Beyond Switzerland's Shadow: Why Chile And Brazil Lead Latin America In Innovation

(MENAFN- The Rio Times) Chile and Brazil may sit far down the global leaderboard-51st and 52nd out of 139 economies in the 2025 Global Innovation Index-but they stand at the forefront of Latin America's struggle to innovate.

Behind these rankings lies a deeper story of ambition, investment and the hurdles that still slow the region's progress. Switzerland-ranked first for 14 consecutive years-continues to set the pace in innovation.

The country leads with some of the highest R&D spending relative to GDP, strong intellectual property protections, and seamless partnerships between top universities and industry.

Its model converts every franc of research funding into patents, high-tech exports and creative goods. Latin America's challenge is to replicate that formula.

Regionwide, research investment grew just 2.9 percent in 2024 and is expected to slow further, while venture-capital deals have shrunk in number, concentrating only in a handful of megadeals. Too often, scientific advances in Latin America stall before finding markets.
Yet Chile and Brazil have built islands of innovation:
Chile leverages top-tier digital infrastructure-among the continent's fastest broadband networks-plus one of the highest university-enrollment rates in the region. Stable regulations and active links between universities and private firms have drawn critical investment into tech hubs.



Brazil's edge comes from scale. As Latin America's largest economy, it sustains robust corporate R&D and venture funding. Its research institutions rank in the global top 25 for scientific publications, and a vibrant creative sector-from digital media to design-adds new dimensions to innovation.

The story behind the story reveals why these two leaders still face a persistent“input-output gap”: their research ecosystems deliver strong capabilities but underperform in turning ideas into patents, commercial products and scalable start-ups.

Experts say that boosting private funding for applied research and simplifying financing channels for entrepreneurs are the keys to closing that gap.

For international investors and policymakers, these findings signal where Latin America can grow: strengthening R&D incentives, forging deeper university-industry ties and expanding venture-capital networks.

As global competition heats up in fields such as artificial intelligence and green technology, the region's economic future hinges on turning research potential into real-world breakthroughs-just as Switzerland has done for years.

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