A low rating in Chile's research and development environment led to the country to fall five places in the 2011 edition of the Economist Intelligence Unit's IT Industry Competitiveness Index, conducted for the Business Software Alliance (BSA).
Chile has fallen 21 places since 2009 to date in the R&D category to 52nd place - behind Brazil, Argentina, Mexico and Colombia. This sharp decline was mainly due to the limited filing of patents for technological innovation.
As a result, Chile has lost competitiveness in the technological innovation industry, dropping from 27th place to 32nd in only two years. However, it continues at the forefront of Latin America.
In the global ranking, including 66 countries, Chile scored 43 points considering several parameters, while the countries of the Organization for Economic Cooperation and Development (OECD) - to which Chile belongs - averaged 57 points in technological innovation.
"It's clear that we have an unresolved challenge. Technological innovation is key to improving productivity and economic growth in Chile," said Rodrigo Bulnes, BSA representative in Chile. "The Achilles' heel is clearly the weak research and development environment."
Among the positive aspects, Chile stands out for strong gains in technological infrastructure and the support for this industry's development. In addition, the country showed the highest score on a global scale for technology neutrality in the government sector.