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Inclusive Innovation Against All Odds: The Case of Peru

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Abstract

Policy design and implementation can be influenced by the diffusion of ideas. That was the case of science and technology policy during the 60s and 70s. International organisations helped in this diffusion, but developing countries were not ready to make such policy reforms. As a result, policies were poorly implemented and were difficult to coordinate with other policies even when the latter were national objectives. That was the case regarding science and technology and social inclusion policies in Peru. However, the priority of reducing poverty has indirectly contributed more to technology transfer than the actual science and technology policy. The strategy of strengthening production chains to connect poor producers to dynamic markets and the focus on demand proved to be very effective. Science and technology policy requires an adequate institutional setting that eases coordination among the different actors involved and provides resources and capacities to attend the demands of society.

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Notes

  1. 1.

    RICYT is the Latin American Network for Indicators on Science and Technology.

  2. 2.

    According to Hekkert et al. (2007) there are seven functions that innovation systems should perform: (1) knowledge development and diffusion; (2) influence on the direction of search; (3) entrepreneurial experimentation; (4) market formation; (5) legitimation; (6) resource mobilization; and (7) development of positive externalities.

  3. 3.

    A Commission led by Jeffrey Sachs defined eight Millennium Goals: (a) eradicate extreme hunger and poverty; (b) achieve universal primary education; (c) promote gender equality and empower women; (d) reduce child mortality; (e) improve maternal health; (f) combat HIV/AIDS, malaria and other diseases; (g) ensure environmental sustainability; and (h) develop a global partnership for development. The Commission was formed by 10 task forces that analyzed specific issues related to the main goal of reducing poverty, hunger and disease. One of these reports, Innovation: Applying Knowledge in Development, highlighted the significant role that science, technology, and innovation can play in implementing the Millennium Goals. The basic assumption that guided this report was that most of the goals cannot be achieved without a framework of action that places STI at the center of the development process. The STI report recommended approaches for effectively applying STI to achieving the goals that included: the use of generic technologies that may have broad applications or impacts in the economy; the improvement of infrastructure as a foundation for technology; the improvement of higher education, especially in science and engineering; the improvement of the policy environment; and the focus on areas of underfunded research for development (UN Millennium Project 2005).

  4. 4.

    Eguren (2006) stated that the economic reforms in the 1990s paved the way to the development of a modern agriculture geared towards external markets. He specially mentioned that the elimination of restrictions in land markets and corporate investments were crucial to the expansion of a modern agro-exporting sector in the Coast.

  5. 5.

    INCAGRO’s final evaluation was performed using a decomposition method instead of a typical quasi experimental method. Salles-Filho et al. (2010) stated that this methodology was more suitable for a technology program which comprised different types of innovation. The decomposition method comprised two main elements: decomposition of the formal and informal goals of the program obtained from documents and interviews), and dialogue with the participants through structured panels.

  6. 6.

    A third phase of INCAGRO was planned but the project was aborted in 2010.

  7. 7.

    The 2010 average exchange rate was S/. 2.826 per US$1.

  8. 8.

    These include: agro-industry; mining and environment; logistics; software; fashion design; textile and apparel; alpaca confections; tropical fruits and medicinal plants and cacao.

  9. 9.

    Verdera (2007) proposed 4 different types of poverty related policies. Poverty eradication policies are aimed at eliminating poverty, to eliminate the number of poor people. Poverty alleviation policies are meant to support vulnerable population via social assistance programs, which can be temporal or permanent. Extreme poverty programs are aimed at eliminating extreme poverty. Overcoming poverty policies increase opportunities for poor people via access to education, health and infrastructure.

  10. 10.

    Many of the arguments against the increase of STI budgets were that compared to poverty alleviation the former were not critical for improving economic development. In addition, the programs that concentrated most of the allocated budget for poverty alleviation were those that attended short-term needs of the poor population.

  11. 11.

    These 3 regions are among the poorest in Peru. According to the Regional Competitiveness Index 2011, Cajamarca ranks as the 24th region from 25, falling 2 positions from 2010; Cusco ranks in the 12th position, falling 2 positions from 2010; and Apurímac ranks in position 23 (CENTRUM 2012).

  12. 12.

    Yacon is an indigenous root that contains an especially healthy sugar that is not digested by the body and therefore yacon does not elevate blood glucose levels making it safe for diabetics and weight watchers.

  13. 13.

    Purple maize is typical from Peru. It is the main ingredient for a traditional beverage called purple chicha and a dessert made out from this beverage (i.e. purple porridge). This maize is rich in anthocyanins (also known as flavonoids), which are reported to have anti-diabetic properties. There is some evidence that purple maize helps lower blood pressure, reduce inflammation and protect from cancer.

  14. 14.

    The SDC did not publish any evaluation report of this project, although there are some internal documents that provide some findings about the performance of the project.

  15. 15.

    For example, the CIP developed potato seeds that would secure a longer shelf life in the supermarkets.

  16. 16.

    Stevedores in the Lima wholesale market agreed to change the bulk weight of potatoes from 75 kg to 50. This reduction in weight increased the efficiency of handling and reduced the risks of occupational injuries.

  17. 17.

    Kaplinsky and Morris (2001) highlighted the important role of standards in achieving governance in value chains. They mentioned three levels of governance. First, one level is defined by the basic rules that are to be met to participate in the value chain. Most of these rules are related to standards that secure quality and specific industry standards (i.e. phyto sanitary and HACCP). A second level is related to monitoring and securing the compliance of those basic rules. A third level refers to establishing the mechanisms to help producers meet the standards.

  18. 18.

    The INCOPA project focuses on creating new value added rather than just strengthening an existing production chain.

  19. 19.

    USAID PRA project rests on Riordan’s (2007) philosophy: “supply-pushed thinking leads people to try to sell what they produce, whereas demand-driven thinking leads them to produce what they can sell” (page 51).

  20. 20.

    Sierra Exportadora was created in 2006. Its mission is to promote and develop economic activities in the Peruvian Andean region to help producers articulate with domestic and international markets. In its first years, Sierra Exportadora received various critiques, such as its lack of capacity to articulate with other government programs as well as its blown up goals. Sierra Exportadora’s stakeholders welcomed the strategic alliance with the USAID PRA project.

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Correspondence to Juana R. Kuramoto .

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Kuramoto, J.R. (2014). Inclusive Innovation Against All Odds: The Case of Peru. In: Crespi, G., Dutrénit, G. (eds) Science, Technology and Innovation Policies for Development. Springer, Cham. https://doi.org/10.1007/978-3-319-04108-7_6

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