Biotechnology and Development Preliminary Findings from Argentina, Brazil and Chile

GRACIELA E. GUTMAN; PABLO LAVARELLO

Rio de Janeiro

Conferencia; J. A. Schumpeter Society Conference: The Southern Conference; 2008

J. A. Schumpeter Society

Latin-American countries have been historically characterized by production structures highly relying on natural resources. The import substitution phase pushed towards diversification and laid the foundations for the creation of technological and industrial capabilities. However, deregulation and liberalization policies established since the end of the 70’s discouraged this economic path, strengthening the specialization based on comparative advantages. The expansion of agro-food international markets in recent years – driven both by growing demands from emergent countries, notably China, India and East Asia countries, and by sustained increases in production and productivity in important agro food systems, particularly those based on soy and grains - has reinforced this specialization pattern. Nevertheless, those traditionally low knowledge intensive sectors show nowadays different traits. Major restructuring processes and the introduction of technological and organizational innovations induced significant production and technological changes, basically due to the new technological paradigm of Modern Biotechnology (MB). In Latin America, Argentina and Brazil are the two most important countries regarding MB diffusion in agro-food systems. This process has been leaded by the adoption of “technological packages” in agriculture production. The new scenario raises several strategic issues concerning the potentialities of biotechnologies to foster the development in the Region.The generation of endogenous capabilities has important consequences in the configuration of absolute advantages of the countries.   Our central hypothesis in the case of Modern Biotechnology in agro-food systems is that progress is based upon (and associated with) the scientific knowledge and the technological capabilities achieved in the pharmaceutical industry, in the fermentation industries and in the traditional breeding activities, along with the institutional capabilities developed trough the public/private interaction. In particular, the initial developments of MB in human health were one of the preconditions for the adoption of MB in agro-food and other economic activities. The main purpose of this paper is to analyze the implications of this hypothesis in Argentina, Brazil and Chile, considering the opportunities MB offers for the development of local new innovative capabilities and upgrading processes.