benefit from a large and ready pool of customers. Effective strategies in Colombia will depend not just on new technologies, but on the abil- ity to link mobile-money services to a wide and available network of service points in stores, kiosks, mobile devices, and the like. The adoption of mobile economy tools will depend upon success in helping Colom- bians transition from their traditional reliance on the cash economy. Despite extensive cell phone pen- etration rates, Colombia has been less successful in encouraging full and effective use of new mobile banking services. In fact, Colombia has one of the largest gaps in Latin America between mobile penetration rates and financial inclusion.14 While more affluent customers are embracing mobile banking, penetration rates among the poor remain low. A recent study of mobile phone use by informal workers in Medel- lin found that most respondents used cell phones for personal calls and opted to use game kiosks for financial services.15 These kiosks were viewed as more convenient and better structured to deal with the small payments and small transactions required by most local customers. Most did not see a need for banking services, which were viewed as too costly and too complex. The analysis recommends that kiosks and other points of sale should be tapped as part of a nationwide network to provide financial services. This digital network, with a focus on the poor and unbanked, would serve as 13 Fatima Yousif et al., Best Practices in Mobile Microfinance, Grameen Foundation White Paper, 2013, p. 2. Available at: www.imtfi.uci.edu/files/imtfi/ grameen_microfinance_white_paper.pdf 14 Ericsson Consumer Lab, M-Commerce in Latin America, June 2013. Available at: www.ericsson.com/ res/docs/2013/consumerlab/m-commerce-in-latam. pdf. 15 Ana Maria Echeverry Villa and Coppelia Herran Cuertas, Betting on Chance in Colombia, Irvine: CA: Institute for Money, Technology and Financial Inclusion, 2013. Available at: www.imtfi.uci.edu/files/ imtfi/docs/2013/betting_on_chance_in_colombia_ english_final.pdf a supplement to the mobile banking ser- vices under development by banks and other private lenders. The current reliance on kiosks suggests that any shifts toward mobile banking should include this onsite distribution channel as well. Linking mobile banking and micro- finance programs has also proved to be an effective development strategy. An extensive literature on best practices in ICT-driven microfinance has been devel- oped by global microfinance institutions (MFIs) like Grameen Bank and others.16 This research suggests that there is no one single effective business model and strategy for mobile microfinance services. As such, industry experts recommend the design of pilot demonstration projects to test dif- ferent models and approaches. MinTIC should consider working with regional governments to test a handful of business models for effective mobile microfinance services. A final option would be to consider sup- port for national, regional, or local crowd funding platforms modeled on existing tools such as Kiva, Kickstarter, or Indi- egogo. These sites could be focused on a specific region or specific focus areas, such as business startups, nonprofits, or arts and culture related projects. This effort offers another means to help publicize the power of ICT platforms to assist Colombi- ans in accessing capital for needed projects or startups. In Colombia, cultural and business factors seem to outweigh technology shortcomings as a primary impediment to greater use of mobile banking services. Therefore these efforts should be accom- panied by an extensive outreach campaign that touts the benefits of mobile banking. Sample Metrics This fundamental area of the Vive Digital strategy covers a wide array of issues, and thus complicates our capacity to develop a single set of shared metrics. Each subfield, such as e-health or e-education, must rely on specialized metrics and performance assessment systems. Fortunately, most of these disciplines can also point to well- established best practices for performance measurement, such as the PISA assess- 16 Yousif et al. ments of digital learning or the ITU’s toolkit for tracking e-health performance. More generally, MinTIC should con- tinue to utilize the core access metrics that have driven assessment of the original Vive Digital strategy. These include the follow- ing measurements: 1. Connections: The scale and scope of municipal, business, and home connections to fiber optic networks and high-speed Internet connections 2. Penetration: Increases in access to key ICT tools and services, such as ICT access in schools; training teachers to be comfortable with ICT tools; and increases in use of new services, such as mobile bank- ing or e-health services 3. Economic Impacts: Increases in stu- dents entering ICT and related fields, and the creation of new jobs, new wealth, and new business ventures based on ICT and assessed at the local, regional, and national levels. These access measures should be sup- plemented by other metrics that capture Colombia’s continued success in promoting digitization.17 These include the following: 1. Ubiquity: access to digital services and applications 2. Affordability: availability through low pricing 3. Reliability: quality and consistency of connection 4. Speed: real-time data throughput rates 5. Usability: ease of getting on line and ease of use 6. Skill: incorporation of digital services into lives and businesses. 17 El Darwiche et al, p. 3.
    • Competitiveness IN THIS SECTION Overview ICT and Competitiveness by Strategic Sector Adoption of ICT among MSMEs to Promote Competitiveness ICT and Regional Competitiveness Smart Cities ICT Adoption in Government Metrics and Performance Impacts MinTIC’s mission to use ICT as a path to prosperity and economic develop- ment requires expanding and deepening business and government use of ICT technologies. This component of the Vive Digital 2 strategy seeks to leverage MinTIC’s ICT investments to make the Colombian economy more competitive and innovative by improving industry productivity and government efficiency. It addresses approaches to ICT development for strategic industry sectors, support for micro-, small, and medium enterprises (MSMEs), regional competitiveness, and e-government. STUARTBRADFORD
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW26 Competitiveness ET D T Core Recommendations 1. Adopt a National E-Agriculture Strategy: Colombia’s agriculture sectors are global industry leaders and major employers across the country. Efforts to improve the productivity of Colombian agriculture via ICT investments can have large ripple effects across the economy. MinTIC should develop new initiatives, in partnership with the ICT and agribusiness sectors, to provide ICT training, facilitate creation of sector-specific apps, develop information content, and identify market potential for advanced ICT-agribusiness products or services that can be developed within Colombia. 2. Build ICT Capacity in SMEs: Encourage SMEs in all sectors to embrace the active use of ICT tools and technologies, via actions such as: • Offering ICT training, education and funding to deepen the ICT capacity of SMEs that already use basic technology tools (“technology followers”) • Creating MinTIC-approved training and content to upgrade digital skills and encourage using them to deepen the ICT capacity of SMEs • Providing vouchers to subsidize purchase of ICT products and services. 3. Embrace E-Government: Formalize MinTIC as the lead organization for e-government initiatives at the national level in order to achieve a “whole-of-government” approach and management of a single portal for citizen services, develop a long-term technology road map, and build political support to address evolving ICT issues in government. This effort should include the establishment of a regional center of ICT innovation for e-government that would serve as a national thought leader on effective strategies. 4. Embrace open-source software. Adopt a positive and proactive policy towards the development, use, and sharing of open-source software and related code that would apply to all government levels, public health, and higher education institutions. Supporting Recommendations 1. Convene an ICT industry plus logistics sector summit to select one top priority among the needs already identified (such as port security or prediction systems for warehouse traffic) and create a project team (funded by MinTIC and industry partners) to provide a solution within one year. 2. Implement the strategies and actions from the Strategic Vision of the Software and Associated Services Sector Regionalized Marketing and Sales Plan. 3. Adapt outreach techniques developed through Redvolucion and IT Mujeres to provide basic computer and Internet training through multiple channels to micro- and small businesses with low levels of technology adoption. 4. Engage SMEs with high levels of technology adoption in regional cluster initiatives, the proposed regional centers of IT innovation, and university entrepreneurship and innovation centers. Promote access to financing and ICT training programs, such as the proposed innovation funds and MinTIC training and certification programs. 5. Expand the Mipyme digital pilot program to work with large enterprises to introduce ICT to MSMEs in their supply chains. 6. Adopt a bottom-up approach with regions, one which employs local stakeholder- and user-driven priorities and needs, in order to identify specific activities for sectoral and regional ICT initiatives. 7. Pursue a platform approach to smart-cities programs, one that provides governance guidelines while allowing bottom-up innovation and creation of an ecosystem around the initiatives. Engage universities and the proposed regional centers of ICTinnovation—as well as government and private industry—to form the ecosystem around the smart cities initiative. 8. Prepare policy guidelines addressing data practices and privacy issues, for use by government entities at all levels. 9. Adopt a positive and proactive policy towards development, use/adoption, maintenance, and sharing of ”open data” for commercial and not-for-profit applications. This policy would apply to the national government, regional, and city governments, public health and higher education institutions. 10. Create and foster open-data communities of practice across Colombia. T * * ET
    • MIT TECHNOLOGY REVIEW 27GOVERNMENT POLICY REPORT ICTandCompetitiveness byStrategicSector n ICT infrastructure can enable productiv- ity and efficiency gains by industry sector, but to be transformational, services (infor- mation, apps and software) that meet the specific needs of each sector must be avail- able. This section summarizes major ICT topics and services that have been identi- fied as most important in driving growth for a set of Colombia’s strategic sectors. This section is organized around the country’s strategic sectors—agribusiness, manufacturing, and services—as identi- fied in the Vive Digital 2 framework and consistent with the investment sectors used by the Ministry of Commerce, Indus- try and Tourism (MinCIT)1 and Proexport Colombia. Within these three sectors we focus attention on the “productive bets” that were identified in the FITI report2 as most promising for ICT development in the regions. Responding to the high pri- ority given to trade and transportation by the national government, we also high- light opportunities related to the logistics segment in Colombia. (The information technology industry itself is addressed in Framework 3.) Agribusiness Agriculture accounts for 6.5 percent of Colombia’s GDP and 18 percent of its employment.3 Agricultural products— especially coffee, flowers, bananas and sugar—are major export products. Palm oil, rubber, cocoa, and sugar cane have been identified as areas of opportunity.4 Other major products include rice, tobacco, corn, beef, shrimp, chocolate and confectionery, 1 www.investincolombia.com.co/sectors 2 APCA Consortium ETI, Strategic Vision of the Software and Associated Services Sector Regionalized Marketing and Sales Plan of the Sector in Colombia. Executive Summary. 2013. 3 www.cia.gov/library/publications/the-world-factbook/geos/co.html 4 ProExport Colombia, Colombian Agribusiness Sector, 2011. www. slideshare.net/investincolombia/colombian-agribusiness-sector-2011 palm and biofuels, fruits and vegetables, and milk.5 Across the sector, ICT has tremendous potential to help both small-scale farmers and major agricultural enterprises become more productive, expand their operations, find new markets and sales channels, and/ or become export ready.6 In Colombia, the Coffee Region and the Pacific Region have identified the agro- industrial sector as a primary target for ICT development. Fedesoft estimates agricul- ture is the fifth-largest sector in demand for software. However, only 22 companies—or 2.3 percent of the total—provide software services for this sector. These companies include Apolo, Surtifacil, Insoft, SIO, Open Systems and Parquesoft.7 ICT can enhance the competitiveness of the agriculture sector in the following ways: • Providing access to market informa- tion, including current market prices, market demand, and customer identifi- cation. Providing access to other critical information, including weather updates, water conditions, crop-specific educa- tional content, and guidance on how to treat pests and diseases • Facilitating transactions, ranging from text messaging or mobile services, to negotiations between buyers and sellers, to non-cash methods of payment, or even microinsurance8 • Enabling tracking/tracing to enhance food safety and security while also enabling farmers to meet export stan- dards, for example, the TRAZ.AR tracing program for cattle in Argentina9 • Improving supply-chain efficiencies to reduce waste • Implementing applications for agribusi- ness, including precision agriculture to “map weather, water, soil characteristics, and other variables and to precisely apply 5 www.cia.gov/library/publications/the-world-factbook/geos/co.html, MinTIC comments on MinTIC Policy Report: Draft Outline October 15, 2013. 6 United Nations Conference on Trade and Development (UNCTAD), Information Economy Report 2011. ICT as an Enabler for Private Sector Development, unctad.org/en/docs/ier2011_ en.pdf ; The World Bank Group, ICT for Greater Development Impact. Sector Strategy, 2012. siteresources.worldbank.org/ EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/ Resources/WBG_ICT_Strategy-2012.pdf; Inter-American Development Bank, The Imperative of Innovation. Creating Prosperity in Latin America and the Caribbean idbdocs.iadb.org/wsdocs/getdocument. aspx?docnum=36526246 2011; International Trends in ITC, MIT Technology Review, 2014. 7 APCA Consortium ETI Strategic Vision. Executive Summary. 2013. 8 UNCTAD 2011. 9 International Trends in ITC . p.48 f. fertilizers or pesticides or time harvests” and apps to track and improve farm management processes10 • Funding biotechnology and bioinformat- ics research. For example, ICT programs and services may be integrated with ongoing research programs, such as Cenicafe (coffee), Cenicana (sugar cane), and CEINACUA (shrimp). MinTIC and partners have already identified this as a promising strategy, proposing a center of bioinformatics and computational biol- ogy in the Coffee region—supported by Microsoft, Colciencias, MinTIC, National University and SUMA—to provide “ser- vices in processing and storage of data, development of software and scientific and technical support to companies.”11 There appear to be several national- level and regional partners through which MinTIC can pursue agriculture-related ini- tiatives. In addition to those listed above, the Colombian Corporation for Agricul- ture and Farming Research (CORPOICA), seeks to generate and transfer scientific knowledge and technological solutions to the agricultural sector12 and the Desarrollo Rural con Equidad (DRE—Rural Devel- opment and Equality Program), created by the Ministry of Agriculture and Rural Development and managed by Finagro under the auspices of the National Univer- sity of Colombia, offers credit and technical assistance incentives. DRE also subsidizes up to 80 percent of the technical-assistance contracting costs of small producers. Both appear to be promising partners.13 10 Ibid. 11 APCA Consortium ETI, 2013, p. 44. 12 Inter-American Development Bank, 2011. 13 ProExport Colombia, Colombian Agribusiness Sector, 2011. Core Recommendation The Challenge: The agribusiness sector needsaccesstoICTtraining,tools,andtalent toimproveproductivity,expandgrowth opportunities,andbecomemorecompetitive. Proposed Solution: Partner MinTIC services and the ICT industry with existing public and private organizations serving the agribusiness sector to provide ICT training, facilitate creation of sector-specific apps, develop information content, and identify market potential for advanced ICT- agribusiness products or services that can be developed within Colombia * Competitiveness ET T D
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW28 Manufacturing Industry accounts for 37.5 percent of Colombia’s GDP and 13 percent of its employment. Major categories include textiles, food processing, oil, clothing and footwear, beverages, chemicals, cement, gold, coal, and emeralds.14 Auto parts, graphic communication, cosmetics, iron and steelworking, metalworking, textiles, and clothing have been identified as areas of opportunity by MinTIC and MinCIT.15 ICT is both an integral part of the global modern manufacturing sector but a weak- ness for many manufacturing SMEs. This provides an opportunity to raise productiv- ity among the latter set of firms that may not be fully comfortable with ICT-focused investments. Challenges to improving productivity in the Latin American man- ufacturing SME sector include lack of knowledge about best practices, delays in adopting new technologies (including ICT), difficulty in integrating into global supply chains, and a lack of market-based advisory services designed for SMEs.16 None of the “productive bets” identi- fied in the FITI report at the regional level are traditional manufacturing industries. However, the Santander Region has identi- fied mining and hydrocarbons as a primary target for ICT development. This sector includes oil and gas, biofuels, and deriva- tives and addresses not just exploration, but also research, business activities, and support services around refining and pro- duction. ICT-related opportunities include furnishing software services to firms in these arenas. It is not clear how big the base 14 www.cia.gov/library/publications/the-world-factbook/geos/co.html 15 MinTIC comments on MinTIC Policy Report: Draft Outline October 15, 2013 and www.investincolombia.com.co/sectors. 16 Scott Andes, Stephen Ezell, and Jesus Leal, An Alternative to Mercantilism: Manufacturing Extension Services in Latin American and Caribbean Countries,The Information Technology & Innovation Foundation, 2013. www2.itif.org/2013-manufacturing-extension-services- latin-america-caribbean.pdf is, but the Forum for Information Technol- ogy Initiatives (FITI) reports that relevant IT firms work primarily in consulting and “informatics programs,” followed by data processing and maintenance and repair of office equipment. The specific applications that will be valuable to industrial firms will vary widely by industry and company size and sophis- tication. Here we summarize overall policy approaches to accelerating and deepen- ing enterprise adoption of ICT, which can enhance the competitiveness of the manu- facturing sector: • For the majority of manufacturing SMEs, policy approaches should be: ·· Offer basic training, tailored to manufacturing enterprises, exist- ing productivity and communication tools, which may range from basic spreadsheets to production-schedul- ing tools. ·· Support development of industry- specific content for marketing/sales outreach (creating websites, using e-mail and social media for customer contact); share market and trends information, and create best-prac- tices content and case studies. ·· Teach how to use various ICT- enabled transaction tools such as payment services or money transfer, and possibly connect firms to more sophisticated credit, savings, and insurance financial services. • For more sophisticated SMEs with greater growth potential: ·· Introduce cloud-based services that can lower ICT costs to businesses. (Inform, train, connect). ·· Offer ICT training or services to enable firms to become export ready—via global market information, standards adoption and training, international certifications, and connecting to the supply chain. ·· Raise awareness of ongoing ICT-related innovation and R&D ini- tiatives in their industry and region, primarily through the cluster initia- tive and centers of excellence. MinTIC may not be the right entity to provide all of these services directly to manufacturing SMEs, though the proposed MinTIC Academy can play a developmen- tal and supporting role. Prior to changing their behavior, small businesses tend to turn first to peers in their community or industry, then to trusted intermediaries, such as trade groups, educational insti- tutions, or local leaders. ICT services to manufacturing SMEs should be provided via trusted intermediaries and existing industry communities. Accordingly, MinTIC should not lead— except as a convener—but should partner with existing industry groups (such as ACOLFA (Colombian Association of Auto Parts Manufacturers) or Clúster Textil y Confección in the textile industry) and business service providers (including the National Apprenticeship Service (SENA) and Productive Transformation Programs (PTP)) to offer relevant ICT programming. To the extent possible, MinTIC should join existing industry support initiatives to learn more about industry issues and how MinTIC can help, rather than pushing ICT solutions on their own. To expand this network and encourage ICT adoption, vouchers or other incentives for ICT or innovation-related services and purchases should be provided. As Frame- work 3 observes, the innovation voucher approach will also create demand for ICT services and help that sector to develop. Large, sophisticated manufacturing firms will need an entirely different type of ICT support service since they have the resources and experience to implement their own internal ICT processes. They are more likely to look to MinTIC for policy support for intellectual property rights protection, R&D/innovation investments (already in place, for example, via Col- ciencias, the Administrative Department of Science, Technology, and Innovation), and are more willing to participate in new programs—such as the CEMEX-MinTIC effort. Finally, access to top-quality IT talent is often a critical issue for large firms, regardless of sector. Talent will be addressed separately in Framework Area 4. Services Services account for 56 percent of Colom- bia’s GDP and 68 percent of employment.17 Energy, business-process outsourcing and offshoring (BPO&O), and nature and health 17 www.cia.gov/library/publications/the-world-factbook/geos/co.html Competitiveness D ET D
    • MIT TECHNOLOGY REVIEW 29GOVERNMENT POLICY REPORT tourism have been identified as areas of opportunity. Electrical energy and ser- vices are also included under PTP18 in this category, as is software and ICT, which is covered separately under Framework 3 in this report. Bankingandfinancialservices has been identified as a focal point in the FITI report for the Cundinamarca region, but is not highlighted elsewhere as a priority sec- tor. In Colombia, as in other countries, the banking and financial sector is a major con- sumer of ICT services. These ICT products and services may be developed and ser- viced internally or they may be outsourced to other firms or universities. Banks also exhibit a high demand for internationally certified talent, often buy foreign soft- ware, and are reportedly dissatisfied with the existing Colombian products in this niche. Growth opportunities are seen in offshoring, custom development, testing, and adapting software to local markets.19 The Antioquia Region has identified the energy services sector as a primary target for ICT development. This sector includes electrical energy generation and transmission. The cluster includes several major companies as well as a large base of microenterprises, a strong chamber of commerce as a unifying agent, research organizations, university involvement, and a small set of software companies that serve the industry.20 The PTP also recognizes this sector, emphasizing actions related to “spe- cialization, the adoption of international standards, certifications, or best practice models” to support industry growth. Business Process Outsourcing and Off- shoring(BPO) is not identified as a primary target for ICT development at the regional level in the FITI report. However, it is a pri- 18 www.ptp.com.co/contenido/contenido.aspx?catID=692&conID=467 19 APCA Consortium ETI, 2013, p. 40-41. 20 APCA Consortium ETI, 2013. ority sector for both the PTP and Proexport Colombia. This sector reportedly created 84 thousand jobs in 2011 and grew 61 per- cent over the last four years for a total of 210,700 positions in 2012. Major segments served are telecommunications, “other,” and banking services, with the majority (60 percent) of these jobs in inbound call centers. Back office operations account for only 6 percent of the total. Talent is a major issue for this segment, and the government has already initiated targeted programs to address BPO workforce needs. They include a US $12 million initiative between the Inter-American Development Bank (IDB) and PTP to strengthen Colombia’s human capital through a “finishing school” model, and the $18m Instituto Colombiano de Credito Educativo y Estudios Tecnicos en el Exterior (ICETEX) and MinTIC Talento Digital effort to train ICT talent.21 Tourism is not identified as a primary target for ICT development in the FITI report. However, it is a priority sector for both the PTP and Proexport Colombia. The tourism industry in Colombia is growing rapidly (10 percent average annual growth from 2000-2012). The PTP breaks the industry down into medical tourism and wellness (building on the country’s well- regarded and relatively inexpensive health care sector and proximity to key population centers in the Americas) and nature tour- ism (building on the country’s biodiversity and its large number of protected areas). The key issues here are developing 21 www.investincolombia.com.co/sectors/services/bpo.html labor specialties, study programs, and promotion. On the front end, broadband access is also critically important for com- munication and outreach , using websites, social media, and e-commerce channels22 to provide services to potential customers around the world. IT-enabled back-office functions for managing operations effi- ciently are also vital to success. Each of these subsectors will require tailored ICT initiatives, but a unifying theme is the need to develop industry and ICT talent. The question of talent will be addressed directly in Framework Area 4, but its key themes include raising overall education levels, helping individuals obtain relevant industry and international certi- fications, and supporting second language and multiple language (especially English) proficiency. Logistics Foreign trade in Colombia is expected to triple over the next five years (especially in oil, gas and coal).23 Transportation and logistics is one of the most promising areas in which ICT investments can significantly increase competitiveness, with a large impact on output and other economic mea- sures. For example, a 10 percent reduction in freight costs could increase international imports by 45 percent and regional imports by 60 percent. Improving two key supply- chain barriers—border administration and transport and communications infrastruc- 22 Inter-American Development Bank, Bridging Gaps, Building Opportunity. Broadband as a Catalyst of Economic Growth and Social Progress in Latin America and the Caribbean. A View from Industry. 2012. issuu.com/idb_publications/docs/technicalnotes_en_71258 23 APCA Consortium ETI, 2013, p. 32. CREDIT:OECD/ECLAC/DEVELOPMENTBANKOFLATINAMERICA(CAF)(2013),LATIN AMERICANECONOMICOUTLOOK2014:LOGISTICSANDCOMPETITIVENESSFOR DEVELOPMENT,OECDPUBLISHING. Chapter 4 ARG   BOL   BRA   CHL   COL   CRI  DOM   ECU   GTM   JAM   MEX   PER   URY  VEN   -­‐40000   -­‐30000   -­‐20000   -­‐10000   0   10000   20000   30000   40000   50000   60000   -­‐1   -­‐0.5   0   0.5   1   1.5   OECD   Other  countries     Lacn  America     LaborproductivitynotexplainedbyGDPpercapita Logistics performance not explained by GDP per capita MEX   Competitiveness T Logistics and Labor Productivity (values)
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW30 ture and related services— “even halfway to the world’s best practices” would reportedly increase global GDP by nearly 5 percent and exports by 14.5 percent.24 Latin America, and Colombia specifi- cally, have a relatively high proportion of “time-sensitive and logistics-intensive exports” (such as agricultural products, energy products (oil, gas and coal) and clothing) but they still lag OECD coun- tries on logistics/infrastructure measures. ICT for logistics is one of four short-term investment categories recommended by the OECD for improving performance. If logistics includes “all the services and processes needed to transport goods and services from the point of production to the end consumer,” areas of ICT-related needs range from administrative and cus- toms procedures to transport organization and management to tracking and tracing services. Robust and reliable telecommu- nications infrastructure is also vital. 25 Colombia is already addressing its logistics challenges. The country is “under- taking massive developmental initiatives to build up its infrastructure,” investing in airports, roads, highways, and seaports.26 The National Development Plan seeks to triple port capacity.27 Colombia has also made important ICT-related progress in 24 OECD, Policies for Boosting Logistics Performance in Latin America, in Latin American Economic Outlook 2014, pp. 125-157. 2013 citing the World Economic Forum. 25 Ibid. 26 Gartner, Analysis of Colombia as an Offshore Services Location, October 2012. 27 APCA Consortium ETI, 2013. document handling and customs proce- dures, and has implemented electronic data interchanges for taxes and duties (MUISCA) and the single window for for- eign trade (VUCE). The OECD reports that, “In all, the time required for document preparation, customs clearance and tech- nical control, as well as port and terminal handling, is competitive as compared to other Latin American countries and close to high-income OECD economies.”28 The Caribbean region has identified logistics and transport as a primary target for ICT development. 67 percent of the country’s port traffic is in the Caribbean region (2011). Of this traffic, 72 percent is attributable to foreign trade, while the remainder comes from loading, trans- fers, and transits. Looked at another way, 56 percent of exports and imports went through Caribbean ports. Furthermore, the Caribbean region accounts for 15 percent of the country’s passenger traffic. Beyond the Caribbean region, Bogotá reportedly has the leading airport in Latin America by total cargo traffic.29 The logistics sector may have a core of potential “anchor companies” or multi- national corporations with which to build relationships. The FITI report notes that 15 of the largest marine transport companies 28 World Bank, Doing Business in Colombia 2013, Executive Summary, p. 4. doingbusiness.org/~/media/GIAWB/Doing%20Business/Documents/ Subnational-Reports/DB13-Colombia-Overview.pdf 29 Proexport Colombia, Automotive Industry in Colombia, April 2012. www.investincolombia.com.co/attachments/Automotive%20Industry%20 in%20Colombia%20-%20April%202012.pdf in the world are located in the Caribbean region, and it seems unlikely they are there merely for sales, in contrast to the ICT mul- tinationals operating in Colombia. The logistics sector is inherently ICT- oriented. Companies generally do not have to be convinced that it is worthwhile to become ICT-savvy. Other advantages from MinTIC’s perspective is that this sector appears to have anchor companies in the country already, global standards have been established, and Colombia has already made strong progress in its national ICT systems. Strong growth is forecast, with accompanying opportuni- ties for many of the other strategic sectors and regional productive bets. Furthermore, ICT investments in this sector may be per- ceived as relatively inexpensive compared to the massive infrastructure investments underway. ICT can enhance the competitiveness of the transportation and logistics sector in the following ways: • Regional needs identified by FITI:30 ·· software and information systems for port security ·· crane simulators ·· tugs and optimum docking ·· prediction systems of warehouse traffic ·· mobility in ports ·· meteorological and climate predictions. • Foci to improve global competitiveness:31 ·· Customs automation ·· Ability to track and trace goods in transit at every stage of the process ·· Risk analysis for trade in goods ·· Electronic submission of customs forms and documents ·· Information management and terminal operations ·· Electronic “single window” for import and export documentation (VUCE) ·· Streamlining technical and administrative procedures. MinTIC should coordinate with other national level organizations that are 30 APCA Consortium ETI, 2013, p. 33. 31 OECD, Policies for Boosting Logistics Performance in Latin America. SOURCE:WORLDECONOMICFORUM Competitiveness Ambitious scenario Countries improve trade facilitation halfway to global best practice Modest scenario Countries improve trade facilitation halfway to regional best practice Tariffs All tariffs removed globally 4.7% 14.5% 2.6% 9.4% 0.7% 10.1% 2.6 1.6 1.5 1.0 0.4 1.1 The GDP effect of reducing supply chain barriers is much higher than for removing tariffs 3 2 1 0 Trade GDP ($USTRILLION) Increase in trade and GDP under three barrier-removal scenarios
    • MIT TECHNOLOGY REVIEW 31GOVERNMENT POLICY REPORT already taking the lead on logistics com- petitiveness. MinTIC should strive to add value to existing efforts within the Min- istry of Transport and MinCIT to make ICTs part of the national logistics policy. In doing so, it will leverage past investments to enhance competitiveness in this sector plus priority industries, while also creating opportunities for ICT firms in Colombia. This is a demand-driven recommen- dation requiring upfront work to build partnerships and identify market need. The goal is to promote broader ICT use among Colombian enterprises engaged in the logistics sector. To do so, we recommend creating formal working relationships with MinCIT, the Ministry of Transport, and logistics and transportation cluster partners throughout Colombia’s regions as a basis for increasing ICT penetration among enterprises. Specific program recommendations are: 1. Convene an ICT industry and logistics sector summit to select one top priority among the needs already identified (such as port security or prediction systems for warehouse traffic) and create a project team, funded by MinTIC and other government and industry partners, to provide a solution within one year. 2. Meet with the major marine transportation companies located in the Caribbean region to introduce them to the regional cluster initiative and invite their participation. Use these meetings to assess also whether there is an opportunity to connect Colombian ICT firms to these companies. Supporting Recommendation The Challenge: The logistics sector is critical to regional and national economic growth but several specified ICT-oriented problems must be addressed in order for it to achieve its potential. Proposed Solution: Continue to extend broadband access and adapt outreach techniques developed through Redvolucion and IT Mujeres to provide basic computer and Internet-for-business training, primarily at community centers. * 3. Implement Actions A1-A23 from the Strategic Vision report, with emphasis on training for IT businesses, preparation of case studies, consultancy for opening sales, distribution and commercialization channels, programs for implementing CMMI, IT-Mark and other quality programs, programs for training managers, and creation of the Regional Council of IT of the Caribbean, IT Business roundtables, a venture capital investment fund, strategic alliances with port companies, and strategic alliances with foreign trade zones. One model for organizing the activ- ities under the Strategic Vision’s Action Plan for the Caribbean Region is the Cen- ter of Innovation for Logistics32 in Georgia, in the United States. The Center serves logistics companies by providing “indus- try knowledge and expertise, connection to state resources in research and innovation, and an extensive cross-sector industry net- work.” One of several such centers within the Georgia Department of Economic Development, it has a staff of three and four “collaboration partners,” which offer relevant technology and financial services to businesses. AdoptionofICTamong MSMEstoPromote Competitiveness n Micro-, small, and medium-size enter- prises (MSMEs) comprise 94 percent of businesses in Colombia and account for one-third of its jobs.33 However, many MSMEs lag in overall use of ICT, advanced ICT use, and Internet connectivity. For example, only 60.6 percent of all MSMEs34 have an Internet connection, though con- nectivity rates range from 57.8 percent among microenterprises to 93 percent for small enterprises and 98 percent for medium-size enterprises. Improving productivity and competi- tiveness among these firms is necessary to achieve MinTIC’s larger goals of reducing poverty and enhancing economic growth. As pointed out in the companion Trends 32 www.georgialogistics.com 33 World Bank, Doing Business in Colombia, 2013. 34 Mipymes formales MSMEs registered with la Camara de Comercio. report, “sales growth and profitability are 3.4 and 5.1 percentage points higher, respectively, among firms that use ICTs effectively in their businesses.”35 Further, advanced ICT—including social and mobile applications, Internet-based collabora- tion tools and cloud-based services—can play a particularly valuable role. A 2013 report36 from the Boston Consulting Group (BCG) looking at SMEs in several coun- tries (not including Colombia) concluded that “greater use of advanced IT by SMEs can potentially boost both growth and employment.”37 For this section we borrow BCG’s cate- gorization of SMEs as technology laggards, followers, and leaders to organize policy guidelines and apply them to business size categories and MinTIC outreach efforts. Obviously many individual businesses will not fall neatly into only one of these catego- ries, but nonetheless they offer a useful way to organize policy thinking. • Laggards show low levels of technology adoption, and have no online presence. Many may not even use computers or access the Internet, while some may make use of basic productivity tools. For this report’s purpose, we consider most microenterprises to be “laggards.” • Followers use established technol- ogy tools and may use some advanced services. Companies in this category probably maintain a website, use mobile devices, and competently use computers and productivity tools. For this report’s purpose, we consider most small enter- prises to be “followers.” Leaders use and are willing to access new technologies. Leading companies “employ a powerful combination of cloud- based services and solutions; online, social and mobile capabilities; voice over Internet protocol (VoIP) and messenger tools; and productivity hardware and software.” They may also be capable of building their own custom programs. Medium-sized enter- prises are most likely to be “leaders.” 35 The World Bank Group, ICT for Greater Development Impact. Sector Strategy, 2012. siteresources.worldbank.org/ EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/ Resources/WBG_ICT_Strategy-2012.pdf 36 The Boston Consulting Group, Ahead of the Curve. Lessons on Technology and Growth from Small-Business Leaders, 2013. bcg.com.cn/ export/sites/default/en/files/publications/reports_pdf/BCG_Ahead_of_ the_Curve_Oct_2013.pdf 37 BCG estimates SME revenue could increase by $770 billion in 5 countries surveyed and create 6.2 million jobs; in Brazil alone the estimate is 16 percent revenue growth and 2.5 million potential new jobs. Competitiveness D S D
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW32 Micro- and small businesses/ technology “laggards” Efforts to increase the use of ICT services among this group of SMEs should focus on basic computer literacy and Internet and mobile connectivity. Outreach and training should focus on individuals who run businesses rather than the enterprises themselves. MinTIC can adapt techniques developed through Redvolucion and IT Mujeres to raise awareness and provide hands-on training. MinTIC can also lever- age existing investments in community social centers to provide both access and training. MinTIC should consider part- nering in these ICT outreach efforts with other national or regional organizations, essentially providing an ICT-specific pro- gram via groups that are already set up to provide a range of business services to MSMEs, such as SENA. Small businesses/technology “followers” Efforts to increase the use of ICT ser- vices among this group of SMEs should address adoption of ICT tools and cloud- based services for operations, productivity, and growth. Presenting offerings by spe- cific business function—rather than ICT category—would make the outreach more compelling to business owners and man- agers. For example, a software application that can make payroll, planning, or sales activities work more efficiently and at a lower cost is likely to be more compelling than one focused on “IT for business.” Outreach, training, and ongoing sup- port services for integration should target managers and business owners and empha- Supporting Recommendation The Challenge: 40 percent of all MSMEs lack a broadband connection and many of the smallest businesses in Colombia do not see the value of ICT or Internet access. Proposed Solution: Continue to extend broadband access and adapt outreach techniques developed through Redvolucion and IT Mujeres to provide basic computer and Internet-for-business training, primarily at community centers. * size introduction of new services along with training and support in their use. Successful introduction of new technolo- gies for this type of business often requires involvement of trusted intermediaries and industry peers to convince business owners of the value of the technology and to raise their confidence levels before they will be willing to commit to an ICT tool. Options MinTIC may consider include: • Work with ICT vendors, suppliers, ser- vice providers, and resellers to offer short programs to introduce technologies and demonstrate how they can be used in the business environment. • Coordinate with business service pro- viders and chambers of commerce to offer workshops for executives to learn or upgrade digital skills. Offering spe- cific outcomes, such as “get your business online” or “complete your government procurement profile” or “get certified” can increase interest. • Provide MinTIC-approved content in the form of tool kits, access to online certi- fications or badging, case studies, and basic information on various enterprise ICT topics. • Offer innovation vouchers or incentives to subsidize purchases of ICT products and services. Even a small subsidy can lower the perceived risk of a technology purchase.38 Since MinTIC alone cannot provide this type of hands-on programming across the country, it will need to work on imple- mentation with partners. MinTIC may create training templates or modules that other organizations can access as needed, and broker relationships to qualified third- party organizations to provide actual training. MinTIC may also develop its own online or on-demand programs that individual enterprises or business orga- nizations can access, either through the proposed MinTIC Academy (as discussed in Framework Area 3) or another platform. This last approach would enable MinTIC to provide the service to enterprises, create a market for ICT services as it sets up the platform, and indirectly “train” businesses 38 Raul L. Katz. Broadband, Digitization and Development, in Jordán, Galperin and Peres, eds., Broadband in Latin America: Beyond Connectivity, ECLAC, 2013. www.cepal.org/publicaciones/xml/7/51197/ BroadbandinLA.pdf that access the online content or training modules.39 MinTIC can also build on its past success by expanding a pilot program that funded large enterprises in Colom- bia to increase ICT use among their suppliers. In collaboration with Innpulsa Mipyme and the enterprises themselves, MinTIC’s Mipyme Digital Program funded 25 projects (including a successful effort with Cemex) with a total investment of US$15.5 million. MinTIC estimates that 17 thousand MSMEs were impacted by this initiative. The large enterprises benefit- ted from more efficient interaction with enterprises in their value chain, while the MSMEs gained from cost reductions and/ or sales increases. Sophisticated small businesses/ technology “leaders” Technology leaders in non-ICT sectors, whether small or large businesses, are most likely to value and be in a position to contribute to regional cluster initia- tives, existing centers of excellence and national innovation programs. They are 39 Inter-American Development Bank, Zebalos et al, Bridging Gaps, Building Opportunity. Broadband as a Catalyst of Economic Growth and Social Progress in Latin America and the Caribbean. A View from the Industry, 2012; UNCTAD 2011 .http://idbdocs.iadb.org/wsdocs/ getdocument.aspx?docnum=36882814 Core Recommendation The Challenge: SMEs that are “technology followers” do not achieve their growth potential and represent a market development opportunity for the Colombian ICT sector. Proposed Solution: Create MinTIC- approved training and content to upgrade digital skills and encourage ICT utilization; provide vouchers to subsidize purchase of ICT products and services. * Supporting Recommendation The Challenge: SMEs that are “technology followers” do not achieve their growth potential and represent a market development opportunity for the Colombian ICT sector. Proposed Solution: Expand the Mipyme Digital pilot program to work with large enterprises to introduce ICT to MSMEs in their supply chains. * Competitiveness D S D D T T D D T ET D ET D S D
    • MIT TECHNOLOGY REVIEW 33GOVERNMENT POLICY REPORT also most likely to benefit from connections to the proposed MinTIC regional centers of innovation, university entrepreneurship and innovation centers, proof-of-concept centers, and advanced ICT certification initiatives. MinTIC should work with industry and government partners (such as SENA) to identify high growth-poten- tial SMEs and ensure they are included in Colombia’s innovation, ICT, and sector- specific cluster programs. Further, access to the proposed ICT-focused innovation investment programs, such as innovation vouchers or grants, would also encourage growth among this set of SMEs. From an ICT perspective, this is a demand-creation strategy, but we recom- mend implementing it as a business service strategy. Most business owners and man- agers who are not in the ICT industry are not interested in ICT per se and will not be motivated to expand ICT use unless it is presented as clearly helping them improve their business operations or growth pros- pects. Therefore, we recommend working in partnership with existing organizations already providing such services to MSMEs, such as SENA and chambers of commerce, to offer the following programs: 1. Adapt outreach techniques developed through Redvolucion and IT Mujeres to provide basic computer and Internet training to microenterprises and small businesses with low levels of technology adoption. 2. Deepen the ICT capacity of SMEs that already use some ICT tools by: • Coordinating with business-service providers and chambers of commerce to offer workshops or seminars for exec- utives to learn or upgrade digital skills Supporting Recommendation The Challenge: Advanced SMEs in non-ICT sectors offer the potential for substantial growth and employment, but their role and status in Colombia’s innovation ecosystem is not clear. Proposed Solution: Identify and engage SMEs with high levels of technology adoption in innovation and cluster initiatives; promote access to financing and ICT training programs. * • Brokering relationships with qualified third-party organizations to conduct the training • Providing MinTIC-approved content in the form of tool kits, access to online certifications or badging, case studies, and essential information on various enterprise ICT topics • Developing online training programs for a set of high-demand enterprise ICT topics • Offering innovation vouchers or incen- tives to subsidize purchases of ICT products and services. 3. Support sophisticated technology users among non-ICT SMEs by: • Connecting them to the regional clus- ter initiatives proposed in the Strategic Vision • Inviting them to join advisory boards for the proposed new network of regional centers of excellence • Expanding access to non-traditional financing options, such as innovation funds (as described in Section 3), tax incentives, and access to venture capital • Linking companies to ICT university graduates and to individuals who have completed MinTIC-supported train- ing and certification programs (as described in Section 4) 4. Expand the Mipyme Digital pilot program to work with large enterprises to introduce ICT to MSMEs in their supply chains. ICTandRegional Competitiveness n In addition to supporting Colombia’s strategic sectors and MSMEs, ICT can be deployed to support regional competitive- ness. This section examines Colombia’s regional productive bets and considers the role smart cities policies may play in regional development in the country. Colombia’s regional “productive bets” This policy team has neither visited the regions of Colombia nor interviewed business or government leaders from the regions. Therefore, this section summarizes the findings and recommendations of the executive summary of the Strategic Vision of the Software and Associated Services Sector Regionalized Marketing and Sales Plan (2013). This strategic vision document identi- fies one area of specialization for each of six regions: these will be the foci of actions to develop the IT industry by intelligent specialization, that is, “by identifying the endogenous capacities that the local industry has and thus … determine the dif- ferentiated software products and services that it will be able to develop with Colom- bian capabilities, and how to take them to national or international markets.” 40 Multiple studies have commonly identified the role of ICT in creating a “productiv- ity gap” in regional industry specialties. Therefore, a strategy of ICT development to fill that gap and enhance the position of competitive sectors in the country’s regions is appropriate. The sectorial “productive bets” that appear to have the “greatest potential in each region from the point of view of the development of the ICT sector”41 are: • Caribbean—logistics and transport • Antioquia—energy • Santander—mining and hydrocarbons • Cundinamarca—banking and financial services • Coffee Region—bio, agro-industry • Pacific Region—agro-industry. The plan takes the approach of orga- nizing strategies around three types of objectives for each region: • Increase competitiveness and innova- tion among companies in the sector (through developing customers and mar- kets, developing specialized products and services, internal process efficiency and innovation, and training) • Strengthen the IT sector through asso- ciativity (alliances and collaboration with organizations in the cluster) • Promote the companies of the sector (marketing, media and communication). We do not have sufficient background to evaluate the sectorial choices in each region. However, we do support the overall approach as an appropriate means both to 40 APCA Consortium ETI, 2013, p. 3. 41 APCA Consortium ETI, 2013, p. 31. Competitiveness ET T D ET ET
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW34 develop the ICT industry and to enhance competitiveness in other sectors through ICT. If MinTIC had not initiated this pro- cess, we would have recommended it. One area of potential weakness is the report’s posture that supporting the growth of businesses in the productive sectors is a means of creating a strong ICT industry, rather than vice versa. While we under- stand this is part of MinTIC’s objective, we also believe MinTIC wishes to extend ICT use to multiple industries. We therefore advise taking a more customer-focused, demand-side approach to addressing the clusters’ needs rather than risk being per- ceived as pushing an ICT-only agenda. This is a minor criticism of an otherwise excel- lent plan and report. The Commerce Ministry has also worked with regions to define the economic sectors that are important for regional competitiveness, listing two routes per department.42 MinTIC also recently con- tracted with McKinsey & Co. to help four departments define their strategic sectors in which ICT can leverage science, tech- nology and innovation. The results were: • Boyacá: Agro-Industry • Caldas: E-Government and smart cities • Quindio: Agro-Industry • Risaralda: BPO-ITO. 42 The 36 routes are not repeated here. For more information, please refer to Programa Rutas Competitivas presentation from innpulsa, MinCIT . www.innpulsacolombia.com/downloadableFiles/convocatorias/75111586_ Presentacion%20Rutas%20Competitivas%20-%20Feb%2012%202013. pdf Supporting Recommendation The Challenge: Engaging the private sector and other stakeholders (including universities) to create a demand-driven ICT strategy for regions and strategic sectors. Proposed Solution: Adopt a bottom-up approach with regions, which employs local stakeholder- and user-driven priorities, and which must identify specific activities to be undertaken as part of sectoral and regional ICT initiatives. Ensuring that customer-focused, demand-driven sets of priorities will receive due attention, rather than attempting to create priorities from the top down, is essential to securing broad buy-in for the Vive Digital II agenda and achievement of MinTIC’s goal of fostering pervasive digital culture across Colombia. * The next two subsections address steps MinTIC can take to make these regional initiatives successful, with a focus on build- ing partnerships and encouraging private sector involvement. Jalisco example The development of the innovation ecosys- tem in Jalisco, Mexico is well-known to the project team and the story is not repeated here. However, we do highlight a few les- sons from that effort that are consistent with our experience in regional economic development and should be considered in the Vive Digital 2 strategies: • Regional leadership: ·· Steady consistent leadership with joint commitment to a long-term vision is better than a quick-hit approach. ·· Capacity building and developing/ nurturing other committed staff within an organization is critical so a firm is not reliant on one person. ·· Participants should become good resources for others, such as the investment promotion agency. ·· It is highly important to document and report results. • Private sector participation: ·· The private sector should initiate and drive projects with a specific problem in mind and a strong orga- nizing principle and motivator. ·· Talent (training and development) is an area where many players can come together and cooperate, even competitors. This is valuable to large and small firms alike. ·· Anchor companies are invaluable. Study how to make it worthwhile for them to get involved; attract them with elite gatherings, camaraderie, feelings of success, make careful and efficient use of their time—make it compelling to participate. Regional cluster development Team experience in working with economic development organizations to support the ICT industry and develop regional clusters suggest these additional lessons learned: • Involve a broad range of players but cre- ate a core team for implementation of cluster-specific strategies. • Identify a champion or leader plus an appropriate organization to “house” the initiative. This will not necessarily be the same type of group in every region. The ideal person has connections with and commands respect from government, academia and industry. The champion need not be MinTIC itself. • Make communication a key function —so participants know what’s going on and derive a sense of progress. • Organize activities around the needs of the business, not government priorities. Since businesses are the entities that gen- erate jobs and output and must become more productive—the measures by which success will be determined—they should be the focus of activity. Make their goals your goals, not the opposite. • Prioritize; focus first on a few strategies, demonstrate some successes, and build from there. • Government’s role is generally as a conve- ner , who can address weaknesses in the business environment. • Universities can play an important role, but may need support (financial and otherwise) to improve their own innovation capacity in areas such as technology transfer, entrepreneurship centers, related teaching programs/ coursework, and cluster-specific research centers. • Achieving socioeconomic outcomes takes time; results will not be seen in a one to two year time frame. Stakeholders must have realistic expectations of project outcomes. Competitiveness S D D Mexico Jalisco
    • MIT TECHNOLOGY REVIEW 35GOVERNMENT POLICY REPORT SmartCities n The idea of smart cities is based on the use of technology to enable a more effec- tive, efficient government.43 The emphasis is on investing in products and services, especially on ICT that is embedded in city infrastructure to help cities gener- ate and use data to improve city systems, typically in the areas of transportation, energy use, and the built environment. Some leading companies are involved in smart cities initiatives (IBM, Cisco, Sie- mens, Microsoft, General Electric, and Hit- achi, among others). The Trends report for this project addresses smart city initiatives in Santander, Spain; Singapore; Rio de Janeiro; Estonia; Nairobi; Barcelona; and Songo, Korea as well as university pro- grams that conduct research and/or pro- vide training on urban analytics. Those findings are not repeated here. MIT also has several relevant smart- cities programs including: • City Science43a – “Leveraging advances in data analysis, sensor technologies, and urban experiments, City Science will provide new insights into creating a data- driven approach to urban design and planning. The City Science Initiative at the MIT Media Lab is a unique network 43 However, there is no single definition for the term smart cities. As this is summarized in a January 13, 2014 article from The Atlantic Cities, “Across the globe, technology companies of all sizes have taken aim at the burgeoning smart city market, a nebulous term that can include anything from complex networks of government-controlled sensors and cameras to a parking meter that sends you a text message when you run out of time on the meter.” of research groups experienced in the design of technology and infrastructure, the analysis of big data, and the develop- ment of rigorous scientific theories. The City Science Initiative at the MIT Media Lab provides an interdisciplinary nexus where these research networks join to improve the design, livability and under- standing of high performance urban environments.” The six research themes are: urban analytics and modeling; incentives and governance; mobility net- works; places to live and work; electronic and social networks; energy networks. (Professor Sandy Pentland) • Smart Cities43b – “The Smart Cities Group pursues sustainability, livability, and social equity through technological and design innovation. We take the par- ticular perspective that cities are systems of systems, and that there are emerging opportunities to introduce digital ner- vous systems, intelligent responsiveness, and optimization at every level of sys- tem integration – from that of individual devices and appliances (a traditional concern of the Media Lab) to that of buildings, and ultimately to that of com- plete cities and urban regions.” • SENSEable city lab43c – Studies changes and use in “the increasing deployment of sensors and hand-held electronics in recent years” in the built environment. However, an October 2013 article from the MIT Sloan Management Review described concerns with smart city pro- grams, including overly centralized technocratic governance, corporatization of city government, and technology lock-in (given that global software and hardware companies are heavily promoting smart city agendas); the specter of Big Brother- type surveillance; and possible service crashes. Smart-city programs are often about internal measures of efficiency and fis- cal savings in the provision of municipal services (as in Santander, for example) or about data and technology in urban systems. However, MinTIC’s interest is SOURCE:PIKERESEARCH Competitiveness Some of the world’s largest IT companies are getting into the smart cities infrastructure business. Rather than simply supplying technology, these companies are also providing decision support, using analytics and predictive modeling to suggest interventions in transportation, energy, and social services. One option for cities wishing to implement smart infrastructure is public-private partnerships, typically with large international corporations like Cisco or Siemens. 2012 2013 2014 2015 2016 2017 2018 2019 2020 North America Europe Asia Pacific Latin America Middle East and Africa $25 $20 $15 $10 $5 0 ($BILLIONS) 43a www.cities.media.mit.edu 43c www.senseable.mit.edu43b www.smartcities.media.mit.edu Developing better strategies for the creation of new cities is a global imperative. See City Science, an MIT Media Lab Initiative at: http://cities.media.mit.edu Smart City Technology Annual Revenue by Region, World Markets: 2012-2020 COPYRIGHT2012CITYSCIENCEINITIATIVE,MITMEDIALAB
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW36 in regional competitiveness, ICT indus- try growth, and e-government initiatives. Any MinTIC-supported smart cities initiative, therefore, should emphasize these elements. For example, a smart city program that emphasizes sensor installation, with data monitored at one central location using a system procured from a nonCo- lombian company may be worthwhile in itself to a city, but would not serve MinTIC’s objectives. By contrast, a pro- gram that encouraged using local ICT firms to develop an improved way to provide a specific municipal service that might be applied across several cities would be of greater value. A university-centered pro- gram that developed standards, conducted research, or prepared individuals to work on ICT and data issues at the munici- pal level would also support MinTIC’s objectives. The characteristics and content of a national set of guidelines for smart cities44 should therefore include: • Approaches to address alternative ener- gies, public transport, logistics and planning • Plans to improve the energy efficiency of buildings and districts • A review of opportunities to integrate energy, ICT and transportation infra- structure and processes • Development of public-private partner- ships for implementation • Creation of governance structures, 44 European Innovation Partnership on Smart Cities and Communities, Strategic Implementation Plan, October 2013. ec.europa.eu/eip/ smartcities/files/sip_final_en.pdf Anthony Townsend, interviewed in The Atlantic Cities, The Rise and Fall and Eventual Rise Again of the 36 Smart City, January 13, 2014 www.theatlanticcities.com/technology/2014/01/ rise-and-fall-and-eventual-rise-again-smart-city/8081/ Irving Wladawsky- Berger in The Economist debate on Smart Cities, Are Smart Cities Empty Hype? , December 2013. economist.com/debate/days/view/1051 Support Recommendation The Challenge: Implementing a nationwide smart cities program that meets varied municipal needs and achieves MinTIC’s broader Vive Digital 2 goals. Proposed Solution: Pursue a platform approach that provides top-down governance while allowing bottom-up innovation; engage universities and private industry in order to create a smart cities ecosystem. * especially for city functions that are necessarily top-down • Processes to engage citizens at both the policy l and data-gathering levels • Engagement of universities and research centers as well as government and private industry to form an ecosystem, so the ini- tiative is not vendor-specific. • A platform approach, rather than a strict top-down or bottom-up implementation program. A more decentralized open grid or web approach (as opposed to a central- ized “mainframe” approach) allows more complexity and resiliency in systems than a controlled hierarchical system • Recognition that implementation will vary by city; there is no one-size-fits-all smart cities strategy • Careful selection of private sec- tor providers, evaluating potential for scalability and integration as well as technical capability • A connection to several of the e-govern- ment initiatives recommended below, especially the proposed center of excel- lence focused on ICT in government, open-data policies, data privacy policies, and open-data communities of practice. ICTAdoptionin Government n This section looks at e-government, the use of information technology within gov- ernment processes and the provision of ser- vices to citizens and industries via online technologies. As described in the Trends report, “emerging and middle economies have focused on IT as a way to stream- line processes, improve citizen access to services, and decrease corruption” and to improve citizen engagement and demo- cratic participation. Moreover, ICT in gov- ernment can increase the country’s overall ICT utilization. Placing public services on line has been described as “the govern- ment’s best tool to boost usage” because it gives people a reason to uses online ICT services.45 A recent UN report noted that e-government applications encour- age greater digital involvement and digital literacy.46 45 Booz & Co., This Is for Everyone: The Case for Universal Digitisation,(video) 2012. www.booz.com/global/home/what-we-think/ multimedia/video/mm-video_display/case-universal-digitisation 46 Jordan, Galperin and Peres, eds. Colombia has been recognized as an e-government leader in Latin America by the UN Department of Economic and Social Affairs (UNDESA), ranking sec- ond in the region and 43rd in the world in e-government development. Colombia was also ranked a Top-20 country in online ser- vice delivery (between Israel and Sweden) and a Top-10 country for citizen inclusion and e-participation.47 The Colombian model of online govern- ment has five components: information, interaction, transaction, transformation, and democracy. Colombia and MinTIC have already initiated several major online government programs, including the Crys- tal Ballot Box, online notary-public service, an electronic system of public contract- ing (SECOP), and systems and services for national emergencies.48 The e-government program, Gobierno en Linea, is embedded in both the National Development Plan 47 UN Department of Economic and Social Affairs (UNDESA), United Nations E-Government Survey 2012 unpan1.un.org/intradoc/groups/ public/documents/un/unpan048065.pdf 48 Vivo Vive Digital, English, MinTIC, Feb. 2011 (9/2/13). http://www. mintic.gov.co/index.php/mn-english-international Competitiveness Top 20 countries in online service delivery Country Online service index Republic of Korea 1.0000 Singapore 1.0000 United States 1.0000 United Kingdom 0.9739 Netherlands 0.9608 Canada 0.8889 Finland 0.8824 France 0.8758 Australia 0.8627 Bahrain 0.8627 Japan 0.8627 United Arab Emirates 0.8627 Denmark 0.8562 Norway 0.8562 Israel 0.8497 Colombia 0.8431 Sweden 0.8431 Estonia 0.8235 Saudi Arabia 0.7974 Malaysia 0.7908 U SOURCE:UNE-GOVERNMENTSURVEY2012
    • MIT TECHNOLOGY REVIEW 37GOVERNMENT POLICY REPORT and MinTIC’s Vive Digital. Through 2012 it demonstrated an increase in the number and quality of online offerings, engaged 50 percent of citizens and 78 percent of busi- nesses in an online channel, and expanded use of the Government Intranet Data Cen- ter, generating substantial savings in ICT infrastructure spending.49 Front office The term front office refers to e-government services and interfaces with citizens, and includes open-data topics. Since MinTIC and the government of Colombia have already identified and/or implemented many e-government programs, this sec- tion will not address the provision of basic citizen and company services. Instead, it focuses on two e-government challenges that MinTIC has identified: 1) implementa- tion of e-government across ministry lines and at the local and regional level, and 2) open data. Expanding ICT implementation in government ICT implementation in government—at the national or local level—is an ongo- ing effort. It is not a “program” that can be “completed.” Just as enterprise ICT is ever-evolving, so is ICT for government. Accordingly, it is not enough to allocate money or create programs. Governments 49 Diego Molano-Vega, Colombia’s Digital Agenda. In, The Global Information Technology Report 2013:. Growth and Jobs in a Hyperconnected World, INSEAD, World Economic Forum. 2013. www3.weforum.org/docs/WEF_GITR_Report_2013.pdf must also plan for the long term by estab- lishing a technology road map, building political support, nurturing institutions and ICT leaders, and continuously invest- ing in hardware and software services.50 The UN E-Government Survey notes that vanguard countries are taking “whole-of- government” approaches (as opposed to “siloed” or ministry-by-ministry e-govern- ment processes) and implementing single portals for citizen services.51 MinTIC is in a good position to take this role within the Colombian government, whether through a formal CIO function or a less formal inter- ministry working group. Similar challenges exist at the local and regional levels of government, but often with the added difficulty of a lack of understanding among elected officials of either the technology or the commitment required for effective implementation. Canada’s E-Governance for Municipal Development initiative addresses these challenges by focusing on both capacity- building at the local level and implementing an open-source based software package of basic systems for property taxes, business permits and licenses, and a “Treasury Oper- ations Management System.”52 MinTIC itself may not be able to implement e-government at the local and departmental level, but it can provide funding, guidelines, templates, share best practices and case studies, and even facili- tate development of open-source software packages specifically for local govern- ment use. Preparing policy guidelines that 50 UNCTAD, 2011. Chapter 4. 51 UNDESA 52 Ibid. Core Recommendation The Challenge: Remaining an international leader in e-government by improving services to citizens while enhancing operational efficiency. Proposed Solution: Formalize MinTIC as the lead organization for e-government initiatives at the national level to implement a “whole-of-government” approach and develop a long-term technology road map for the central government. * address data practices and privacy issues for use by local governments would also be a valuable contribution.53 Training for local government CIOs, staff, and leaders will be addressed in Framework 4. Other specific tasks include: 1. Establish a center of ICT innovation dedicated to regional and local government issues that could develop standards, conduct research, and train individuals to work on ICT and data issues for e-government at the regional and municipal levels. 2. Apply the CEMEX model to local governments and identify a specific municipal service that can be improved through ICT and for which MinTIC can convene ICT service providers to create a solution that can be applied nationwide. 3. Provide funding, guidelines, templates, best practices, and case studies, and facilitate development of open-source software packages for regional and municipal government use. To generate support beyond MinTIC for both levels of effort, ICT programs must be tied to political and programmatic areas of interest in the other organizations, including: • Expected cost savings • Raising revenues • Achieving higher customer satisfaction levels • Ability to meet national planning goals • Support for presidential priorities of transparency and accountability. Appeals can also be made to higher- level goals. For example, it has been reported that when online company regis- tration was introduced in Colombia, there was a 20 percent annual increase in the number of registered companies—a tre- mendous gain for the national economy.54 Finally, it will be necessary to establish pol- icies that address concerns over security and privacy. 53 Ibid, chapter 6. 54 Ibid. Competitiveness Countries offering a one-stop-shop 20122010200820052004 140 130 120 110 100 90 80 70 60 50 Number of countries 135 123 118 84 63 SOURCE:UNE-GOVERNMENTSURVEY2012
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW38 Open Data Open data in government has policy, implementation, and access and usability aspects. The term also has many different meanings, depending on who is using it. US policy defines open data as pub- licly available data structured in a way that enables the data to be fully discoverable and usable by end users. Executive agen- cies are directed to “manage information as an asset throughout its life cycle to pro- mote openness and interoperability, and properly safeguard systems and informa- tion.” This is important because “making information resources accessible, discover- able and usable by the public can help fuel entrepreneurship, innovation, and scien- tific discovery.”55 The OECD, through its Open Govern- ment Data project, defines government data as “any data and information pro- duced or commissioned by public bodies, while open data” are data that can be freely used, reused and distributed by anyone, only subject to (at the most) the require- ment that users attribute the data and that they make their work available to be 55 Open Data Policy: www.whitehouse.gov/sites/default/files/omb/ memoranda/2013/m-13-13.pdf shared as well.”56 The OECD is working to establish a knowledge base on open- government-data policies, strategies, and initiatives and to develop a methodology to assess the creation of “economic, social and good governance value” through open- data initiatives. Yet another approach to open data focuses more on transparency. For exam- ple, the Sunlight Foundation’s open-data policy guidelines57 stress release of and access to data held or generated by govern- ment, with its use as a secondary objective. These guidelines consider what data should be public (emphasizing that the default position should be open); how to make data public; and how to implement policies to release data. Much of the writing on open data focuses on its usability and the opportu- nities for businesses and ICT developers to turn the data into something valuable. One recent industry white paper states bluntly that while Government transpar- ency is increasingly important to citizens, it is a missed opportunity if you make data sets public without a broader strategy to crowdsource ideas, access the talents of your local developer community, and enable businesses to use the data to develop commercial services. 58 The Code4America programs described in the Trends report leverage city data to design apps to solve real problems, while also creating poten- tial business opportunities for developers. 56 www.oecd.org/innovation/public-innovation/opengovernmentdata.htm 57 sunlightfoundation.com/opendataguidelines/ 58 Ruthbea Yesner Clarke, Smart Cities and the Internet of Everything: The Foundation for Delivering Next-Generation Citizen Services. White Paper GI243955. IDC Government Insights, 2013. www.slideshare.net/iotwf/ idc-white-paper-smart-cities-and-the-io-t-27685693 Supporting Recommendation The Challenge: Implementing an open-data policy to achieve greater transparency in government while also generating business opportunities for the ICT sector. Proposed Solution: Prepare policy guidelines addressing open-data practices and privacy issues, for use by government entities at all levels; create and foster open-data communities of practice across Colombia. * It is our understanding that MinTIC is interested in a combination of transparency and use of data for business opportunities and application development. Accordingly, some policy guidelines for consideration are: • The Colombian government should adopt a positive and proactive policy towards development, use/adoption, maintenance and sharing of open data for commercial and not-for-profit appli- cations that would apply to the national government, regional and city govern- ments, and public health and higher education institutions. This could include establishment of: ·· A standard open-data utilization agreement framework ·· A standardized open-data applica- tion programming interface (API) template for open-data datasets ·· Policies regarding data ownership, sharing, maintenance and updating ·· Establishment of a national open- data online platform and reference repository. MinTIC could also start to foster open- data communities of practice across Colombia, building on previous efforts to connect developers with government needs. • MinTIC could also play a leading role in bringing national and departmental government leaders together on open- data initiatives. For example, MinTIC could survey government entities to learn which current and future data sets might be amenable to open-data utilization, and begin to identify potential user commu- nities. An online summary database of existing and future open-data datasets would be valuable to both government and external data users. MinTIC could also organize training and workshops to bring together government ICT man- agers, the ICT industry, and other data users. Back office The term back office characterizes the ICT infrastructure, architecture, and security procedures needed to maintain and oper- ate e-government services in an efficient Supporting Recommendation The Challenge: Overcoming a lack of ICT experience and expertise to implement e-government initiatives at the regional and municipal levels. Proposed Solution: Establish a center of ICT innovation for e-government: identify a specific municipal service that can be improved through ICT for which MinTIC can convene ICT service providers to create a solution that can be applied nationwide. * Competitiveness T T T
    • MIT TECHNOLOGY REVIEW 39GOVERNMENT POLICY REPORT and secure manner. As the Trends report described, back-end systems in government ICT are evolving, from siloed software sys- tems designed and maintained internally, to accessing the best-practice applications that already exist in the market. Citing the World Bank, in the open-source market and the software-as-a-service space, gov- ernments can buy IT services rather than produce and manage IT services them- selves. The United Nations Conference on Trade and Development (UNCTAD) concurs, stating that e-governance (espe- cially for municipal governments) should use open standards, open innovation, and open-source software whenever possi- ble.59 Governments may, however, need to develop capacity to manage the transi- tion. The government role will also evolve to provide necessary hardware (including data centers) in a cost-effective manner and to implement policies (or support laws) to govern transactions, ensure system secu- rity, and to manage data privacy. Again, MinTIC may be in the best posi- tion within the Colombian government to provide this back-office support at the national level and back-office guidance for governments at the departmental and local levels. Specifically, the Colombian govern- ment should adopt a positive and proactive policy towards development, use, and shar- ing of open-source software and related code that would apply to all government levels, public health and higher education institutions. This could include a standard open-source agreement framework and documentation across government agen- cies, as an OSI-approved software license. As in the other subcomponents of this pil- lar, MinTIC could also serve as a national repository and online platform for open- source material and build communities of practice across Colombia. 59 UNCTAD:Information Economy Report 2012. The Software Industry and Developing Countries As part of this new national policy, MinTIC should consider developing or sponsoring the development of a new national open-source portal where soft- ware developers and teams at government organizations, universities and compa- nies as well as the general public can find, create, archive, and publish free open- source software. Commercial providers that currently support open-source shar- ing platforms for developers around the world may offer MinTIC a quick and rela- tively low cost approach to creating and operating a reliable and trusted Colombia- focused portal in the near term. MetricsandPerformance Impacts n Vive Digital 2 will ultimately be assessed by metrics related to output, job and business creation, and poverty reduction, but these are not appropriate measure- ments in the short term. Each initiative within this area will also require its own metricssuchasreductionintimeforspecific e-government transactions, or decline in waste among agricultural exports, but these metrics should be based on the demand- driven strategies developed for each region, sector, or activity. Here we focus on several process measures for suggested programs and approaches. They include: Partnerships • Meetings attended • Organizations joined • Action steps generated and implemented • Projects defined Core Recommendation The Challenge: Lack of capacity to implement cost-saving open- source software and related code for e-government. Proposed Solution: Adopt a positive and proactive policy towards development, use, and sharing of open-source software and related code that would apply to all government levels, public health and higher education institutions; support development of a national open-source portal. * • Formal agreements on cooperation signed • Private companies involved. Business services • Training modules offered • Workshops (number offered, attendance) • Tool kits prepared • Use of innovation vouchers (total value, number used, outcomes) • Number of companies reached • Adoption of enterprise software by businesses • Enterprise use of ICT by functional area; impact on sales, revenues and hiring • Enterprise investment in ICT hardware and software. Government • Services provided to other ministries • Creation of an association of CIOs or other IT managers from different gov- ernment levels • Training modules offered • Workshops (number offered, attendance) • Tool kits prepared • Government investment in ICT • Number of open data projects • Number of open-source projects and degree of re-use by departments and cities. MinTIC has also requested specific goals and targets for each category. Pro- posed targets associated with the three of the four primary areas of interest (agri- business, SMEs, and ICT in government) are below. The primary goal for the fourth area, smart cities, is creation of the national smart-cities policy. Agribusiness • Increase in the number of small agribusi- nesses using computers • Increase in the number of all agribusi- nesses connected to the Internet • Number of agribusinesses participating in training • Number of agribusinesses accessing Internet-based services and information • Number of new applications created • Change in revenue or employment for MinTIC program participants versus a control group Competitiveness T
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW40 SMEs • Increase the number of SMEs engaging in e-commerce by 2018 • Increase broadband penetration among SMEs from 60 percent in 2014 to 70 per- cent in 2018 • Number of ICT and non-ICT SMEs involved in regional ICT and innovation initiatives • Number of non-ICT SMEs receiving basic ICT training • Number of SMEs accessing MinTIC- sponsored training on enterprise ICT topics • SME use of innovation vouchers or other funding to increase spending on ICT products and services • SME spending on ICT products and services. ICT in Government • Raise citizen engagement from 75 per- cent in 2014 to 90 percent in 2018 Raise the number of businesses engaged in an online government channel from 50 percent in 2014 to 90 percent by 2018 • Make Colombia the top-ranked country in Latin America; achieve and maintain an overall Top-20 ranking worldwide; and maintain a Top-20 ranking for online service delivery in the UNDESA e-government survey • Increase the number of local govern- ments offering online services to citizens from 50 percent in 2014 to 100 percent in 2018 • Number of federal, regional, and munic- ipal government agencies adopting open-data policies by 2018 • Number of regional and municipal gov- ernments with a chief information officer by 2018. DEMAND FOR INNOVATION: Users of New Applications, Services & Products ■ Education & Training Sector • Primary & Secondary Schools • Universities • SENA ■ Health-care Sector • Hospitals & Clinics • Patients, Nurses, Doctors, Administrators ■ Safety & Security Sector • Policy & Army ■ Public Services Sector • Cities & Regions ■ Private Sector • Agriculture • Financial Services • Mining & Extraction • MSMEs, SMEs, Large Enterprises • Tourism SUPPLY OF INNOVATION: New Companies, Services, Products & Technologies ■ Apps.co Companies and Projects ■ New MinTIC Scalable ICT Platforms • MinTIC Academy Platform • MinTIC Crowdfunding Platform • MinTIC Open Source Platform • MinTIC Open Data Platform ■ Apps Stores ■ University Entrepreneurship and Design Programs & Centers ■ E-Government Services Vive Digital 2: Connecting “Innovation Supply” with “Demand For Innovation” Supply Side Demand Side • Matching and Bringing Together Supply & Demand for Innovation • Demand Discovery and Stimulation • New Scalable ICT Platforms and Programs VIVE DIGITAL 2 Competitiveness Vive Digital 2 must connect and bridge the gap between existing and new sources of innovation—the Apps.co program, universities, start- ups, enterprises, and government ICT programs—with the users of new innovative applications, services, and products. Users include common citizens, consumers, households, industry, and public sector organizations in cities, regions, and rural areas. COPYRIGHT–BURTONHOYTLEE2014.ALLRIGHTSRESERVED(EDITSANDMODIFICATIONSPERMITTED).
    • ICT&Industry IN THIS SECTION Overview The ICT Sector as a Driver of Growth The ICT Industry in Colombia: Vive Digital 1 and Beyond ICT in Colombia: Regional Perspectives Regional Centers for ICT Innovation University Entrepreneurship and Innovation Centers Proof-of-Concept Centers ICT and Innovation in the Private Sector: R&D at Startups, SMEs, and Large Companies Government Procurement as a Demand Stimulus ICT and Entrepreneurship ICT Start-Up and SME Training, Coaching, and Mentoring ICT Start-Up and SME Business Finance Metrics and Performance Impacts Developing a more competitive, resilient, and innovative homegrown ICT sector is a primary goal of MinTIC and other key players that support the development of Colombia’s innova- tion and entrepreneurship-focused ecosystems. MinTIC and its partners have already initiated several important new efforts focused on this pillar of the Vive Digital framework. These include efforts such as the Apps.co program and the recently released strategic vision of the software and associated services sector. This section presents additional ideas for enhancing the competitiveness of Colombia’s emerging ICT sector. STUARTBRADFORD
    • * * Core Recommendations Build regional ecosystems by investing in several initiatives that strengthen regional ICT clusters and related industries. These include: 1. Regional centers of ICT Innovation that build connections between ICT, local anchor employers, and key regional industry clusters 2. University entrepreneurship and innovation centers that strengthen university capacities to train future entrepreneurs, to commercialize technology and to nurture regional innovation ecosystems 3. Proof-of-concept centers; a small number of centers focused exclusively on the commercialization of technology and R&D developed at universities. 4. Support ICT-focused innovation investments at small and medium-size enterprises (SMEs). This fund could be structured in several ways—as a traditional grant program, as a challenge prize competition, or as an innovation voucher program, where firms use publicly-backed vouchers to purchase services or tools on the open market. Supporting Recommendations 1. Develop new demand-driven innovation strategies that require government ICT purchases to provide preferences or other support mechanisms to local ICT firms, especially SMEs. 2. Create a MinTIC entrepreneur-in-residence program that develops a network of local and diaspora entrepreneurs who can serve as coaches and mentors to firms in the Apps.co program and other business incubation and acceleration programs. Support ICT business training for other business executives as well. 3. Invest in professional development for seed funds, early-stage funds, venture funds, and angel funds. Sponsor training courses and fellowship programs that help spur the creation of new angel investor networks and encourage Colombians to pursue careers in venture and equity capital–related fields. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW42 ICT & Industry U U D D
    • MIT TECHNOLOGY REVIEW 43GOVERNMENT POLICY REPORT SOURCE:THEEUROPEANAPPECONOMYREPORTBY VISIONMOBILEANDPLUMCONSULTING WWW.VISIONMOBILE.COM/EUROPEANAPP TheICTSector asaDriverofGrowth n In creating MinTIC in 2009, the Colom- bian government recognized that informa- tion and communications technologies are a critical component in national, regional, and local economic growth. ICT is not just a tool or a technology; a thriving ICT sector creates new jobs and new innovations and helps generate new wealth. Extensive economic research high- lights three important roles for ICT as a driver of economic prosperity. At the most straightforward level, ICT indus- tries and related clusters create jobs and economic activity. Today, Colombia’s ICT related sectors include roughly two thou- sand firms who collectively generate nearly $2 billion in annual sales. In regions like Antioquia and in major urban centers like Bogotá, Cali, and Medellin, emerg- ing ICT clusters are providing good jobs and good career options for local residents. These ICT jobs have important spillover effects, stimulating growth in other indus- tries. It is estimated that every ICT job in Latin America helps support an additional 2.4 jobs in other industries, related and unrelated.1 ICT remains a driver of economies around the globe. According to the 2012 Organization for Economic Coopera- tion and Development (OECD) Internet Economy Outlook, ICT sectors account for almost 9 percent of total business value added within OECD nations.2 This share has enjoyed sustained and steady growth for the past 15 years, even in the midst of the 2007-2008 economic down- turn. Within ICT sectors, the global apps economy has been growing especially fast. The Apps economy generates significant jobs around the world. Within the EU, as shown in the following diagram, it supports roughly 794,000 jobs. ICT also stimulates the economy by providing new technologies, products, and services to businesses, households, and consumers. Thanks to ICT, businesses can more effectively transport goods and track their activities, and consumers can com- 1 Molano, p. 1. 2 Organization for Economic Development and Cooperation (OECD), Internet Economy Outlook 2012, (Paris: OECD, 2012), p. 32. municate, learn in new ways, and enjoy new tools and venues for entertainment. Colombian consumers have been embrac- ing ICT enthusiastically. Today, Colombia has one of the fastest growing online pop- ulations and its ICT infrastructure is also expanding at a massive rate. In addition, per capita ICT investment rates are grow- ing. For 2013, growth rates in Colombia are expected to reach 13 percent, a rate only surpassed by Brazil and Chile.3 As more Colombians enjoy access to the Internet and other ICT tools, they will enjoy even greater benefits from ICT. The Internet is advancing to a new stage of development. It is no longer simply a data network that connects PCs with wires; it now links a plethora of devices via many means. Along the way, new uses and new markets are emerging. ICT also helps spur local entrepreneur- ship. Entrepreneurship is booming around the world, and new programs to support business startups, such as Colombia’s Apps.co effort, are also gaining traction. Many of these efforts target ICT-focused startups, since these sectors have a higher than average rate of new business start- ups. Because ICT-focused businesses tend to have lower barriers to startup and new market entry, they attract entrepreneurs who bring new ideas, new products, and new technologies to the marketplace. Innovations in ICT can also have impor- tant spillover effects to more traditional industries as these sectors embrace new tools, services, and processes first pio- neered by ICT-focused entrepreneurs. 3 Colombian Ministry of Information and Communications Technologies (MinTIC), Strategic Vision of the Software and Associated Services Sector: Regionalized Marketing and Sales Plan of the Sector in Colombia, translated executive summary, 2013, p. 19. In nations with high rates of digitiza- tion, these entrepreneurial ventures are often among the fastest growing firms as well. For example, the 2013 Inc. 5000 list ranks the 5 thousand fastest-growing companies in the United States. The lat- est listing includes heavy representation of ICT-related firms—40 software firms, 54 IT services companies, and 2 computer hardware firms. Collectively, these firms generated annual revenues of nearly $2 bil- lion. Because of their rapid growth, these firms tend to attract large shares of ven- ture capital and other forms of investment. In the US, ICT firms receive more than 50 percent of all total US venture capital investments.4 TheICTIndustryin Colombia:ViveDigital1 andBeyond n In recent years, Colombia and many other nations in Latin America have developed emerging ICT industries and business clus- ters. These clusters, regional agglomera- tions of ICT firms and related industries and support services, have been important drivers of innovation, new business forma- tion, and new job creation. Within Latin America, Costa Rica, Uruguay, Mexico, and Chile have been particularly success- ful in nurturing strong ICT clusters. 5 Their governments, at the national and regional levels, developed effective near-shoring strategies to capitalize on proximity to large markets in the US and elsewhere, and succeeded in attracting new foreign investments and in developing a vibrant 4 Data from PricewaterhouseCoopers MoneyTree Reports at www.pwcmoneytree.com/MTPublic/ns/ index.jsp 5 For background, see Luciano Ciravegna, Promoting Silicon Valleys in Latin America, (London: Routledge, 2012). • 794,000jobs across the whole economy • 529,000direct App Economy jobs, 60% of which are developers • 22% of the global production of app-related products and services comes from the EU • Revenues of more than €10 billionper annum In the EU28 we estimate that the App Economy contributes: ICT & Industry
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW44 homegrown base of ICT-focused firms as well. The Vive Digital 1 effort has helped create similarly promising conditions for ICT clusters in Colombia. These efforts build on wider national efforts to nurture innovation clusters, which began in the late 2000s with the 2008 National Policy of Competitiveness and Productivity and the reorganization of science and technology policy organizations beginning in 2009. These reforms created a robust national system of innovation for Colombia, with the capacity to set national policy direc- tion and to help stimulate and support regional innovation strategies and bur- geoning regional industry clusters. Using their “Business Plans for World- Class Sectors” strategies, Colombian policy makers provided specialized support and incentives to several industry clusters where Colombia enjoyed unique com- petitive advantages. These included both emerging sectors, such as cosmetics, health tourism, and ICT, and more mature sectors such as petrochemicals and plastics, jew- elry, and textiles. Within ICT, MinTIC has sought to nurture the development of a digital ecosystem for the ICT sector, as shown in Figure 2. This ecosystem includes multi- ple dimensions such as entrepreneurship development, new R&D investments, new regional strategies, and talent development. As a result of positive market trends and a supportive policy environment, Colombia’s overall ICT performance has improved and a number of strong ICT-related clusters have emerged. In par- ticular, Bogotá, Cali, and Medellin have created strong local clusters of ICT firms. While progress has been made, a num- ber of challenge areas remain. Overall, Colombia’s ICT industry remains predomi- nantly focused on the domestic market, with limited capacity to compete in global ICT markets. Products and services are focused on customized software develop- ment and the marketing and packaging of software developed elsewhere. Moreover, linkages with other key players, especially in universities, and across various govern- ment agencies remain underdeveloped. Important ICT capacities are emerging in some sectors, such as finance and health care. However, many other large Colom- bian industries, such as tourism, energy, and agriculture, are characterized by lim- ited use of the latest ICT tools. This market gap opens large potential opportunities for Colombian ICT suppliers. On-site observation of selected ICT clusters in Colombia indicates that the quality, export potential, and employment impact to date of such regional clusters is often highly variable. Factors inhibiting more rapid growth by clusters and their member companies include product port- folios aimed at relatively small domestic markets; a broad lack of adequate training around product design, development and management, and sales and marketing; and poor English-language skills. Many of these talent deficiencies are addressed by recommendations in the last section titled Environment: Talent & Institutions. Several important industry challenges warrant especially great attention in the Vive Digital 2 strategy. First, Vive Digi- tal should support ongoing initiatives to strengthen regional ICT clusters and also bolster connections between ICT and other leading regional industries, such as agri- culture, energy, or health care. Support for advances in education and justice is also needed. In particular, these strategies should encourage major investments in universities to improve their research capa- bilities and to build closer linkages to local ICT sectors. Second, Colombian ICT firms, especially SMEs, should be encouraged and supported in their efforts to utilize state- of-the-art ICT technologies and tools, and to invest in new innovative activities that utilize ICT or benefit from it. Finally, con- tinued and expanded efforts to support ICT-based entrepreneurship, such the Apps.co program, are needed. All of these initiatives are about eco- system design and development. Startups and technology companies of all types can thrive when they operate within effective local, regional, and national ecosystems. These ecosystems are built around cultures of collaboration, and serve as a network where entrepreneurs, researchers, and companies can do business and can access needed support and services, and where a culture of innovation and entrepreneurship is nurtured. ICTInColombia:Regional Perspectives n The 2013 strategic plan known as the Strategic Vision for Software and Associ- ated Services envisions the development of six regional clusters that link software and ICT to areas of regional competitive advantage. For example, in the Caribbean area, regional ICT strategies will target the logistics and transportation sector. Simi- lar targeted approaches are projected for Santander (mining and hydrocarbons); Antioquia (energy); and several other regions. Each region will seek to develop a regional strategic marketing and sales plan related to its sectors of specializa- tion. These regional action plans will all include a great many activities designed to improve regional innovation capacities and SOURCE:ICTMINISTRYOFCOLOMBIA;VIVEDIGITAL2INITIATIVE ICT & Industry U ET T The Digital Ecosystem as Envisioned in the Original 2010 Vive Digital Strategy DIGITAL ECO- SYSTEM Demand Supply Applications Users Services Infrastructure
    • MIT TECHNOLOGY REVIEW 45GOVERNMENT POLICY REPORT to improve marketing of regional assets. Each region will have flexibility to manage its strategy and to develop specific work plans and approaches. These regional strategies are all in early stages of development and are intended to drive regional ICT investments for the next three years. Their efforts should proceed forward and receive continued support from MinTIC, Colciencias, and other key national agencies. At the same time, these agencies should consider additional invest- ments in other strategic areas that will help position Colombian regions for success in other emerging ICT markets. Each regional strategy should include a major plank that develops a regional cen- ter of ICT innovation related to a targeted industry or to key local industries, along with additional investments to support new programs and efforts at key univer- sities. Many, but not all, of these regional plans call for the creation of regional think tanks to support R&D and to plot new directions in the target cluster area. The strategies for the Pacific, Santander, and Coffee regions all include this recommen- dation. Other regions should also adopt a similar approach. Similar regional strategies are fre- quently deployed by governments around the world. In the US state of Georgia, the state has funded six regional centers of innovation focused on the following sec- tors: aerospace and defense, agribusiness, energy, life sciences, logistics, and man- ufacturing. These centers are affiliated with specific universities and located near strong regional clusters. The services that Georgia provides include technology com- mercialization, contract R&D, marketing assistance, and workforce training. The US National Science Foundation also funds a diverse collection of research centers of excellence, most of them housed at univer- sities or community colleges. Some centers engage in pure research and focus on important topics such as complex networks, materials research, chemical innovation, or nanoscale engineering. Another set of research centers supports institutions that serve minorities, such as historically black colleges and universities. Finally, advanced technology education (ATE) centers are typically located at community colleges and emphasize cutting-edge training and talent development in STEM-related disciplines. Eight of the current 39 ATE centers focus on ICT-related training and technologies. Similar approaches have been used in both Jalisco, Mexico, and in Ireland, where regional research centers were established to support industry research and provide training for students and workers. In Bra- zil, Recife’s Porto Digital technology park has enjoyed great success in supporting ICT and creative economy startups. Porto Digital provides the services typical of any industrial park, but also includes several business incubators and a human-capital training program that provides qualified workers for local ICT firms. In addition to supporting these emerg- ing cluster strategies, MinTIC should consider additional investments to posi- tion Colombia as a regional center for new big data and cloud computing initiatives. According to the UN Conference on Trade and Development (UNCTAD), cloud- computing adoption in Latin America has remained relatively slow, especially when compared to the global leaders in Asia and the US.6 The digital rights package discussed earlier in this report would also contribute to generating extensive local demand for these large data centers. Suc- cess in this area will also require important new initiatives to train new workers and managers with specific expertise in areas related to these initiatives (see chapter on Talent development later in report). These sectors will require many specialized work- ers, such as data specialists, who are in great demand around the world. 6 Valeria Jordán, Hernán Galperin, and Wilson Peres (eds.), Broadband in Latin America: Beyond Connectivity United Nations Report, 2013, p. 289 www.cepal.org/cgi-bin/getProd.asp?xml=/ publicaciones/xml/7/51197/P51197.xml&xsl=/tpl-i/ p9f.xsl&base=/tpl/top-bottom.xsl ICT & Industry U U Core Recommendation The Challenge: Colombia must support stronger regional ICT ecosystems to support local ICT companies and to promote more effective use of ICT among other key regional industries. Proposed Solution: Invest in three new regional program streams: 1. Regional centers for innovation that focus on connections between ICT, anchor employers, and key regional industry clusters, 2. University entrepreneurship and innovation centers that strengthen university capacities to train future entrepreneurs, to commercialize technology, and to nurture regional innovation ecosystems, and 3. Proof-of-concept centers; a small number of centers focused exclusively on the commercialization of technology and R&D developed at universities. *
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW46 RegionalCentersforICT Innovation n These regional centers of ICT innovation would serve as regional hubs for building connections between universities and pri- vate industry leaders. Business partners would include new entrepreneurs, SMEs, and larger firms, with the participation of local anchor companies as a top priority. Ideally, the centers would be based near universities, but would be led by local com- munity and business leaders or by regional cluster organizations and their members. Each regional center for ICT innovation could tailor its approach to the needs of local target industries and clusters. In some cases, local firms may need support with key business development issues, such as new market identification; in others, out- side R&D may make the most sense. It is also likely that many of these initiatives will emphasize talent development. These new centers for ICT innovation build on Colombia’s existing centers- of-excellence program by including a cross-disciplinary focus. Instead of simply sponsoring research in a single industry, such as energy, agriculture, or ICT, these centers will examine the intersection of ICT and other clusters. A Colombian model can be found in the new Coffee Region Cen- ter for Bioinformatics and Computational Biology, which focuses on how compu- tational biology can contribute to better outcomes in the fields of agriculture and health. Similar cross-disciplinary cen- ters are also gaining traction in the US. For example, the California Institute for Quantitative Biosciences (QB3) funds projects that tackles pressing molecular biology challenges using tools and tech- niques pioneered in the fields of physics, chemistry, and computer science. Ohio’s National Additive Manufacturing Innova- tive Institute applies advances in additive manufacturing and 3-D printing to a great many other industries. University Entrepreneurshipand InnovationCenters n Notwithstanding ongoing efforts to improve the climate for ICT entrepre- neurship in Colombia, it should be noted that serious weaknesses in the ICT entre- preneurship ecosystem across the country remain in effect today, particularly around the area of ICT-oriented entrepreneur- ship education. While some progress has been made in recent years in strengthen- ing entrepreneurship education at univer- sities in Colombia, major systemic gaps in the following programmatic offerings and competencies still exist and should be addressed: • Persistent gaps in building strong prac- tice-oriented ICT entrepreneurship education programs and centers, staffed by faculty and adjunct professors with ICT industry experience, at both engi- neering and business schools • A countrywide deficit in ICT product and CREDIT:MITENTERPRISEFORUM,MARTINTRUSTCENTERFORMITENTREPRENEURSHIP&MANYOTHERMITCOLLEAGUES Regional Centers for ICT Innovation: Mission & Tasks What is the role of these new centers for ICT Innovation? • Support local networks of ICT startups and established companies. • Develop talent among entrepreneurs, managers, workers, and community leaders. • Build cross-disciplinary connections between research and industry. • Advocate for regional industries and address cross-cutting policy and research challenges. • Build stronger innovation and entrepreneurial ecosystems. ICT & Industry MIT’s Ecosystem By Entrepreneurial Stage Education Other Activities STAGE 1 Inspiration Invention Idea Generation STAGE 2 Technology Development/ Idea Refinement to Practice STAGE 3 Commercialization Planning STAGE 4 Development of Business Plan STAGE 5 Real Company Formation (e.g. first customer, team, network) STAGE 6 Early-Stage Growth STAGE 7 High Growth • Basis for Commercialization: 45 years of growing research & insight into the entrepreneurial process • Knowledge Base: Outstanding scientific and engineering research and pioneering of new fields • Underlying Foundation: 150 years of MIT’s “mens et manus” culture U T U
    • MIT TECHNOLOGY REVIEW 47GOVERNMENT POLICY REPORT services design, prototyping, and devel- opment programs at many engineering schools • A broad absence of student entrepre- neurship clubs at universities • Continued weakness in university tech- nology transfer offices and related intellectual-property management practices • Limited ICT knowledge and capability among faculty and staff in disciplines outside of computer science and other ICT-related fields. These systemic gaps provide a potential opportunity for MinTIC to play a new and positive role in strengthening the ICT entre- preneurship and innovation ecosystem around universities, through, for example, the provision of financial and in-kind sup- port to university ICT entrepreneurship and design programs in consultation with the Ministry of Education. In an effort to address these challenge areas, a second set of investments should help universities build up their capacities to nurture regional innovation ecosystem by building stronger university entrepre- neurship and innovation centers. These investments should be tailored to unique regional circumstances and university focus areas, but they could include actions like those that follow: • Build out tech transfer offices, staff, and programs, and train technology transfer office staff and leadership • Develop entrepreneurship centers for ICT-focused curriculum development and faculty and staff training • Encourage student-driven entrepreneur- ship clubs at universities and secondary schools • Build out ICT-focused product/services design-teaching programs as a part of strengthening entrepreneurship centers • Fund mentor networks and train- ing, prizes for business accelerator competitions. These innovation and entrepreneurship centers can serve a variety of functions but must place great emphasis on fostering closer connections between academia and the private sector. Ideally, these centers should not be seen as the primary drivers of a regional ICT cluster strategy. Their primary role should be to help strengthen regional university capabilities to serve as effective partners to the emerging cluster firms and support networks. Proof-of-Concept Centers n A final set of investments would focus on the role of universities as drivers of new ideas and new R&D. For some time, MinTIC has sought to use existing funds to support direct research at various univer- sities across Colombia. These past invest- ments have produced mixed results, and key personnel at MinTIC have expressed frustration with the pace of these efforts. In an effort to spur new think- ing and new directions in ICT research, MinTIC should consider embracing the development of a small group of ICT proof- of- concept centers at key locations across the country. These centers could be affili- ated with universities, but would be jointly managed and supported by local ICT com- panies, university researchers, and other MinTIC partners. This model is based on new models for proof-of-concept centers now emerging in the US, UK, and elsewhere.7 These cen- ters have recently emerged as a response 7 Christine Gulbranson and David Audretsch, Proof of Concept Centers: Accelerating the Commercialization of University Innovations, Kauffman Foundation Research Paper, 2008. sites.kauffman.org/pdf/POC_ Centers_01242008.pdf to growing frustration with the limited suc- cess of traditional university technology transfer and commercialization programs. Typically, these programs rely on univer- sity researchers to develop new concepts and technologies, and then take the lead in turning them into business ideas. Proof- of-concept centers take a more hands-on approach, and link research ideas to entre- preneurial mentors and coaches, seed funding, and other support tools. They are designed to address common challenges such as the limited entrepreneurial skills and orientation often found among uni- versity faculty and their limited access to key networks needed for business success. MIT’s Deshpande Center is one of the best-known proof-of-concept centers in the US. It has supported and funded more than 90 projects and helped to improve MIT’s already impressive technology com- mercialization record. More than 32 US universities now operate their own proof- of-concept centers. The UK government has embraced this model with its national network of catapult centers which focus on key industries of the future. The Connected Digital Economy Catapult focuses on fostering innova- tions in three key areas: creative media and content, digital health, and digital cit- ies. Similar programs exist across Europe; SOURCE:MITDESHPANDECENTEROFTECHNOLOGICALINNOVATION ICT & Industry U The Deshpande center empowers some of MIT’s most talented researchers to make a difference in the world by developing innovative technologies in the lab and bringing them to the marketplace.
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW48 efforts like Finland’s VTT Technical Research Centers, France’s Carnot Institute network, and Germany’s Fraunhofer Cen- ters all include proof-of-concept services among their innovation policy offerings.8 ICTandInnovationin thePrivateSector:R&D atStartups,SMEs,and LargeCompanies n Under the new national development plans, Colombia has recently supported a major upgrading of its R&D investments. Since the late 2000s, funding for science and technology activities at key agencies like MinTIC, SENA, and Colciencias has rapidly increased. In addition, new efforts to spur further R&D activities at univer- sities and in the private sector are under way. But these promising initiatives are primarily serving to narrow longstand- ing gaps in science and technology per- formance. Like many Latin American economies, Colombia underperforms oth- ers in terms of investments in science and technology in all sectors, including ICT. Across Latin America, R&D expenditures account for only 0.62 percent of GDP, and investment levels in Colombia fall far below that benchmark at roughly 0.2 percent of GDP. 9 The vast majority of this invest- ment (roughly 75 percent) is generated from public sources, and nearly all research personnel are based in universities and government agencies. Country-level innovation surveys also indicate that Colombian businesses make very little investment in R&D. Among firms in Latin America, overall private direct expenditures account for less than 1 percent of sales.10 In Colombia, nearly 70 percent of all private innovation investment is devoted to the purchase of machinery and equipment.11 If this investment is not accompanied by related 8 For background, see http://www. biginnovationcentre.com/Assets/Docs/Catapult%20 to%20Success%20report%20final.pdf 9 Inter-American Development Bank, The Imperative of Innovation: Creating Prosperity in Latin America and the Caribbean, IADB Report 2011, pp. 11-12. IDB, The Imperative of Innovation: Creating Prosperity in Latin America and the Caribbean 10 Elaina Arias Ortiz et al, “Innovation for Economic Performance: The Case of Latin American Firms,” UNU-MERIT White Paper 2013-028, May 2013, pp. 9-10. 11 Ibid, pp. 18-19. investments in R&D and talent devel- opment, firms may lack the capacity to use this equipment as a driver of further innovations. The World Bank’s Enterprise Surveys regularly assess the innovation-focused activities of firms in Colombia and across Latin America.12 These studies find firms engaged in innovation-related activities, such as new R&D investments, significantly more productive than firms eschewing such activities. In fact, the gap between these two categories of firms is much higher in Latin America than in other developed economies. In Latin America, the typical national productivity gap is 70 percent; for European nations, this gap is 20 per- cent.13 Thus, the local benefits of investing in innovation are especially significant in Colombia. These enterprise surveys also depict the shared characteristics of innovat- ing firms. Overall, about a third of local manufacturing firms are considered to be innovators; that is, they have introduced a new product or process innovation in the past year.14 Service-focused firms are even more likely to support innovation, with 47 percent having introduced a technologi- cal or non technological innovation.15 This research yields several interesting findings.16 It shows that service firms are most likely to invest in innovation-related activities. These investments typically take the form of new ICT purchases as opposed to funding for R&D. “Innovation-friendly firms” in all sectors were more likely to have linkages with outside partners such as other firms, universities, or foreign part- ners. These companies, especially those in the service sector, are also more likely to make use of government support programs, both as sources of finance and as sources of information on markets and other indus- try trends. Not surprisingly, firms with a higher proportion of highly educated workers (with college and/or technical 12 For a recent summary, see Ortiz et al. Because comprehensive data on enterprise-level ICT investments does not exist, we are unable to provide extensive details on enterprise-level ICT activities. The innovation surveys used in this research include a variety of “innovation” activities which include ICT investments along with our efforts as well. 13 Ibid, p. 2. 14 Ibid, p. 8. 15 Ibid, p. 23. 16 For discussion, see ibid, p. 26. degrees) were more innovation friendly. Finally, these firms, especially those mak- ing direct R&D investments, tend to be larger and older than their industry coun- terparts. Because R&D spending generates slower returns on investment, firms must be certain of their long-term survival before making sizable investments in this activity. Firm surveys also assessed key obsta- cles to innovation. Survey respondents emphasized risk as the primary impedi- ment; innovation-related investments were viewed as highly risky.17 In addition, firm managers pointed to limited financial resources and limited human capital fac- tors as other large-scale obstacles. These findings suggest the need for a continued focus on supporting public innovation investments and continued support for tal- ent development initiatives. (See Section 4 for a discussion of ICT talent-development issues). Firms typically pointed to internal, firm-specific challenges as the most press- ing obstacles; external challenges, such as poor links to other firms or concerns about intellectual-property protection, were not perceived as the most pressing challenge areas. These results suggest that, even with recent progress and improvements, Colom- bian industry still suffers from a pattern of underinvestment in key technology areas by both public and private sources. Moreover, the benefits of reversing these patterns are significant, not only for indi- vidual companies and their employees, but for the local economies as well. Supply–and–demand driven strate- gies will be needed to improve the rate of innovation investments by all players in Colombia’s ICT innovation ecosystem. New investment tools for R&D, particularly for the private sector, are needed to generate new homegrown ideas and innovations. In addition, government agencies should use their own purchasing power and procure- ment policies as a tool to help stimulate new ICT developments by Colombian firms and entrepreneurs. As noted above, the availability of financial incentives matters for innovation by Colombian businesses. Firms that tap into public financing and support are more 17 Ibid, p. 55. See also, Juan Miguel Gallego, Hernando Gutierrez, and Rodrigo Taborda, Innovation and Productivity in the Colombian Service Industry, IDB Discussion Paper IDB-DP-287, June 2013 ICT & Industry S D S D
    • MIT TECHNOLOGY REVIEW 49GOVERNMENT POLICY REPORT likely to invest in innovation. Thus, cur- rent programs must continue and, where possible, be tailored to further stimulate ICT-related R&D spending. Colombia presently offers a fairly generous set of tax incentives to spur new investments,18 and the continuation of these programs makes sense. However, much evidence suggests that these incentives are most likely to generate new investments from larger and more established firms. 19 As recent World Bank research suggests, smaller and newer firms, often the most innovative ICT play- ers, are more likely to benefit from direct financial support, because their limited revenue base may restrict their capacity to benefit from large tax incentives.20 These findings suggest that the develop- ment of new grant programs will be more effective in pushing R&D subsidies to private companies. Present rules include requirements that may limit the ability of private firms to apply for R&D backing. This may be especially true for SMEs that lack extensive resources and the ability to manage effective partnerships with univer- sities or larger employers. There is no one best way to provide incentives for SME innovation invest- ments. Three potential options exist. Funding could be provided via traditional grant programs, such as a MinTIC Innova- tion Fund, similar to many such initiatives 18 KPMG, R&D Incentives and Services- Adding Value Across the Americas, 2012 Edition. Available at: www.kpmg.com/CH/en/Library/ Articles-Publications/Documents/Tax/pub- 20130722-americas-en.pdf 19 Gallego et al, p. 51. 20 Paulo Correa, Luis Andres, and Christian Borja- Vega, The Impact of Government Support on Firm R&D Investment: A Meta-Analysis, World Bank Policy Research Working Paper #6532, 2013. Core Recommendation The Challenge: Colombian SMEs underinvest in innovation-related activities, especially those related to ICT. Proposed Solution: Support ICT-focused innovation investments at SMEs. This fund could be structured in several ways—as a traditional grant program, a challenge- prize competition, or an innovation voucher program, where firms use publicly backed vouchers to purchase services or tools on the open market. * already underway in Colombia. The use of challenge-prize programs could also be considered. Finally, MinTIC could con- sider sponsoring an innovation-voucher program where ICT startups use vouchers to buy the services they need on the open market. A MinTIC Innovation Fund would be the most direct means of supporting R&D and innovation investments at SMEs. This MinTIC Innovation Fund could be structured in several ways. It could simply operate as a grant program, with a call for proposals in a wide array of areas related to ICT innovation, or it could focus on specific topic areas, such as telehealth or distance learning, or in specific industry subsectors. In these cases, the fund might operate via a challenge-prize model, where firms com- pete to be selected as a national or regional prize champion. The MassChallenge program offers one model for these types of competitions. While based in Massachusetts, MassChal- lenge is open to firms from around the world. (Colombia’s iNNpulsa is a partner in this effort.) It sponsors a global busi- ness competition, with winners provided with financing, coaching and mentoring, and a whole range of other support tools. The Lemelson-MIT Prize, which awards $500,000 every year to a winning inven- tor, is another successful and long-running challenge-prize competition. Innovation funds are relatively com- mon in the US and elsewhere. Many states and localities operate small grant pools focused on innovation. For example, the Northeast Ohio Innovation Fund awards grants of up to $100 thousand to new tech- nology firms in the region. In Maine, the Maine Technology Institute offers mini- grants (up to $25,000) to firms pioneering new technologies in the state’s seven target- industry clusters (of which ICT is one). Funding efforts like these are also very commonly deployed in Great Britain. Nesta (the former National Endowment for Sci- ence, Technology, and the Arts) has recently opened an interesting new fund, the Digital Makers Fund, which provides small grants to young people who are employing digital technologies to make things. This effort is designed to spur interest in new areas like 3-D printing and physical computing, as well as more traditional ICT skills like cod- ing and programming. The use of innovation vouchers is another potential tool to stimulate private innovation investments. Innovation vouch- ers operate via a fairly simple process. A small business receives a voucher, gener- ally backed with public funds, which it can cash in with preapproved consultants or ICT & Industry S D D The MassChallenge Lounge: A community of entrepreneurs & experts keeps the office humming with activity. Launching a startup can be lonely, but this engaged community is overflowing with inspiration and support. PHOTOCOURTESYOFANALOGUESTUDIO The MassChallenge Program Since 2010 this program has created: 489startups $470 million in funding raised $190 million in revenue generated 3,900jobs
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW50 research centers who help the firm address a pressing technical or business issue. The process for receiving vouchers is fairly sim- ple (a business must file a short application that describes its intended activities), and each voucher has a relatively low value (often below $10 thousand). In cases where larger dollar amounts are disbursed, some form of matching investment is often required. Innovation voucher programs have become hugely popular in Europe, where there are at least 25 different programs underway. The concept was first tested in 2000 in the Netherlands and has now spread throughout the continent. More recently, many other governments, includ- ing Singapore, Taiwan, and Canada’s Alberta Province, have announced their own voucher programs. Voucher funds can typically be used for a wide variety of activities, including research and development, product devel- opment, management consulting, and training. This flexibility of use is a real added benefit of the system, as the vouchers allow businesses to obtain support services specifically tailored to their most pressing needs. Early evaluations of these projects are quite positive.21   The voucher programs are quite popular, but, even more impor- tant, they are generating bottom-line benefits—in the form of new business and new jobs—for business customers. The pro- grams also seem to generate a host of other spinoff benefits, such as: • Programs are more flexible, allowing firms to tackle a host of different issues and problems. • The use of vouchers helps create a stron- ger base of local consultants and business service providers. • The vouchers encourage firms to get more involved in local business-support networks. • The system can operate with limited funds and administrative capacity. This positive early experience with innovation vouchers in Europe has reached a point where the use of vouchers is now considered a regular “best practice” for 21 For a summary, see www.technopolis-group.com/ resources/downloads/Innovation_Voucher_for_ OECD.pdf business support within the EU, because they offer a tool to provide a wide range of support services at a relatively low cost. Government Procurementasa DemandStimulus n Providing support for R&D is one way to stimulate innovation investments at SMEs: public sector agencies can also stimulate innovation by providing government con- tracting opportunities for them. 22 Many nations deploy such demand-side innova- tion policies by providing special contract- ing preferences to local SMEs. In the US, small businesses benefit from small busi- ness set-asides but can also take advantage of the Small Business Innovation Research (SBIR) program, which requires that all Federal agencies spend a minimum of 2 percent of their total R&D budgets on projects with small businesses. Australia’s SME Market Validation Program oper- ates in a similar fashion. In Korea, the New Technology Purchasing Assurance Program provides purchasing preferences to small technology firms and even pro- vides immunity for losses and performance insurance to participating companies. Many potential options for demand- driven innovation policies could be utilized.23 These include the following: 1. Extend government contracting preference to local suppliers: Provide preferential contract rules or require certain percentages of local content in government technology purchase contracts. 2. Require local partnerships on government contracts: Require large firms or multinationals to include local SME partners in the bidding for government technology contracts. 3. Expand public sector outreach to SMEs: Proactively promote and advertise upcoming public contracts and purchases to local SMEs. 22 OECD, Demand-Side Innovation Policies, Paris: OECD, May 2011. 23 For more background, see OECD, 2011; and Veiko Lember, Rainer Kattell, and Tarmo Kalvet, “How Governments Support Innovation through Public Procurement,” Tallinn University of Technology Working Paper, August 2013. ICTandEntrepreneurship n Efforts to support the ICT industry should be closely aligned with ongoing national and regional initiatives to spur entrepre- neurship. MinTIC has enjoyed considerable success with its Apps.Co program, and in 2012, Colombia unveiled a national entre- preneurship initiative, iNNpulsa. iNNpulsa greatly strengthens the policy environment for start-up ventures, and includes two pri- mary components. Via iNNpulsa Empren- dimiento Dinamico Innovador (Innovative Dynamic Entrepreneurship), up-and-com- ing entrepreneurs can receive technical assistance and coaching on developing a business plan and accessing venture capi- tal. Emprendimiento e Innovacion en las Grandes Empresas (Entrepreneurship and Innovation in Large Enterprises) targets large firms and encourages them to support spin-off ventures and ”in-trepreneurship,” i.e. entrepreneurial ventures that reside within large corporate structures. These national efforts are supplemented with regional strategies and programs. At present, Colombia’s entrepreneur- ship and start-up strategies are built on three primary sets of activities. First, financing programs, such as the SENA Enterprise Fund, which invests in start- ups by students and recent graduates, provide seed capital to new ventures. Other programs, like Bancodex, are intended to provide later-stage finance. Second, various forms of technical assistance are provided. These can occur via the new iNNpulsa programs or via local or regional networks, such as local chambers of commerce. In addition, many business incubators focus on providing support to ICT-related businesses. Many regions in Colombia are pursuing very sophisticated and promising entrepreneurial develop- ment efforts. such as the Manizales Mas initiative. Finally, extensive efforts to improve the regulatory climate for entrepreneurs are underway. Colombia is a global leader on this front. According to a recent World Bank study, “Colombia is the Latin Ameri- can country that has done the best job of narrowing the gap in its efforts to attain the most efficient regulations.” 24 24 See www.doingbusiness.org/~/media/GIAWB/ Doing%20Business/Documents/Subnational- Reports/DB13-Colombia-Overview.pdf ICT & Industry D D D D D
    • MIT TECHNOLOGY REVIEW 51GOVERNMENT POLICY REPORT In a general way, this broad set of strat- egies aligns well with leading practices from around the globe. While the programs are new and some are not robustly funded, their basic design and outlines make sense. ICTStart-UpandSME Training,Coaching,and Mentoring n Many excellent but isolated business training initiatives are underway in Colom- bia. MinTIC’s own Apps.co is among the most promising of them. Modeled on well- known US-based accelerator programs like Y Combinator and Tech Stars, Apps.co pro- vides coaching and other support for key early phases of the business development process such as ideation, market valida- tion, and business model development. The program operates in numerous regions of the country, and targets firms serving many different markets, such as agricul- ture, health care, mining, among others. In all case, the targeted entrepreneurs are seeking to use ICT tools and services to address pressing business challenges. Like most accelerator programs, Apps. co employs a rigorous screening process. Thousands of people participate in boot camps and other training sessions, but only a small handful (26) have been approved for the full and final phases of the pro- gram. This process is designed to prepare participants for the rigors and challenges associated with growing a business. Continued investment in Apps.co makes sense, as does the program’s basic model and structure. At present, Apps.co initiatives have focused heavily on some of the earlier stages of business development, what many refer to as the incubation phase. As the program moves from incubation to a heavier focus on business acceleration, new tools that help businesses grow and succeed in new markets should be added to the Apps.co tool kit. Future program initia- tives should add a new focus on providing higher-level mentors and coaches to pro- gram participants and identifying other approaches to expanding the program’s reach. These efforts might include provid- ing additional specialized programming for those who are not approved for the full Apps.co support program, and development of programming designed for less technol- ogy-savvy regions and entrepreneurs. Supporting Recommendation The Challenge: Colombia’s ICT startups need strong coaches and mentors to advise them on how to build their companies, yet they face a shortage of executives with relevant experience and expertise. Proposed Solution: Create a MinTIC entrepreneur-in-residence program that provides training and support to entrepreneurial coaches and mentors and connects them to local startups. * To provide more specialized coaching and mentoring, MinTIC might consider developing its own entrepreneur-in-resi- dence (EIR) program. This effort, modeled on programs that exist at many universi- ties (including MIT) and in many US cities and states, recruits successful and estab- lished entrepreneurs to coach and advise new companies on key business develop- ment challenges. This cohort of EIRs could be based in Colombia, but it could also include entrepreneurs and executives from the Colombian diaspora population in the US and elsewhere. This latter strategy would offer an excellent venue to engage emi- grant Colombians in helping to build up a stronger local ICT sector. The US-based International Diaspora Alliance, launched by then-Secretary of State Hillary Clinton in 2011, is one of several organizations now focused on supporting strategies of this kind in Latin America and elsewhere. A number of such science- and technology- focused networks are now operating. These include the Wild Geese Network (Ireland), the Society for the Advancement of Science and Technology in the Arab World, and the Caribbean Diaspora for Science, Technol- ogy and Innovation. Finally, MinTIC should consider the development of its own ICT Leadership training programs. On its own, or in part- nership with universities or other providers, MinTIC could sponsor executive educa- tion training programs or workshops that cover a host of ICT-related management and development topics. Technical training could cover areas such as programming, big data, or social media, while executive train- ing would emphasize the challenging issues facing C-level executives in ICT-related sectors. These training programs could be core offerings of the MinTIC Academy, pro- posed earlier in this report. ICTStart-UpandSME BusinessFinance n Extensive research suggests that Colom- bian SMEs are generally able to access credit when seeking outside funds for ongo- ing needs like working capital.25 Funds for longer-term investment are somewhat less available. Generally, SMEs can access debt capital to finance their daily operations. In contrast, Colombia’s supply of risk or equity capital, such as angel or ven- ture capital funds, is highly constrained. As a recent OECD study noted, “the ven- ture capital and angel investor industries are not in line with the size of Colombia’s economy.”26 According to 2011 data from Colombia’s Bank of Foreign Trade, Bancó- dex, Colombia presently accounts for only one percent of all venture capital funds raised in Latin America.27 Thirty-two funds now operate in Colombia, but the vast majority of investments are focused on buyout activity. Early stage investment funding remains quite limited. Efforts to address these financing shortfalls are under way and should con- tinue. New funds are emerging on a regular basis and support for these efforts should continue. These formal VC funds should be further supplemented with efforts to pro- mote crowdfunding sites (see focus area 1 on poverty alleviation) and to create new angel networks in Colombia. This effort requires active engagement, in encouraging wealthy individuals to become angel inves- tors and supporting the creation of new angel networks. MinTIC should consider sponsoring or financing angel-investor workshops or similar programs, like the beverage company Bavaria S.A.’s Investing Angels program. Supporting these outreach efforts like these is a primary function of angel capital associations, in the US and Europe and around the world MinTIC might even consider sponsoring an affili- 25 Marcela Meléndez and Guillermo Perry, Industrial Policies in Colombia, IDB Working Paper #IDB-WP-126, June 2010, p. 66. www.iadb.org/intal/ intalcdi/PE/2010/05584.pdf 26 OECD, Start-Up Latin America, Paris, OECD, 2013, p. 169. 27 Bancoldex Briefing, Overview of the Private Equity and Venture Capital Industry in Colombia, February 2013. Available at: www.cimarroncapital.com/ccp/ web.nsf/ilpa2013-colombia-1SARTORI.pdf ICT & Industry T ET T
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW52 ated angel network to invest in ICT-related firms and startups. This approach might operate in a manner similar to Chile’s pro- duction development corporation CORFO. Since 2007, CORFO has invested in the startup of regional angel networks and has also helped to manage the operations of these groups. CORFO funds can be used to support up to 70 percent of the start- up costs of an angel network. Today, five angel networks operate across Chile and have provided $15 million in new invest- ment to 40 firms.28 New investment talent is needed and can be nurtured via continued support for the industry’s professional development. 28 OECD, Start-Up Latin America, pp. 153-157. Supporting Recommendation The Challenge: Colombia’s supply of risk or equity capital, especially early stage investment funds, is highly constrained. Proposed Solution: As many new funds are being introduced by other key players in Colombia, MinTIC could support professional development programs that help train venture and angel investors and create a new homegrown pool of talent in the industry. * The creation of ColCapital, the nation’s first venture capital association, is a positive development. Additional efforts to pro- mote professional development within the industry should be supported by MinTIC and other government agencies. MinTIC Academy could serve as a platform for some of these activities. The US-based Kauffman Fellows Program may offer opportunities on this front. Kauffman fellows, who can be based in the US or overseas, participate in a two-year program designed to nurture new generations of leaders in the venture capital industry. This program, originally spon- sored by the Kauffman Foundation, and since expanded with the help of the industry and universities, has proved highly effective in grooming a new and more diverse set of industry leaders. MinTIC might consider sponsoring Colombia-based Kauffman Fel- lows or introducing some version of the program at home. As demand for equity investments grows and a stronger base of ICT entrepreneurs emerges, MinTIC may consider development of specialized risk capital funds or co-investment in other equity funds. However, efforts to support professional development should be pur- sued as first steps before considering these additional measures. MetricsandPerformance Impacts n The programs and investments described in this section relate primarily to the growth and expansion of private sector businesses and potential performance mea- sures should reflect this fact. Specific pro- grams will have unique metrics relevant to their specific activities and purposes. For example, an entrepreneur-in-residence program should track the number of entre- preneurs “touched” by the program as well as those who formally participate in the network. Financing programs should track the number of firms who receive financing as well as changes in the amount of capital under management. Collectively, the MinTIC programs that focus on the ICT Industry components of the MinTIC framework should consider use of the following metrics to track pro- gram impact and effectiveness: • Growth in the number of ICT-related firms • Increases in revenue for ICT-related firms • Increases in employment in ICT-related firms • Improved export performance by ICT- related firms • Relative performance of ICT-related firms in comparison to other industry sectors • Increased investment in innovation activ- ities by ICT-related firms • Increased investments in ICT-related innovation by universities • Increased investments in ICT firms by public sector agencies, banks, and pri- vate investors • Increased use of MinTIC programs by ICT-related firms • Customer satisfaction levels with key programs • Increased private participation in regional ICT cluster initiatives Where possible, these measures should be tracked at the local, regional, and national levels. Collectively, they will help MinTIC tell the story of the contin- ued growth and evolution of Colombia’s ICT industry. ICT & Industry Emerging ICT Sectors: Growth Opportunities for Colombia The global ICT industry seems to change direction on a monthly, if not daily, basis. However, most analysts are bullish on the industry’s midterm growth prospects in Colombia and throughout Latin America. Leading market analysts and consulting firms, such as Gartner, KPMG, IDC, McKinsey, and others, point to the following sectors as those with particularly good prospects for growth over the short and medium term. These sectors all involve four key issues or competencies: cloud computing and storage, mobile computing, security, and big data. n Cloud computing (applications, infrastructure and platforms) n Mobile cloud computing n Big data and data centers n Smart grid and related devices n Bring Your Own Technology (BYOT)/Bring Your Own Device and related sectors (e.g. apps, mobile endpoint security) n Managed Security services. In addition to these direct ICT sectors, a great many other sectors will be disrupted, enabled,ortransformedbytheongoingrevolutionsinICT. Theseincludesectorssuchas: n Online education and e-learning n E-health and electronic health records n Mobile banking and finance n Mobile advertising n E-government services.
    • Environment: Talent& Institutions IN THIS SECTION Overview ICT Talent in Society ICT Skills for Industry ICT Competencies at Colombia’s Universities ICT Talent for Government ICT Leadership via a “Seat at the Table” MinTIC Think Tank / Lab New MinTIC Programs Serving Business, Industry and Government Directly Strengthening the Academia-Government- Industry Link Metrics and Performance Impacts Framework Area 4 of the Vive Digital 2 strategy includes two major compo- nents: talent and institutions. The dearth of ICT talent, ranging from entry-level programmers to engineers and techni- cians to skilled managers and ICT-savvy leaders, in the private, nonprofit, and public sectors has been identified as a barrier to achieving a digital culture and maximizing the opportunities ICT presents for overall economic competi- tiveness. MinTIC has organized its efforts to improve the quantity and quality of ICT technical skills and competencies around three categories: society at large, ICT pro- fessionals (industry and universities), and policy makers. “Institutions” include national, regional, and local government organizations, universities, plus the aca- demia-government-industry link that will enable successful implementation of the Vive Digital 2 programs. Achieving the vast ambition of the Vive Digital 2 plan for the use of ICT to support Colombia’s socioeconomic development will require partnerships and capacity building with public and private-sector entities throughout the country. Talent and institutions are foundations for the three other framework areas of poverty alleviation and social development, competitiveness, and ICT industry growth. STUARTBRADFORD
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW54 Environment: Talent & Institutions Core Recommendations 1. Scale MinTIC’s ICT talent initiatives to a massive level through a MinTIC-approved digital badging program that will be accessible to all Colombians—not just ICT professionals— and aimed at developing basic and advanced ICT technical skills, using the proposed MinTIC Academy as the main platform. 2. Create a program that can provide customized training to firms with demonstrated demand for workers who need ICT technical skills, working in partnership with the National Apprenticeship Service (SENA), the Colombian Institute of Educational Credit and Technical Studies (ICETEX), universities, or other qualified training providers. 3. Increase understanding of ICT policy issues among elected officials at all government levels by offering nontechnical, big-picture events addressing ICT topics, built around popular speakers, private-sector leaders, networking, and social activities. 4. Create and convene groups of government and private-sector CIOs for education, leadership, and program management training to improve their ability to implement ICT solutions at the regional and municipal levels. Supporting Recommendations 1. Partner with Colombia’s National Education Ministry (MEN) to develop teacher- and counselor-training programs on technology basics and create classroom materials incorporating ICT tools into lesson plans. Involve ICT companies via Apps.co to create education apps for the classroom. 2. Collect, share, and promote data on actual salaries and job openings for jobs requiring ICT skills; create “career models” through peer examples, case studies and success profiles to personify ICT-related career opportunities. 3. Continue the third-party ICT certification program for university students and professionals, created in partnership with ICETEX; monitor and promote outcomes to encourage future participation and program expansion. 4. Establish a MinTIC fellows program to recognize the best ICT graduates from Colombian universities and develop them as leaders by offering them one- or two-year fellowships with MinTIC to help implement the Vive Digital 2 program. 5. Develop an ICT for Government curriculum with one of Colombia’s universities, possibly in partnership with a non-Colombian university with expertise in this area. This recommendation should be coordinated with the proposed digital badging initiative and the regional centers for ICT innovation for e-government under Framework 2. 6. Establish ICT-focused product design/services research and teaching centers at Colombia’s universities, connected to the proposed regional centers for ICT innovation. T T ET T D T T T T U * *
    • MIT TECHNOLOGY REVIEW 55GOVERNMENT POLICY REPORT Talent n “Talent” is one of the main enablers of economic growth and development.1 Tal- ent can mean anything from overall human capital (often measured in terms of educa- tion levels in a given economy) to availabil- ity of workers who have specialized skills.2 This section focuses on the availability of individuals in Colombia possessing high- quality ICT skills that can be deployed in government and industry, but it also addresses ICT skills in the general popula- tion. ICT technical skills (such as program- ming and computer engineering) and ICT competencies (technical skills plus “soft” skills in areas such as design and manage- ment) are both addressed. It is important to point out that ICT technical skills are necessary but not sufficient to achieve socioeconomic development goals.3 Additional ICT com- petencies that must be present to leverage the opportunities for economic develop- ment include leadership, management, entrepreneurship, research, innovation, design, and broader science and math skill sets. 4 Nor are ICT technical skills merely about writing code. ICT talent initiatives should also address systems architecture and product design, for example, as well as management and entrepreneurship for the ICT industry. ICT talent initiatives also need to take into account the skill levels of non-ICT 1 Paul M. Romer,“Increasing Returns and Long-Run Growth,” Journal of Political Economy, October, 1986; Edward L. Glaeser, “Are Cities Dying?”, Journal of Economic Perspectives, Spring 1998, pp.139-160. Edward L. Glaeser, “The New Economics of Urban and Regional Growth,” in Gordon L. Clark et al, The Oxford Handbook of Economic Geography. Oxford University Press, 2000, pp. 83-98.. 2 Robert E. Lucas, Jr. “On the Mechanics of Economic Development,” Journal of Monetary Economics. 22: pp. 3-42.1988; Julio Rotemberg and Garth Saloner, Competition and Human Capital Accumulation: A Theory of Interregional Specialization and Trade, NBER Working Paper No. 3228, 1990; Michael E. Porter, On Competition, Boston, MA, Harvard Business School Publishing. 1998; Curtis J. Simon and Clarke Nardinelli, “Human Capital and the Rise of American Cities,” Regional Science and Urban Economics, Jan. 2002. 3 Dan Breznitz, as quoted in the MIT Trends report for MinTIC, 2014. 4 Beñat Bilbao-Osorio, Soumitra Dutta, and Bruno Lanvin, eds., The Global Information Technology Report 2013. Growth and Jobs in a Hyperconnected World, INSEAD and World Economic Forum,2013; UNCTAD, Information Economy Report 2013, The Cloud Economy and Developing Countries; unctad. org/en/PublicationsLibrary/ier2013_en.pdf ; Erik Brynjolfsson and Andrew McAfee, Race Against the Machine. Lexington, MA, 2011. professionals. If MinTIC programs are to generate substantial economic impact, they must connect to the nation’s leading economic sectors beyond the narrow ICT industry itself. For example, more and bet- ter ICT classes may be developed for use in engineering and business programs at universities. Colombia’s strategic industry sectors must have access to a workforce with both ICT technical skills and broader ICT competencies. Policies that help Colombians throughout society make bet- ter use of ICT must also be considered. Such efforts will require strong partners across academia, government, and industry. ICTTalentinSociety As documented earlier in this report, MinTIC and Colombia have expanded ICT access and use substantially under the Vive Digital initiative. Through Vive Digital 2, MinTIC can build on the accomplish- ments of programs such as Computers for Education, household subsidies for Inter- net and computer purchases, efforts to connect businesses to the Internet, and establishment of community centers and kiosks to enhance ICT technical skills in the population. Digital Badges: ICT technical skill development at a massive level Digital badges are “web-enabled creden- tials” that “can contain specific claims about accomplishments, along with detailed evi- dence in support of those claims.”5 They can convey either academic knowledge or other types of competencies that cannot be measured by traditional assessments.6 A digital badge typically signifies comple- tion of a project or mastery of a skill, or may serve as a mark of experience; therefore, digital badges are an appropriate tool for ICT technical skill development for a gen- eral population. Digital badges have the following advantages7 for talent development on a massive scale. They: • Enable individuals to learn in many dif- ferent places, times, and ways—not only in a formal education setting • Offer credentials that recognize and vali- date this type of learning • Create a pathway for learners that does not require a teacher or professor to direct them; each individual can move on to the next level or to other content when ready 5 remediatingassessment.blogspot.com/2013/10/ what-do-you-mean-by-badges.html#more 6 www.macfound.org/programs/digital-badges/ 7 Conversation with Mark Surman, Mozilla Foundation, January 2014. Environment: Talent & Institutions MinTIC Talent Strategy The recently released MinTIC talent strategy1 focuses on improving ICT technical skills through the following four elements of its action plan: 1. Marketing—promoting ICT-related career studies through a variety of popularization and outreach strategies for different demographic groups 2. Monitoring— identifying and tracking indicators of ICT industry talent development 3. Quantity and Quality—The primary program is the agreement between MinTIC and ICETEX to provide ICT training and certification, but also includes regional agreements for certification and efforts to promote the employability of trained individuals. 4. Supply and Demand—includes identifying industry needs, identifying gaps between needs and education/training programs, and improving the quality of university ICT programs, primarily via partnerships with MEN. SENA is also developing programs for technicians, which will help create a stronger base at the bottom of the pyramid. 1 Direccion de Politicas y Desarrollo de T.I., MinTIC, October 28 2013 version. S D
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW56 • Are available to anyone, any time—not just to students in a classroom • Suit ICT technical skill development well but can also be adapted to address broader ICT competencies • Can address all skill levels, from basic to advanced • Promote lifelong learning. Digital badging programs have been implemented in primary and secondary schools, at universities, and among govern- ment and private-sector employers. They are suitable to MinTIC’s vision of scaling its ICT talent initiatives up to reach the broadest possible audience across Colom- bian society. To be valuable, badges must be vali- dated and accepted by others. If there is a strong learning ecosystem behind the badges, they can become powerful and con- nected credentials. This learning ecosystem includes badge issuers, who must create a set of competencies and assessments to determine if the learner has acquired the skills for the badge, and badge consumers (such as potential employers) who need the skills represented by the badge and accept the badge as a representation of those skills.8 MinTIC could play the role of badge issuer, ensuring that badges hew to “accepted education standards, compe- tency frameworks for specific fields or communities of practice, or standards that emerge from an institution of higher education, a business, or a community of practice.” MinTIC may take on this role directly, creating the standards and content itself, or play an indirect role, building a platform for the badges, but engaging and overseeing others to provide the content. MinTIC should also promote the creden- tials to potential badge consumers (such as private-sector employers) and guaran- tee the value of the credential through an oversight role. Digital badging would complement the initiatives recommended to improve access to education and ICT learning opportu- nities, improve the quality of education, and introduce new ICT-related tools and technologies to education as Framework 1 8 Alliance for Excellent Education and Mozilla, Expanding Education and Workforce Opportunities through Digital Badges, August 2013. all4ed.org/ wp-content/uploads/2013/09/DigitalBadges.pdf describes. It provides another mechanism beyond MOOCs and online courses to increase the number of Colombians using ICT tools and learning ICT technical skills and competencies. The proposed MinTIC Academy is the platform recommended for offering a digital badging program, along with other online offerings. Primary and Secondary Education: Building ICT skills and promoting careers As described in Framework 1, a critical area of opportunity is teacher training to improve the use of ICT in the class- room. MinTIC has enabled connectivity and provided computers to schools and communities, but hurdles remain to their effective use. One challenge is that many teachers and counselors are not comfort- able with the technology, let alone able to integrate ICT into their classrooms. Fur- ther, counselors are not able to advise students on the value of ICT in their careers or to direct students to ICT-specific educa- tion and job opportunities. MinTIC can take the lead, working in partnership with MEN, to develop pro- grams designed to: • Train teachers and counselors in the basics of using ICT technologies. • Develop classroom materials or modules that incorporate technology into lesson plans, consistent with the recommenda- tions provided in Framework 1. • Facilitate development of apps and other more advanced services for the Core Recommendation The Challenge: Insufficient level of ICT technical skills and competencies in Colombian society to achieve socioeconomic development and innovation objectives Proposed Solution: Scale MinTIC’s ICT talent initiatives up to a massive level through a MinTIC-approved digital badging program that will be accessible to all Colombians—not just ICT professionals—and aimed at developing basic and advanced ICT technical skills. Use the proposed MinTIC Academy as the main platform. * classroom, connecting the ICT industry directly with the education system, as described in Frameworks 1 and 3. • Create a recognition program for teach- ers excelling in the use of ICT in the classroom—such as the prize for ICT education innovations described in Framework 1. A second area of opportunity is to promote ICT careers as well as ICT career readiness. MinTIC has already undertaken promotional and popularization activi- ties, including Redvolucion, IT Mujeres, and arranging to feature an attractive ICT professional in a popular telenovela. The next steps should address the value of ICT skills for career opportunities. For exam- ple, training can be provided to school career counselors about work and entre- preneurship opportunities in the ICT industry, demonstrating that students will gain access to better careers if they develop competencies in computer science, com- puter engineering, electrical engineering, information systems management, systems engineering and architecture, or computer networking. Counselor training should also address the demand for ICT technical skills in non-ICT careers and industries. Peer examples, case studies, and success profiles, as well as data on jobs and wage premiums, may be useful in telling the story of why ICT skills are worthwhile to the student. The project team also recommends that MinTIC think beyond just ICT when working with a young student population. Themes such as innovation, technology, film and television, cyberspace, and gaming may expand general interest in programs SupportingRecommendation The Challenge: Teachers and counselors are not prepared to integrate ICT into the classroom or career guidance programs, limiting the benefit for students of MinTIC’s connectivity and technology distribution initiatives. Proposed Solution: Partner with MEN to develop teacher and counselor training programs on technology basics and to create classroom materials incorporating ICT tools into lesson plans; involve ICT companies via Apps.co to create education apps for the classroom. * Environment: Talent & Institutions T D D T S D
    • MIT TECHNOLOGY REVIEW 57GOVERNMENT POLICY REPORT that incorporate ICT skills, more than ICT by itself. ICT-focused programs should also be incorporated into business, science, technology, or engineering curricula that already exist, leveraging student interest in these fields, but adding an ICT component. ICTSkillsforIndustry n Businesses have complained about the lack of high-quality ICT skills among work- ers in Colombia, where, for example, 85 percent of engineering graduates report- edly need retraining. The Global Talent Competitiveness Index 2013 ranks Colom- bia 71st out of 103 countries, with partic- ular weaknesses identified in “labor and vocational” and “lifelong learning” mea- sures. The quality of math and science edu- cation and staff training among businesses produces some of the lowest rankings for Colombia within the Global Information Technology Report (2013) Networked SupportingRecommendation The Challenge: Students do not pursue ICT-relevant studies, either because they do not know about the broad range of job and career opportunities requiring ICT skills or they do not find an “ICT job” appealing. Proposed Solution: Collect, share, and promote data on actual salaries and job openings for jobs requiring ICT skills; create “career models” through peer examples, case studies and success profiles to personify ICT-related career opportunities. * Readiness Index. MinTIC therefore seeks programs it can implement which will show results in both the short and long terms to improve the quality of ICT work- ers to benefit both the ICT industry and Colombia’s other productive sectors. ICT Certification Programs for Individuals In the near term, MinTIC has focused on expanding completion of third-party cer- tification programs to meet the identified needs of businesses in Colombia. Specifi- cally, MinTIC has initiated an ICT training program to encourage more students and professionals to complete international IT certification programs with, for example, Microsoft, Adobe, Blackberry and SAP.9 MinTIC has partnered with ICETEX, a government entity that offers financial programs for higher education, for this program. ICETEX’s objectives are consis- tent with MinTIC’s, and include connecting training to the priority areas of regional and national development and ensuring social and regional fairness in access to higher education.10 MinTIC funds this joint program, but it is administered by ICETEX. ICETEX pays the universities to offer and run the certification programs, while MinTIC pays the full cost for the students/professionals. Professionals who are already working can complete certifications in four to six months. 9 All information on this program comes from a telephone interview with Angela Nocua, MinTIC, conducted December 2013. 10 www.icetex.gov.co/dnnpro5/en-us/elicetex/ quienessomos.aspx Students enrolled in technology/technician programs can add this certification to their degree. This is a potential model for future MinTIC-university collaboration. While there is currently no link between completing the certification and the availability of a specific job, Colombian companies have identified these certifi- cations as addressing their areas of need. MinTIC also intends to integrate this pro- gram into the regional cluster initiatives that are described in Framework 2. ICT Training Programs for Companies and Industries MinTIC’s joint program with ICETEX focuses on students and individuals. MinTIC should also consider creating certification programs organized around businesses. For example, in the United States, the Indiana Technology Enhance- ment Certification for Hoosiers (TECH) program provides assistance to increase the state’s number of certified informa- tion technology workers.11 Businesses can receive up to $50 thousand, $2,500 per employee or 50 percent of the company’s IT budget, whichever is the smallest amount. This not only helps individual companies secure the ICT skills they need to be suc- cessful, but also deepens the state’s pool of ICT professionals. Another approach MinTIC may con- sider is creating customized industry- or company-specific ICT training programs, especially for Colombia’s strategic sec- tors. This approach has been successful in Jalisco, where an industry-led group estab- lished certification programs (rather than degree programs) and created teacher- training programs focused on relevant niches for the regional economy that met specific company needs. 11 www.hoosiersites.com/media/docs/Hoosier%20 Energy-IN%20Tax%20Incentives-Loans.pdf Core Recommendation The Challenge: Unmet industry demand for workers with specific ICT credentials. Proposed Solution: Continue and expand the third-party certification program for university students and professionals created in partnership with ICETEX. Monitor and promote outcomes to encourage future participation and program expansion. * Environment: Talent & Institutions YOUNG PEOPLE 1. Educators 2. Techies 3. ParentsBadges for Digital Skills Massive Increase in Digital Talent People Teaching Digital Skills Tools & Content that Teach Digital Skills The Key Resource! Jobs Citizenship Empowerment ET T T ET ET T SOURCE:MOZILLA Mozilla Web Literacy Strategy: Badges and Skills That Create ICT Talent
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW58 Many states in the United States that suffer from a real (or perceived) lack of tal- ent or skills in certain industries, including ICT, also offer company-specific, custom- ized training programs. These programs allow states to reassure companies—often large investors—that they will find the workers they need in a reasonable time. Customized training programs such as Louisiana Economic Development’s Fast- Start program and Georgia’s Quick Start also help to reduce uncertainty and influ- ence investment decisions. ICTCompetenciesat Colombia’sUniversities n As noted in Framework 3, serious weak- nesses exist in the ICT ecosystem around entrepreneurship education, the quality of the technical education at universities below the top tier, technology transfer, and product and services design. Framework 3 recommendations include developing regional centers for ICT innovation, uni- versity entrepreneurship and innovation centers, and proof-of-concept centers. Product Design/Services Research The project team also suggests devel- oping ICT-focused product design and services research and teaching centers at Colombia’s universities. Design thinking approaches, including “needs finding” and product-prototyping competencies, are at the heart of demand discovery and product and services design and development used successfully in the United States. Stanford’s Department of Mechanical Engineering has been working with UniAndes and the Javeriana University in Cali to develop Core Recommendation The Challenge: There is no mechanism to connect ICT-credentialed workers to specific jobs in industries with unmet demand for ICT skills. Proposed Solution: Create a program that can provide customized training for firms with demonstrated demand for workers needing ICT technical skills, working in partnership with SENA, ICETEX, universities, or other qualified training providers. * similar programs, which are important for developing the capacity to identify latent demand for ICT products and services. MinTIC can take the lead in creating and funding these centers, but should work in partnership with the Ministry of Education on implementation. The proposed entrepreneurship centers can also serve as a mechanism to extend ICT technical skills and competency to engineering and business schools. As noted in Framework 3, gaps in practice-oriented ICT entrepreneurship education exist in Colombia. Recommendations include expanding the role of adjunct faculty with ICT industry experience and building a stronger ICT-focused curriculum. SupportingRecommendation The Challenge: A lack of design thinking in Colombia’s university-level ICT programs. Proposed Solution: Establish ICT-focused product design/services research and teaching centers at Colombia’s universities, connected to the proposed regional centers for ICT innovation. * Experiential Education for University Students Apprenticeships, internships and other forms of “experiential education” can also be expanded to improve the quality of the ICT workforce by providing real-world experience to complement skills learned in Environment: Talent & Institutions Customized Training Connects Companies to Talent The Economist magazine was one of several media outlets to highlight Louisiana’s FastStart as the ‘gold standard’ for workforce training.1 FastStart provides free customized training services to qualifying companies. To qualify, companies must create 15 new permanent manufacturing jobs, or 50 permanent service jobs. Firms must be in one of several broadly defined industries targeted by Louisiana Economic Development, a state agency. After approval, FastStart connects the company to subject matter experts to better define the company’s needs and what will be required of the employees it is seeking. It then undertakes preemployment screening, such as testing, interviews, and workplace simulations so that it has a qualified pool of initial applicants. It then provides the agreed-upon training program with the goal of providing the company with the workforce its needs, when it needs it. After the training is completed, the company owns the training materials. Other states run customized training programs through their technical and community college systems. North Carolina’s customized training program takes advantage of the State’s highly regarded community college system. The community college system manages this program, and through its 58 colleges provides recruitment, screening, and training services to companies that are adding jobs, making technology investments, or trying to increase their productivity.2 Similarly, Georgia’s Quickstart program is run through the state’s technical college system and Colorado’s FIRST customized job training program is a cooperative effort of the Colorado community college system and the Office of Economic Development and International Trade (OEDIT).3 1 www.economist.com/node/21526915 2 www.nccommunitycolleges.edu/Business_and_Industry/CustomizedTraining.htm 3 www.advancecolorado.com/funding-incentives/incentives/job-training-grant-programs ET U U T U
    • MIT TECHNOLOGY REVIEW 59GOVERNMENT POLICY REPORT the classroom. The ICT world moves much faster than the classroom (even in the most engaged and agile university), so it is especially valuable to both students and companies in the ICT field to offer “on the ground” experience. For example, the Lero program (referenced in the Trends report) in Ireland requires engineering undergrad- uates to spend part of their degree working with a private company. The Volgenau School of Engineering at George Mason University in the United States has a formal corporate partnership program “created for companies who want to be notably visible and accessible to our engineering students and faculty” and includes paid internships and full-time positions for students.12 This report does not include a recom- mendation to create a national internship or apprenticeship program, but suggests it as one option that could be implemented on a company-by-company basis within the proposed sector and regional strategies addressed elsewhere in this report. Strengthening the Academia-Industry Link Engaging the private sector is an impor- tant element of the industry and university proposals described above. There are many ways to successfully involve the private sec- tor in talent programs. • Survey businesses to ask what specific skills and credentials they seek for cur- rent and forecast job openings. • Track students who have completed MinTIC-supported programs to moni- tor employment and salary patterns. • Survey companies that have hired stu- dents and professionals who have completed MinTIC-supported programs to assess satisfaction with skill levels and identify new training needs. • Create an advisory board that includes business executives and human resources professionals to guide development of new courses or training programs. Cham- bers of commerce could be asked to take on the role of executing this effort. • Track and publicize results. Framework 2 (Competitiveness) rec- ommends several additional steps and 12 volgenau.gmu.edu/partners/ corporate-sponsorship-program lessons learned to increase private-sector participation in Vive Digital 2 initiatives and strengthen the government-univer- sity-industry partnerships to achieve the country’s socioeconomic objectives. MinTIC Fellows MinTIC should consider creating a special program to cultivate and recog- nize the best ICT talent from Colombia’s universities through a “MinTIC Scholars” or “MinTIC Fellows” program. A fellows program would raise the profile of the ICT discipline in the country and, depending on how it is structured, could provide a talent pool for MinTIC itself and the ICT industry. One model is the American Association for the Advancement of Science (AAAS) Fellows program, in which fellows are rec- ognized for meritorious efforts to advance science or its applications.13 This model is essentially about peer recognition. A varia- tion on this theme would be recognition for top students graduating from univer- sity ICT programs. A different model is the US Presidential Management Fellows program,14 which provides leadership train- ing for individuals working at US federal agencies. In this program, graduate schools nominate their best students, a set of whom are selected for two-year appointments to work in one or more federal agencies. The fellows receive leadership and management training, individualized career develop- ment plans, a variety of work assignments, potential to convert to a permanent posi- tion, and networking with other fellows. This is an elite and competitive program that attracts thousands of applicants, and carries lasting cachet for its participants. Following the second model, a group of top-performing fellows could be hired by MinTIC to advance the Vive Digital 2 goals. For example, they could form a cadre of top ICT talent within MinTIC that would then be deployed to work with and solve policy problems for key MinTIC partners in other ministries, at the departmental level, or within regional clusters. They could serve as the foundation of a MinTIC think tank, working with different Vive Digital 2 ini- tiatives. Over time, the fellows who have 13 www.aaas.org/page/aaas-fellows 14 www.pmf.gov passed through this program may develop into a network that can build relation- ships between academia, government and industry that will enable Vive Digital 2’s long-term goals to come to fruition. ICTTalentfor Government n This section describes programs and initiatives to improve ICT skills among national, regional and local government staff and raise ICT awareness or digital literacy among elected officials and policy makers. Increasing ICT Talent within Government A policy challenge for Colombia and MinTIC is ICT capacity-building within government agencies at the national, regional and local levels. While Colombia has made great strides in its e-govern- ment strategy (as described in Framework 2), more needs to be done, especially to develop the back-office functions to sup- port online government services but also to achieve Vive Digital 2’s overarching goal to create a digital culture throughout Colom- bia. To do this, government agencies at all levels need more and better ICT-trained leaders and employees. University-Based ICT-for-Government Curriculum One option is to work with universities to develop and offer an ICT for Govern- ment curriculum. This may either be part of a larger degree program or a stand-alone series of courses culminating in a certificate or other type of non degree credential. If pursued, this initiative should be coordi- nated with the proposed regional center for SupportingRecommendation The Challenge: A lack of design thinking in Colombia’s university-level ICT programs. Proposed Solution: Establish ICT-focused product design/services research and teaching centers at Colombia’s universities, connected to the proposed regional centers for ICT innovation. * Environment: Talent & Institutions U T U T U
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW60 ICT innovation for e-government described in Framework 2. In this case, a consistent curriculum across the country would be appropriate. Since MinTIC is the agency with the most expertise in this area, we recommend that MinTIC take the lead in organizing this initiative, but implement it in cooperation with universities and government repre- sentatives at all levels. MinTIC could also consider partnering with a top non-Colom- bian university with expertise in ICT and ICT policy to create a best-in-class program that can garner global recognition while achieving excellence in implementation. If developed in coordination with government representatives, this ICT for Government program should have a ready, long-term and steady stream of par- ticipants, giving stability to the university offering the programs and credibility to the governments through the affiliation with an established university. MinTIC would likely be in the best position to coordinate and provide input on the core elements of the curriculum, at least to start. The proposed MinTIC Academy may also be a platform or partner through which to offer this level of e-government training throughout the country. Government CIO Executive Education A second option is to develop IT leadership capacity at all levels of government. One of the identified challenges is that regional governments look to the central level and MinTIC to provide answers and develop Core Recommendation The Challenge: Lack of ICT skills within regional and municipal governments to implement and manage e-government initiatives. Proposed Solution: Develop an ICT for Government curriculum with one of Colombia’s universities, in partnership with a non-Colombian university with expertise in this area. This recommendation should be coordinated with the proposed digital- badging initiative and the regional center for ICT innovation for e-government proposed under Framework 2. * programs, instead of having the capacity to do so internally. We recommend creat- ing and convening groups of government chief information officers (CIOs) and spe- cialized peer networks for leadership and program management training. These net- works are common in Europe and the US in organizations such as EuroCIO and the US-based National Association of State CIOs (NASCIO). Again, we see MinTIC as the institution best positioned to imple- ment this initiative, given its reputation, interest and experience in ICT programs. There are several different models to consider. One is a formal association bringing together private-sector and gov- ernment CIOs, with dedicated staff and programming that would offer training, workshops, networking, information shar- ing, and recognition programs all geared toward the needs of government ICT lead- ers. Now that, thanks to MinTIC’s efforts, most departments have a digital plan and/ Core Recommendation The Challenge: Lack of ICT leadership capacity within regional and municipal governments to develop e-government initiatives. Proposed Solution: Create and convene groups of government and private-sector CIOs for education, leadership, and program management training to improve ability to implement ICT solutions at the regional and municipal levels. * or a CIO, the opportunity exists to build on this network to solidify gains and entrench ICT thinking at this level of government. Inviting private-sector CIOs to participate would build an additional ICT indus- try-government link and connect supply and demand for ICT innovation, thereby supporting the Colombian ICT sector as discussed in Framework 1. Another model is a less structured peer network of directors and managers that meets regularly but informally to discuss agreed-upon topics and share informa- tion and lessons learned. This approach is better suited to specialized topics (for example, e-health or e-justice coordination) than to overarching ICT implementation. A third model would build on the concepts of a MinTIC think tank and the MinTIC Academy through which training, case studies, open source modules, best prac- tices, and even hands-on consulting and implementation could be provided to other government agencies at the national or departmental level. ICT for Elected Officials Beyond developing ICT talent among government employees, it is necessary to educate politicians who are not tech savvy about how ICT can improve govern- ment operations and help them achieve their communities’ socioeconomic devel- opment goals. The Governors’ Academy for ICT that Minister Molano has led is a good model that should be continued and expanded to other elected officials. Environment: Talent & Institutions T T ET T TEDXWORKSHOPATTEDACTIVE2013
    • MIT TECHNOLOGY REVIEW 61GOVERNMENT POLICY REPORT An academy model, including short and focused workshops (possibly in a retreat setting), plenty of opportunities for net- working, involvement of private-sector leaders, prominent speakers, and a variety of social and educational options, can be very effective for political leaders. A variation on this theme would be a TEDx style program in which “a combi- nation of live presenters and TED Talks videos sparks deep conversation and connections” about topics of interest. A hallmark of TEDx events is the presen- tation of brief, lively, diverse talks—not lectures—designed to provoke conversa- tions.15 Regardless of whether MinTIC chooses a retreat, TEDx, or traditional edu- cational offering (through, for example, the MinTIC Academy), a variety of program styles (and fewer lectures or seminars) cre- ates the opportunity to demonstrate ICT in creative ways that can be both more appealing and more instructive to policy- makers who are not well-versed in ICT technologies. Institutions This section addresses institutional models to implement many of the rec- ommendations presented in this plan. It also addresses the specific challenge of strengthening the role of the private sec- tor and academia in the digital ecosystem and in support of the Vive Digital 2 goals. Many policy options are presented in this framework document. It will not be possible to implement all of them, and 15 www.ted.com/pages/about_tedx SupportingRecommendation The Challenge: Elected officials who lack an ICT background do not see the potential of ICT to help them achieve socioeconomic development goals in their communities. Proposed Solution: Increase understanding of ICT policy issues among elected officials at all government levels by offering non-technical, big-picture events addressing ICT topics, built around popular speakers, private-sector leaders, networking, and social activities. * MinTIC will need to select and prioritize the recommendations. Therefore, instead of presenting one model to cover all pos- sible program choices, this section presents five institutional arrangements through which any or all of the policies may be pursued. Some guiding concepts for this approach are: 1. MinTIC is ready to expand its policy reach beyond the resources that it controls directly. Put another way, to accomplish the broad socioeconomic goals of reducing poverty, increasing competitiveness, and becoming a world leader in the use of ICT for socioeconomic development, MinTIC must work with other government agencies and partners in academia and the private sector. 2. MinTIC will encounter the very challenges it is trying to address as it implements the Vive Digital 2 strategies, and these challenges may limit effectiveness in the near term. To take one example, many of the strategies involve implementing advanced ICT solutions in industries and governments across the country, but Colombia faces a shortage of sophisticated ICT talent. MinTIC itself may not yet be able to access the full range of talent it will take to implement all of the proposed programs. In short, the market may not be ready yet for some of the objectives MinTIC wishes to pursue, so MinTIC will be in the posi- tion of trying to create market demand for ICT services in many segments it wishes to serve. We do not want to propose an insti- tutional arrangement that sets MinTIC up for failure—or perceived failure. Therefore, a single new pan-government organization intended to encompass all Vive Digital 2’s goals is not recommended. 3. Short-term gains and recognition are critical, but the socioeconomic goals are necessarily long term. Even the most effective government program will not register changes in factors such as poverty, competitiveness, and education in one, two, or even three years. It will be necessary to continue to measure and promote access and connectivity gains (as was done under Vive Digital I) as well as to employ a variety of process measures and customer satisfaction surveys to demonstrate progress in the near term. Vive Digital is ready to expand beyond the MinTIC “greenhouse,” but the ground is not yet ready to support growth in the digital ecosystem all throughout Colombia, whether thinking about industry, academia or regional government. Switching meta- phors, more work needs to be done before MinTIC can operate as a “machine to keep Vive Digital going.” The five proposed institutional arrange- ments, which have no ranked order, are: • ICT leadership via a “seat at the table” • MinTIC think tank/MinTIC lab • New MinTIC programs in the existing MinTIC structure • MinTIC policy lead • S t r e n gt h e n i n g t h e a c a d e m i a - government-industry link. ICTLeadershipviaa “SeatattheTable” n The Vive Digital 2 ambition is vast, and other partners already have primary responsibility for achieving many of the socioeconomic objectives related to eco- nomic development, education, justice, etc. MinTIC has strong programs and a track record of success that should be attractive to these partners. However, these part- ners—whether other ministries, other programs or regional cluster leaders—are unlikely to view ICT as the driver of suc- cess in their own program areas. Therefore, they are unlikely to wish to view MinTIC as a leader in their respective fields. Instead, they may be more amenable to coopera- tion if MinTIC approaches partnerships by offering ICT tools and services that help them achieve their own objectives in their own existing programs. We recommend that MinTIC join other initiatives and programs and take a “seat at the table” to listen, understand partner needs, and then offer specific solutions in response, rather than approaching partners with MinTIC programs per se and then trying to get others to buy in. For example, instead of asking MEN to develop digital content to support ICT development, an Environment: Talent & Institutions T
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW62 alternative is to ask how MinTIC can offer ICT tools and inputs to enhance MEN’s curriculum or teacher training objectives. Taking the time to build relationships at the staff level, becoming a good and reliable partner for others, and using this time to listen and offer ideas will enable MinTIC to lay the groundwork for more wide-ranging ICT strategies in the future. This approach also relieves some of the pressure from the Minister because these relationships can be built at the staff or subministerial level. MinTICThinkTank/Lab n A MinTIC think tank or lab can be responsible for organizing the partner- ship–seat-at-the-table outreach, develop- ing appropriate solutions for challenges raised through that outreach, and creating ICT content for a variety of audiences. In some ways, the think tank can be thought of as an internal consulting unit designed to help national, regional, and local govern- ment organizations to use ICT effectively. An alternative model is an interdisciplinary institute tasked with addressing ICT and innovation priorities that require cooper- ation among government, academic, and private-sector actors. Many of the program ideas suggested here could flow through the think tank, including the MinTIC fellows, innovation strategies, efforts to support the regional clusters—any initiative for which MinTIC must work through partners, which faces outwards, and for which it does not fully control the resources to achieve its objec- tives can be housed here. Denmark’s MindLab provides one example of this outward-facing approach to problem-solving and innovation in govern- ment. Established in 2002, MindLab “is a cross-governmental innovation unit which involves citizens and businesses in develop- ing new solutions for the public sector.” Its “owners” include the Ministry of Employ- ment, the Ministry of Business and Growth and the Ministry of Education, plus the city of Odense, but the Ministry for Economic Affairs and the Interior is also listed as a partner. MindLab addresses cross-cutting topics such as entrepreneurship, digital self-service, education and employment. The Broad Institute, a biomedical research institute in Cambridge, MA, is another model. Created to address “the most critical challenges in biology and medicine,” the Broad Institute has created a culture and organization designed to support large-scale collaborations across multiple institutions (primarily MIT, Har- vard and Harvard-affiliated hospitals) and participants that include students, post- doctoral fellows, professional scientists, administrative professionals, and aca- demic faculty, as well as international collaborations involving over 100 proj- ects across more than 40 countries. The Broad Institute was founded in 2003, and later endowed through a philanthropic gift in 2008. It is organized as a nonprofit research organization. NewMinTICPrograms ServingBusiness, IndustryandGovernment Directly n While many programs in the Vive Digi- tal 2 framework require collaboration with partners, MinTIC can implement several directly , using the same model used to pro- vide programs and services in Vive Digital I. For example, programs to support the ICT industry, such as innovation grants, voucher programs, support for entrepre- neurship clubs, creation of mentor net- works, and business plan competitions, would likely best be served by remaining within MinTIC. Other initiatives, such as technical assistance to ICT SMEs or ICT-related business services for non-IT companies, may be provided through partners (such as SENA) but may be created and imple- mented primarily through MinTIC-run programs. The proposed online university model also seems appropriate to build and maintain through MinTIC. MinTIC Policy Lead MinTIC should take the lead for the cen- tral government and the nation to craft and implement a set of policy recommenda- tions that will affect all Colombians. These include digital rights for Colombian citi- zens; an e-government strategy; and the open source, data privacy, and open data policies. MinTIC is also best positioned to develop a program to guide government ICT purchases that would favor Colom- bian firms. Strengtheningthe Academia-Government- IndustryLink Strengthening the academia-govern- ment-industry link will happen through successful collaboration, not the other way around. A wide-reaching, top-down effort to create academic-industry-government collaboration is not likely to generate mean- ingful results for any of the participants. Instead, we recommend nurturing link- ages throughout the variety of programs Environment: Talent & Institutions U COPYRIGHT©2014BROADINSTITUTE The Broad Institute is essentially an “experiment” in a new way of doing science, empowering this generation of researchers to: act nimbly, work boldly, share openly, reach globally. broadinstitute.org
    • MIT TECHNOLOGY REVIEW 63GOVERNMENT POLICY REPORT suggested in this report. Some will work better than others, and some will not work at all, but in this way MinTIC can build a track record, identify and share lessons learned across programs as the ministry builds these linkages, and develop a repu- tation as a good partner. Success begets success in these matters. On the specific issue of strengthening the ties between the private sector and uni- versities, some guidelines are: • Develop programs (especially for tal- ent and innovation initiatives) together, rather than “we create a program, you apply.” • Use the proposed regional centers of IT innovation and university entrepre- neurship and innovation centers as focal points for collaboration and information sharing (Details on these recommenda- tions are provided in Framework 3). Structure them to facilitate interdisci- plinary collaboration among university researchers, enable a variety of funding mechanisms to support research activ- ities, and encourage interaction with private industry and the community in ways that are difficult to achieve within traditional academic structures. • Require private sector participation in cluster and training programs before releasing funds. • Think broadly about what constitutes private-sector participation. Include large and small companies in key sec- tors but also invite the organizations that support them—publications, investors, service providers, associations, and other support programs. • Cultivate a network of exceptional people and highly influential individuals from all three segments. Offer them access, relationships, and expertise in exchange for their time. • See Framework 2 for other recommen- dations on engaging and sustaining private-sector participation in specific programs. MetricsandPerformance Impacts Sample metrics for this topic may include: • Number of certifications completed through the MinTIC/ICETEX program • Employment among students complet- ing certification • Customer satisfaction with quality and value of certification • Salaries or wages among students completing certification Environment: Talent & Institutions What is Broad? The Broad Institute brings together a diverse group of individuals from across its partner institutions— undergraduate and graduate students, postdoctoral fellows, professional scientists, administrative professionals, and academic faculty. The culture and environment at the Broad is designed to encourage creativity and to engage all participants, regardless of role or seniority, in the mission of the Institute. Within this setting, researchers are empowered—both intellectually and technically—to confront even the most difficult biomedical challenges. The Institute’s organization is unique among biomedical research institutions. It encompasses three types of organizational units: core member laboratories, programs, and platforms. Scientists within these units work closely together—and with other collaborators around the world—to tackle critical problems in human biology and disease. Core Members Each core member of the Broad Institute leads a laboratory consisting of students, postdoctoral fellows and scientific staff. These laboratories are similar in structure and membership to laboratories at academic institutions. However, rather than being embedded in a single department, core member laboratories are physically adjacent to those of scientists from other disciplines, and work collaboratively with researchers both within and outside of the institute across a range of critical projects. Programs Programs and program initiatives are intellectual communities that unite researchers around a shared scientific focus. They are comprised of core and associate members and their laboratories, as well as Broad Institute staff. Program scientists meet regularly to share ideas, launch collaborations that extend beyond the capabilities of any individual laboratory or institution, and pursue ambitious projects with the potential to transform their field. Platforms Platforms and platform initiatives are professional organizations that bring together the technological, informatics, and management expertise necessary to create unmatched capabilities for the Broad’s research. They are led by and comprise professional staff scientists with deep scientific expertise, organizational skills, and experience executing projects that are far-reaching in scope and scale. Platform scientists routinely push the frontier of rapidly evolving technologies and pursue projects that could not be undertaken within a single academic laboratory.
    • GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW64 • Number of individuals reached through ICT’s popularization and outreach programs • Number of secondary school teachers trained in ICT skills • Number of counselors trained in ICT use and in ICT career information • Number of students expressing interest in ICT-related careers • Number of students pursuing ICT- related fields of study at universities and technical schools • Number of students completing ICT degrees • Improvements in index measures of tal- ent (such as the Networked Readiness Index and Global Talent Competitive- ness Index) • Number of government workers partici- pating in ICT training • Number of government workers com- pleting credentialed ICT coursework • Number of ICT managers participating in CIO workshops • Number of elected officials and gov- ernment administrators (non-IT) participating in academies or workshops • Number of partnerships initiated by MinTIC (government, university, private) • Number of partnerships in which MinTIC is actively engaged • Number of ICT projects generated by partnerships (with outcomes defined by project) Environment: Talent & Institutions Supporting Recommendations* Digital rights for citizens (1) Lead organization for e-government at national level (2) Open source policy (2) Wireless access points and apps store (1) ICT innovation investments or vouchers for SMEs (2,3) MinTIC Academy (1): ICT for SMEs (2); Digital badges (4); Events for politicians (4); Teacher- counselor training (1,4); ICT for Government curriculum (4) Regional center of ICT innovation of e-government (4) E-health strategy (1) ICT for Agribusiness (2) Regional centers of ICT innovation (3) University entrepreneurship and innovation centers (3) Proof-of-concept centers (3) Customized ICT training for companies/strategic sectors (4) CIO council (4) Product design centers (4) Data privacy policy (2) Open data policy (2) ICT purchases to favor Colombian firms (3) Tablet program for students (1) Smart cities policy (2) Entrepreneur in residence (3) Potential for mobile banking (1) ICT for logistics summit (2) Regional ICT strategy implementation (2) Outreach: TEDx, civic hacking (1) Prize for e-education/ entrepreneurship (1) Open data communities of practice (2) Investor networks (3) MinTIC Policy Lead MinTIC is the national leader to craft poli- cies that will affect all Colombians and all government agencies. MinTIC Programs MinTIC creates, finances, and manages these programs inter- nally; they do not require external partnerships to implement. MinTIC Lab MinTIC initiatives for which MinTIC must work through partners, are outward-fac- ing, and require external resources or agreements to achieve objectives. “Seat at the Table” Other organizations (including other central government ministries) already have primary responsibility for achieving the socioeconomic objectives related to these recommendations, but MinTIC brings ICT to the table to improve their outcomes. Building the Academia- Government-Industry Links MinTIC facilitates and/or bro- kers these relationships that are created in the service of broader ICT and socioeco- nomic development objectives. Core Recommendations* (Framework areas are noted in parentheses) MatrixofRecommendations/InstitutionalApproach
    • MIT TECHNOLOGY REVIEW 65GOVERNMENT POLICY REPORT Environment: Talent & Institutions Colombia has a chronic and deep shortage of seed stage, debt, and project finance for startups, MSMEs, SMEs, and social ventures. The MinTIC crowdfunding platform is an experimental test bed developed with MinTIC financial, technical, and in-kind support, with the goal of enabling startups, universities, enterprises and public sector organizations to rapidly prototype, design, test, and deploy trial crowdfunding applications aimed at solving particular financial market gaps and needs across Colombia. • Colombia has a major gap in seed stage and debt finance, and in new project financing • New ICT platform dedicated to developing prototype debt and equity crowdfunding applications, tools, and services for Colombian farmers, MSMEs, SMEs, and social projects • Will require the parallel development of a supportive policy, legal and regulatory regime Conceptual Diagram for a New ICT Test Bed for Developing Trial Equity/Debt Crowdfunding Applications MARKETS • Domestic Market • Large International Markets (e.g. LatAM, Africa, Asia) MARKET TRIALS • Equity crowdfunding for startups & SME’s, MSMEs • Crowdfunding of new arts, social and culture projects (e.g. Kickstarter & Indiegogo) • Debt croudfunding for MSMes, SMEs APPS.CO • Make platform available to Apps.co teams for prototype product design, test & deployment DEVELOPMENT • Develop new ICT platforms for crowdfunding applications • Designed & Coded in Colombia AIMS TO ADDRESS •Address persistent shortage of equity and debt finance for new companies & projects MinTIC Crowdfunding Platform New ICT test bed for building and testing new crowdfunding services & products COPYRIGHT–BURTONHOYTLEE2014.ALLRIGHTSRESERVED(EDITSANDMODIFICATIONSPERMITTED). S D D
    • Thank You Minister Diego Ernesto Molano Vega Vice Minister María Carolina Hoyos Turbay Vice Minister María Isabel Mejía Jaramillo Nicolás Llano Naranjo Guillermo Alberto Cruz Alemán Juan José Uribe López Germán Ricardo Hernández Guerrero Juan David Muñoz Córdoba Miguel Felipe Anzola Luis Carlos Trujillo Arboleda Juan Manuel Barrionuevo Juan Mauricio Benavides Ana Lucía Rosales Callejas Gressy Kareny Rojas Cardona Stephen Carson Martha Patricia Castellanos Reinaldo Adolfo Garzón Cruz Carlos Pablo Marquez Escobar Juan Manuel Barrionuevo Esteban Oscar Arturo Benavides Gonzalez Cynthia Graber Nelson González Enrique González Guerrero Ellen Harpel Alicia Rios Hurtado Edson Jenner Sánchez Ipia Tom Kadala Kathleen Kennedy Burton Lee Luis Fernando Lozano Antoinette Matthews Francisco Medina Albeiro Cuesta Mesa Diana Rocio Celis Mora Alejandro Delgado Moreno Jorge Andrés Restrepo Múnera Vladimir Guzmán Páez Erik Pages Beatriz Helena Díaz Pinzón Johanna Pimiento Quintero Claudia Elizabeth Obando Rodriguez Wilson Adiel Rodríguez Teresa del Pilar Rubiano Luis Carlos Sanabria Juan Sebastián Sandino Juan Carlos Martínez Santos Oscar Giovanni León Suarez Mark Surman Sonia Esperanza Monroy Varela Santiago Aparicio Velasquez Ana María Veloza Irving Wladawsky-Berger Copy Editing, Design and Illustration Claudia Arkush Su Berland Stuart Bradford Deanna Mirsky Julie Swanson This report was produced by MIT Technology Review Custom. Thank you to the following people who contributed their opinions and expertise:
    • Colombian Ministry of Information and Communication Technologies ICT Promotion Office Telephone: +57 (1) 3443460 Ext. 2211 Address: Edificio Murillo Toro Cra. 8a entre calles 12 y 13 Bogotá D.C. - Colombia Zip Code: 111711 www.mintic.gov.co – www.vivedigital.gov.co