Public procurement for innovation: Challenges and prospects for Latin America

With regards to innovation, compared to other regions, Latin America has not excelled. According to the 2011 Global Innovation Index (GII) Ranking, Chile is in 38th place, Brazil in 47th, Argentina in 58th and Mexico 81st. However, an innovation-driven economy is key for the region´s competitiveness. This paper explores if public procurement can be used as an effective tool to enhance the innovation performance in four Latin American countries (Argentina, Brazil, Chile and Mexico). The findings illustrate the weaknesses present in the selected countries that could hinder the potential of public procurement for innovation to boost their innovative activities. Latin American governments should address these challenges and make the necessary adaptations before implementing this policy.