The document discusses Chile's efforts to create an ecosystem for innovation and entrepreneurship through various policy initiatives. [1] Chile has transitioned from an economy focused on macroeconomic stability to one that prioritizes innovation, establishing programs like INNOVA Chile in 2001 to promote business incubation and seed funding. [2] INNOVA Chile later improved its model in 2005 by better integrating financing with mentoring and adding new incentive tools. [3] Public-private partnerships are seen as important to avoid projects becoming "spoiled" for the market if they rely too heavily on public funding, or not innovative enough if relying solely on private funding. Successful models require a systemic, evolutionary approach with specialized human

1. Creating an Ecosystem for Innovation and Entrepreneurship: From Policy to Reality
The Case of CHILE
INTI NUNEZ
Executive head
The Committee of Ministers for Innovation
Head division of Innovation
Ministry of Economy
INTI NUNEZ
December 2007
Head Division of Innovation. Ministry of Economy. CHILE

2. Why are governments policy frameworks for innovation,
entrepreneurship, intellectual property and technology
transfer important?
1 Chile has a small open economy
with solid macro fundaments.
However, this model that
prioritized macroeconomics
conditions affected public
investment in Science,
Technology & innovation.
Source:
OCDE (2007) Neutral policies National strategies
Effect ‘glass’ ceiling for middle income countries (Porter et al
2 (2001), Leamer et al (2003))
Chile is a middle income country that has lost competitiveness
because low wages and low level of environmental regulations
decreased. Chile needs to change its drivers of development.
Source:
Leamer (2003)
I II III
Chile is in the first stage of the development National
3 Innovation System
Public funds are the main driver to growth and develop more
investment in R&D. In the case of US, they needed public
investment that create public goods and after they received Source:
more private investment in R&D. NSF (2004)
INTI NUNEZ
Head Division of Innovation. Ministry of Economy. CHILE

3. Why is business incubation supported and what is it role
in fostering innovation and entrepreneurship? How does
incubation relate to other PSD and innovation initiatives?
It is necessary ‘smart money’ (funding,
1
contact & experience) in the chain of
entrepreneurship support. In the first stage,
incubators are a strategic partner for proof
concept funds.
Source: Hodgson (2007)
In a second stage of development, incubators
2
need to develop networks among different
areas: research, business angels, business
developers, technology transfer office, etc.
Source: Babraham Institute (2005)
INTI NUNEZ
Head Division of Innovation. Ministry of Economy. CHILE

4. How is business incubation supported? What types of
national public sector policies and programmes support
incubation and other innovation initiatives?
2001
INNOVA Chile
created a new
incubator
programme and a
new seed capital
grant fund.
However, the two
programmes did not
have formal
connexion.
2005
INNOVA Chile
created a new
model that
integrated two
areas: finance and
mentoring, and Source: INNOVA Chile (2005)
include new
incentive tools.
INTI NUNEZ
Head Division of Innovation. Ministry of Economy. CHILE

5. Are public-private partnerships important and how can
they play a role in promoting innovation?
If the policy considers only
grants (public support),
projects could be ‘spoiled’ for
the real market.
If the policy is excessively
private, probably projects will
be not different to ‘regular’
projects.
Source: INNOVA Chile (2007)
INTI NUNEZ
Head Division of Innovation. Ministry of Economy. CHILE

6. What lesson have been learnt? What work and what does
not work, what successful model exist and how can they
scaled up?
The entrepreneurship policy must consider an evolution (time & stages)
and it must be systemic (different integrated tools) because it needs
Strategy
social apprenticeships and is complex.
systemic & complex
More constructivism and less positivism.
A specialised human resource base is a core issue in national
entrepreneurship policies. A good policy to support entrepreneurs needs
Human
people specialised in: business planning, finance, marketing, negotiation,
Resources
leadership, teamwork, etc. Incubators are institutions where these people
specialised
can be prepared.
Research, research, and research. If entrepreneurship policy pretends to
achieve spin-off and dynamic technology enterprises, they are directly
Research correlated with research capabilities. There are three disciplines which
connected
produce the majority of entrepreneurs: engineering, chemistry and life
sciences.
INTI NUNEZ
Head Division of Innovation. Ministry of Economy. CHILE