Papeles
Nº 1. November 2010
and evaluate the programmes. The launch of a public-
private forum for sharing experiences, developing ideas or
building capabilities could be also considered.
• Consolidate the areas of collaboration among public
authorities to promote innovation for development. This is
required by the transversal and interdisciplinary nature of
the topic. From an institutional perspective, the channels for
dialogue between the Ministry of Foreign Affairs and
Cooperation and the Ministry of Science and Innovation
could be reinforced. Political and strategic guidelines should
be translated into shared lines of action between the Spanish
International Development Cooperation Agency (AECID)
and the Centre for the Development of Industrial
Technology (CDTI).
• Take advantage of the Spanish companies’ potential. The
Spanish private sector has a valuable expertise in certain
sectors and geographic contexts. Focus should be placed on
involving their core business through innovative activities.
Inclusive businesses could result in a greater development of
the concerned communities.
• Foster linkages between public sector, private companies and
universities. Convergence between public and private areas
must be broadened to include universities. Indeed, they have
a consolidated research tradition. The resulting alliance
could be a driving force behind generating innovation for
development. Therefore, the public sector would fulfil its
mandates based on development cooperation policies. At
the same time, private companies could develop new
business avenues with a positive impact on development.
Finally, universities could perform their function of
enlarging the frontiers of knowledge, with increased
opportunities for its practical application.
• Strengthen development finance instruments. There is room
to develop a new model appropriate to the magnitude that
reimbursable aid could acquire in the next years.
Collaboration with the private sector could be fostered
through an existing structure or by means of a new one.
Ultimately, the strengthening of the links between science,
innovation and development would set the bases for a
sustainable human development model. Spain has taken a
first step in this direction by promoting science and
Papeles
Nº 1. Noviembre 2010
Fundación Carolina - CeALCI
C/ General Rodrigo, 6, 4º. Edif. Germania.
28003 Madrid
www.fundacioncarolina.es
Depósito Legal: M-47.560-2010
innovation in European strategies to fight against poverty.
The way is now open for the inclusion of innovation and
knowledge in the international development agenda.
References
ADAM SMITH INTERNATIONAL (2009): Support to
“Business for Development”: A review of new approaches
and donor agencies experiences (Draft report), London.
ASHLEY, C. (2009): Harnessing core business for development
impact. ODI Background Note, February 2009. London.
EUROPEAN COMMISSION (2010): Europe 2020. A
strategy for smart, sustainable and inclusive growth,
Commission Communication COM(2010) 2020,
Brussels.
UNITED NATIONS CONFERENCE ON TRADE AND
DEVELOPMENT- UNCTAD (2009): World Investment
Report 2009. Transnational Corporations, Agricultural
Production and Development, New York and Geneva.
CONWAY, G. and WAAGE, J. (2010): Science and Innovation
for Development, UK Collaborative on Development
Sciences, London.
STUDY GROUP ON THE FUTURE OF THE EUROPEAN
UNION (2010): Project Europe 2030. Challenges and
opportunities, Report to the European Council.
MINISTRY OF FOREIGN AFFAIRS AND COOPERATION
(2009): Plan Director de la Cooperación Española 2009-
2012.
UNITED NATIONS (2005): Final Document of 2005 World
Summit, A/60/L.1, New York.
UNITED NATIONS EDUCATIONAL, SCIENTIFIC AND
CULTURAL ORGANISATION – UNESCO; OECD
(2009): Innovation for Development: Converting
Knowledge to Value. Summary Report, UNESCO, Paris.
ORGANISATION FOR ECONOMIC COOPERATION
AND DEVELOPMENT - OECD (2010a): The OECD
Innovation Strategy: Getting a Head Start on Tomorrow,
OECD, Paris.
(2010b): Innovation and the Development Agenda, OECD,
Paris.
IBEROAMERICAN GENERAL SECRETARIAT – SEGIB
(2010): Bases para un nuevo Programa Iberoamericano de
Innovación.
Fundación
Carolina
CeALCI
Fundación
Carolina
CeALCI
Innovation and Development Cooperation:
Trends in Public-Private Collaboration
Carlos Botella, José Andrés Fernández, Ignacio Suárez*
This document is a result of the project: Latest trends in cooperation: governments and private companies invest in development,
undertaken by the authors from April to October 2010 according to an initiative of the director of Fundacion Carolina, Rosa
Conde. The research team was coordinated by Marisa Revilla, director of the Fundacion Carolina’s Centre of Studies for Latin
America and International Cooperation. Its objective is to analyse the most recent international cooperation initiatives in rela-
tion to public-private collaboration for the promotion of R&D and innovation as part of development strategies. The results of
this research will be published in their entirety by Fundacion Carolina in its series “Documentos de Trabajo”.
Innovation for Development Alliances are fostered between firms from the region,
research and development agencies and universities.
Research and innovation have become key driving forces
behind economic growth and development. They provide The private sector as a potential partner
the basis for a new economic model based on knowledge,
growing productivity and competitiveness, generating The private sector plays a significant role in trade and
quality employment. Research and innovation are potential financial relationships with developing countries1.
tools for governments to face major current challenges such Collaboration with private companies is thus
as poverty or climate change. complementary to public activities aimed at reducing
The positive effects of innovation are of particular poverty and improving the living conditions of the most
relevance to developing countries. In the short term vulnerable.
innovation can be used to overcome crises. In the long term Some firms have become aware of their power of
it facilitates reduction of the “technology divide” affecting transformation, and have incorporated social, ethical and
such countries. environmental criteria in their relations with developing
The significance of innovation has been emphasised by a countries. Furthermore, new initiatives have arisen in
number of international organisms. The decisive importance which firms’ ‘core business’ is adapted to the situation in
of science and technology for development objectives is each country.
recognised in the 2005 United Nations World Summit’s Final The promotion of public-private collaboration must be
Document. This also calls for an environment favourable to seen in this context. Donors’ cooperation policies pay
public-private alliances and identifies innovation as an agent increasing attention to collaboration with the private sector
in economic growth and the eradication of poverty. and develop new types of relationships. The resulting
A political strategy for intelligent and sustainable growth dynamics and financial support can counteract what is
is also outlined in the European Commission’s Europe 2020 known as “donor’s fatigue”. Likewise, they have the potential
communication. Innovation is highlighted as a key to reinforce the prominence of development on the
component of this. It is aimed at strengthening a international agenda.
development model based on knowledge and the effective
–––––––––––––––
use of resources.
* Researchers at Fundacion Carolina
Initiatives aimed at supporting applied research for
technological innovation have also been promoted by the 1. According to estimates made by the United Nations Conference for
Ibero-American Community of Nations. These are based on
Trade and Development (UNCTAD), Foreign Direct Investment in
developing countries totalled more than $400,000 million US in 2009
the idea of public-private collaboration for innovation. (UNCTAD, 2009).
papeles nº 1. fundación carolina - cealci 1
 The promising role of firms in technology and
knowledge transfer to developing countries must be
emphasised. Hence the relevance of analysing the private
sector’s potential for the generation and spread of
innovation.
Business innovation for development
International cooperation initiatives, private sector activities
and R&D&I2 policies converge at a single point: business
innovation for development (see Figure 1). The significance
of business innovation as a factor in development is due to
the role of firms not only as generators of economic activity
and employment, but as the introducers of new
environmentally sustainnable technologies.
Companies are responsible for defining global value
chains. They can contribute to innovation by involving the
most vulnerable segments of developing countries as clients,
employees, producers or entrepreneurs. This approach,
known as “inclusive businesses”, suggests that firms should
adopt economically sustainable solutions in order to satisfy
the needs of low-income communities. The result is a win-
win situation. Such a business model enables vulnerable
communities to become organised and enter the economic
sphere, widening the limits of production and consumption
and providing access to public services.
figure 1: Business innovation for development
Business innovation Bilateral
cooperation
for development
Promotion of Collaboration with
R&D&I the private sector
Ultimately, the idea is to reinforce the positive impact of
business activities on development through a greater
inclusion of the societies concerned.
New Donors’ Initiatives
Public-private collaboration has grown in importance on
leading donors’ agenda. Furthermore, most of them have
added ‘business innovation for development’ as a new field of
activity. These experiences share a series of common
elements, as described below.
Mutual trust and incentives
Mutual trust is a key requirement for the establishment of
effective collaboration between governments and private
2 papeles nº 1. fundación carolina - cealci
enterprise. It demands dialogue and the acceptance of
commitments and responsibilities by both parties. This
process is not entirely free from difficulties. Some have
expressed reluctance about the association’s pertinence and
efficacy. Hence the importance of identifying areas in which
incentives can be aligned. Although a complex process, it
must be flexible enough to enable the implementation of
improvements.
The establishment of mutual trust makes a further
demand. Both governments and firms should accept the
need to increase social awareness and improve internal
communication within their own organisation.
The promotion of innovation against poverty
Donors, aware of the virtues of public-private collaboration,
have created programmes in their cooperation agencies in
order to implement their strategic decisions. Recently, donors
have included in these programmes a specific ‘business
innovation for development’ dimension3.
The small-scale structure of these programmes –at least
from an institutional perspective– generates occasional resort
to outsourcing. On a functional level, their added value lies
not only in the provision of funding, but in the advisory
services related to the situation in a particular country or
sector, or in intermediating between firms and other agents
(such as multilateral organisations, public agencies, NGOs,
etc.). Additionally, several donors have created public-
private forums for dialogue, information-sharing and
training purposes.
The rationale behind these programmes stems from
the ideas of complementarity to other cooperation activities
and additionnality, as a sum of efforts promoted through
public incentives. The goal is to generate a “leverage effect”,
that is, the possibility of attracting a significant amount of
private funds with relatively modest public contributions.
Public support can take several forms. These include the
co-funding of studies or pilot projects, financial support for
business investments in products and technologies with a
possible impact on development and/or the provision of
information about investment conditions in a given
country.
Specific initiatives to support business innovation for
development can be characterised by a number of elements:
Periodic launch of calls for ideas in order to foster
competitive processes that enable the identification of the
most interesting innovative initiatives. They are based on co-
funding –normally up to 50%– of feasibility studies for
future business initiatives.
–––––––––––––––
2. Research, development and innovation.
3. This analysis is based on the study of the initiatives promoted by the deve-
lopment cooperation agencies of three European donors: Germany, United
Kingdom and Sweden. They are, respectively, Developpp.innovation (GTZ),
Business Innovation Facility (DFID) and Innovations Against Poverty (SIDA).
Priority given to the innovative nature of these projects.
Importantly, priority will also be given to new business
models that can be replicated and are potentially adaptable to
local needs and social acceptance.
Environmental aspects to be stressed, in order to
generate innovation of interest for both private enterprise
and communities.
Lack of general constraints regarding the sector, the
geographic area (other than specific strategic priorities), the
size of the firms involved, or the source of the aid.
In any case, there is little collaboration between
innovation and development agencies in the studied systems.
This should be examined, bearing in mind the need for
effective inter-institutional coordination mechanisms in
order to ensure policy coherence.
The role of Development Finance Institutions
A second factor must be emphasised, in parallel to the
public-private collaboration programmes fostered by
cooperation agencies. This is the growing role played by
‘Development Finance Institutions’ (DFI) in Europe in
relation to the private sector, largely providing
reimbursable financing.
DFIs, of various types depending on the donor
involved, provide long-term financing to firms in both
developed and developing countries. The aim is to enable
firms to invest in the latter. DFIs currently play a significant
role in international cooperation policies because of their
capability to adequately manage public cooperation funds.
Further-more, they are important for their ability to
generate profits and therefore to contribute to
socioeconomic development in less advanced countries.
Opportunities for Spanish Cooperation
An evolving framework
The Spanish Government has exhibited a strategic
commitment to promote sustainable development and
substantial changes in the pattern of economic growth. For
example, the Spanish Sustainable Development Strategy
(2007) contains a section focused on international
cooperation for sustainable development. The Strategy for a
Sustainable Economy (2009) highlights the need to transform
the economic growth model.
The Government has therefore made an effort to
consolidate the role of innovation and knowledge as
driving forces for development, including them in the
Spanish cooperation agenda. Additional support has been
provided by the Ministry of Science and Innovation
through the Science, Technology and Innovation Bill and the
State Innovation Strategy (2010). Both deal with the concept
of international projection of innovation and knowledge, as
well as with collaboration with the Ministry of Foreign
Affairs and Coope-ration. These measures represent an
acknowledgement of the contribution made by research,
technology and innovation to the poverty reduction
strategies.
Reference should also be made to the organisation of the
“Science against Poverty” Conference (April 2010) during the
Spanish presidency of the Council of the European Union.
The Conference assessed the contribution of science and
innovation to the Millennium Development Goals. Its
conclusions emphasised the need to identify public-private
alliances and methods for increasing the private sector’s
involvement. These conclusions were presented to the EU
Competitiveness Council of Ministers in May 2010, and
adopted as Council Conclusions on the Social Dimension of the
European Research Area.
The Spanish development cooperation strategy, as
defined in the 3rd Master Plan 2009-2012, also includes
science and innovation as critical factors. The Master Plan
is also open to collaboration with the private sector.
Therefore, public-private partnerships represent an
appropriate modality to articulate projects combining
investments in innovation and knowledge with effects on
development.
Spain’s development cooperation system is in the
process of restructuring its main instrument for working
with the private sector. The old Development Aid Fund
(FAD) has been divided into two specific tools: the Business
Internationalisation Fund (FIEM) and the Fund for the
Promotion of Development (FONPRODE). Both could
generate a new framework for public-private collaboration
regarding innovation.
Future challenges: institutional strengthening
and consolidation of convergence areas
Public-private partnership is a key factor to promote
innovation as a tool for sustainable human development.
Convergence areas have become explicit in various Spanish
and European Union initiatives: (i) between science,
innovation and development; and (ii) between public and
private sectors. The consolidation of such areas is still a great
challenge. Major efforts are required in the field of
institutional strengthening.
According to the experience of the most advanced
donors, several opportunities arise for Spanish development
cooperation:
• Consider the creation of a public-private partnership
programme including a business innovation component.
This would be a gradual process based on institutional
learning. In its initial phases, such a programme would
have to adapt to existing needs and capabilities. A more
ambitious approach could be adopted depending on how
events evolve. Appropriate technical skills should be
available both at headquarters and in the field to monitor
papeles nº 1. fundación carolina - cealci 3
 The promising role of firms in technology and
knowledge transfer to developing countries must be
emphasised. Hence the relevance of analysing the private
sector’s potential for the generation and spread of
innovation.
Business innovation for development
International cooperation initiatives, private sector activities
and R&D&I2 policies converge at a single point: business
innovation for development (see Figure 1). The significance
of business innovation as a factor in development is due to
the role of firms not only as generators of economic activity
and employment, but as the introducers of new
environmentally sustainnable technologies.
Companies are responsible for defining global value
chains. They can contribute to innovation by involving the
most vulnerable segments of developing countries as clients,
employees, producers or entrepreneurs. This approach,
known as “inclusive businesses”, suggests that firms should
adopt economically sustainable solutions in order to satisfy
the needs of low-income communities. The result is a win-
win situation. Such a business model enables vulnerable
communities to become organised and enter the economic
sphere, widening the limits of production and consumption
and providing access to public services.
figure 1: Business innovation for development
Business innovation Bilateral
cooperation
for development
Promotion of Collaboration with
R&D&I the private sector
Ultimately, the idea is to reinforce the positive impact of
business activities on development through a greater
inclusion of the societies concerned.
New Donors’ Initiatives
Public-private collaboration has grown in importance on
leading donors’ agenda. Furthermore, most of them have
added ‘business innovation for development’ as a new field of
activity. These experiences share a series of common
elements, as described below.
Mutual trust and incentives
Mutual trust is a key requirement for the establishment of
effective collaboration between governments and private
2 papeles nº 1. fundación carolina - cealci
enterprise. It demands dialogue and the acceptance of
commitments and responsibilities by both parties. This
process is not entirely free from difficulties. Some have
expressed reluctance about the association’s pertinence and
efficacy. Hence the importance of identifying areas in which
incentives can be aligned. Although a complex process, it
must be flexible enough to enable the implementation of
improvements.
The establishment of mutual trust makes a further
demand. Both governments and firms should accept the
need to increase social awareness and improve internal
communication within their own organisation.
The promotion of innovation against poverty
Donors, aware of the virtues of public-private collaboration,
have created programmes in their cooperation agencies in
order to implement their strategic decisions. Recently, donors
have included in these programmes a specific ‘business
innovation for development’ dimension3.
The small-scale structure of these programmes –at least
from an institutional perspective– generates occasional resort
to outsourcing. On a functional level, their added value lies
not only in the provision of funding, but in the advisory
services related to the situation in a particular country or
sector, or in intermediating between firms and other agents
(such as multilateral organisations, public agencies, NGOs,
etc.). Additionally, several donors have created public-
private forums for dialogue, information-sharing and
training purposes.
The rationale behind these programmes stems from
the ideas of complementarity to other cooperation activities
and additionnality, as a sum of efforts promoted through
public incentives. The goal is to generate a “leverage effect”,
that is, the possibility of attracting a significant amount of
private funds with relatively modest public contributions.
Public support can take several forms. These include the
co-funding of studies or pilot projects, financial support for
business investments in products and technologies with a
possible impact on development and/or the provision of
information about investment conditions in a given
country.
Specific initiatives to support business innovation for
development can be characterised by a number of elements:
Periodic launch of calls for ideas in order to foster
competitive processes that enable the identification of the
most interesting innovative initiatives. They are based on co-
funding –normally up to 50%– of feasibility studies for
future business initiatives.
–––––––––––––––
2. Research, development and innovation.
3. This analysis is based on the study of the initiatives promoted by the deve-
lopment cooperation agencies of three European donors: Germany, United
Kingdom and Sweden. They are, respectively, Developpp.innovation (GTZ),
Business Innovation Facility (DFID) and Innovations Against Poverty (SIDA).
Priority given to the innovative nature of these projects.
Importantly, priority will also be given to new business
models that can be replicated and are potentially adaptable to
local needs and social acceptance.
Environmental aspects to be stressed, in order to
generate innovation of interest for both private enterprise
and communities.
Lack of general constraints regarding the sector, the
geographic area (other than specific strategic priorities), the
size of the firms involved, or the source of the aid.
In any case, there is little collaboration between
innovation and development agencies in the studied systems.
This should be examined, bearing in mind the need for
effective inter-institutional coordination mechanisms in
order to ensure policy coherence.
The role of Development Finance Institutions
A second factor must be emphasised, in parallel to the
public-private collaboration programmes fostered by
cooperation agencies. This is the growing role played by
‘Development Finance Institutions’ (DFI) in Europe in
relation to the private sector, largely providing
reimbursable financing.
DFIs, of various types depending on the donor
involved, provide long-term financing to firms in both
developed and developing countries. The aim is to enable
firms to invest in the latter. DFIs currently play a significant
role in international cooperation policies because of their
capability to adequately manage public cooperation funds.
Further-more, they are important for their ability to
generate profits and therefore to contribute to
socioeconomic development in less advanced countries.
Opportunities for Spanish Cooperation
An evolving framework
The Spanish Government has exhibited a strategic
commitment to promote sustainable development and
substantial changes in the pattern of economic growth. For
example, the Spanish Sustainable Development Strategy
(2007) contains a section focused on international
cooperation for sustainable development. The Strategy for a
Sustainable Economy (2009) highlights the need to transform
the economic growth model.
The Government has therefore made an effort to
consolidate the role of innovation and knowledge as
driving forces for development, including them in the
Spanish cooperation agenda. Additional support has been
provided by the Ministry of Science and Innovation
through the Science, Technology and Innovation Bill and the
State Innovation Strategy (2010). Both deal with the concept
of international projection of innovation and knowledge, as
well as with collaboration with the Ministry of Foreign
Affairs and Coope-ration. These measures represent an
acknowledgement of the contribution made by research,
technology and innovation to the poverty reduction
strategies.
Reference should also be made to the organisation of the
“Science against Poverty” Conference (April 2010) during the
Spanish presidency of the Council of the European Union.
The Conference assessed the contribution of science and
innovation to the Millennium Development Goals. Its
conclusions emphasised the need to identify public-private
alliances and methods for increasing the private sector’s
involvement. These conclusions were presented to the EU
Competitiveness Council of Ministers in May 2010, and
adopted as Council Conclusions on the Social Dimension of the
European Research Area.
The Spanish development cooperation strategy, as
defined in the 3rd Master Plan 2009-2012, also includes
science and innovation as critical factors. The Master Plan
is also open to collaboration with the private sector.
Therefore, public-private partnerships represent an
appropriate modality to articulate projects combining
investments in innovation and knowledge with effects on
development.
Spain’s development cooperation system is in the
process of restructuring its main instrument for working
with the private sector. The old Development Aid Fund
(FAD) has been divided into two specific tools: the Business
Internationalisation Fund (FIEM) and the Fund for the
Promotion of Development (FONPRODE). Both could
generate a new framework for public-private collaboration
regarding innovation.
Future challenges: institutional strengthening
and consolidation of convergence areas
Public-private partnership is a key factor to promote
innovation as a tool for sustainable human development.
Convergence areas have become explicit in various Spanish
and European Union initiatives: (i) between science,
innovation and development; and (ii) between public and
private sectors. The consolidation of such areas is still a great
challenge. Major efforts are required in the field of
institutional strengthening.
According to the experience of the most advanced
donors, several opportunities arise for Spanish development
cooperation:
• Consider the creation of a public-private partnership
programme including a business innovation component.
This would be a gradual process based on institutional
learning. In its initial phases, such a programme would
have to adapt to existing needs and capabilities. A more
ambitious approach could be adopted depending on how
events evolve. Appropriate technical skills should be
available both at headquarters and in the field to monitor
papeles nº 1. fundación carolina - cealci 3

and evaluate the programmes. The launch of a public-
private forum for sharing experiences, developing ideas or
building capabilities could be also considered.
• Consolidate the areas of collaboration among public
authorities to promote innovation for development. This is
required by the transversal and interdisciplinary nature of
the topic. From an institutional perspective, the channels for
dialogue between the Ministry of Foreign Affairs and
Cooperation and the Ministry of Science and Innovation
could be reinforced. Political and strategic guidelines should
be translated into shared lines of action between the Spanish
International Development Cooperation Agency (AECID)
and the Centre for the Development of Industrial
Technology (CDTI).
• Take advantage of the Spanish companies’ potential. The
Spanish private sector has a valuable expertise in certain
sectors and geographic contexts. Focus should be placed on
involving their core business through innovative activities.
Inclusive businesses could result in a greater development of
the concerned communities.
• Foster linkages between public sector, private companies and
universities. Convergence between public and private areas
must be broadened to include universities. Indeed, they have
a consolidated research tradition. The resulting alliance
could be a driving force behind generating innovation for
development. Therefore, the public sector would fulfil its
mandates based on development cooperation policies. At
the same time, private companies could develop new
business avenues with a positive impact on development.
Finally, universities could perform their function of
enlarging the frontiers of knowledge, with increased
opportunities for its practical application.
• Strengthen development finance instruments. There is room
to develop a new model appropriate to the magnitude that
reimbursable aid could acquire in the next years.
Collaboration with the private sector could be fostered
through an existing structure or by means of a new one.
Ultimately, the strengthening of the links between science,
innovation and development would set the bases for a
sustainable human development model. Spain has taken a
first step in this direction by promoting science and
Papeles
Nº 1. Noviembre 2010
Fundación Carolina - CeALCI
C/ General Rodrigo, 6, 4º. Edif. Germania.
28003 Madrid
www.fundacioncarolina.es
Depósito Legal: M-47.560-2010
innovation in European strategies to fight against poverty.
The way is now open for the inclusion of innovation and
knowledge in the international development agenda.
References
ADAM SMITH INTERNATIONAL (2009): Support to
“Business for Development”: A review of new approaches
and donor agencies experiences (Draft report), London.
ASHLEY, C. (2009): Harnessing core business for development
impact. ODI Background Note, February 2009. London.
EUROPEAN COMMISSION (2010): Europe 2020. A
strategy for smart, sustainable and inclusive growth,
Commission Communication COM(2010) 2020,
Brussels.
UNITED NATIONS CONFERENCE ON TRADE AND
DEVELOPMENT- UNCTAD (2009): World Investment
Report 2009. Transnational Corporations, Agricultural
Production and Development, New York and Geneva.
CONWAY, G. and WAAGE, J. (2010): Science and Innovation
for Development, UK Collaborative on Development
Sciences, London.
STUDY GROUP ON THE FUTURE OF THE EUROPEAN
UNION (2010): Project Europe 2030. Challenges and
opportunities, Report to the European Council.
MINISTRY OF FOREIGN AFFAIRS AND COOPERATION
(2009): Plan Director de la Cooperación Española 2009-
2012.
UNITED NATIONS (2005): Final Document of 2005 World
Summit, A/60/L.1, New York.
UNITED NATIONS EDUCATIONAL, SCIENTIFIC AND
CULTURAL ORGANISATION – UNESCO; OECD
(2009): Innovation for Development: Converting
Knowledge to Value. Summary Report, UNESCO, Paris.
ORGANISATION FOR ECONOMIC COOPERATION
AND DEVELOPMENT - OECD (2010a): The OECD
Innovation Strategy: Getting a Head Start on Tomorrow,
OECD, Paris.
(2010b): Innovation and the Development Agenda, OECD,
Paris.
IBEROAMERICAN GENERAL SECRETARIAT – SEGIB
(2010): Bases para un nuevo Programa Iberoamericano de
Innovación.
Fundación
Carolina
CeALCI
Papeles
Nº 1. November 2010
Fundación
Carolina
CeALCI
Innovation and Development Cooperation:
Trends in Public-Private Collaboration
Carlos Botella, José Andrés Fernández, Ignacio Suárez*
This document is a result of the project: Latest trends in cooperation: governments and private companies invest in development,
undertaken by the authors from April to October 2010 according to an initiative of the director of Fundacion Carolina, Rosa
Conde. The research team was coordinated by Marisa Revilla, director of the Fundacion Carolina’s Centre of Studies for Latin
America and International Cooperation. Its objective is to analyse the most recent international cooperation initiatives in rela-
tion to public-private collaboration for the promotion of R&D and innovation as part of development strategies. The results of
this research will be published in their entirety by Fundacion Carolina in its series “Documentos de Trabajo”.
Innovation for Development Alliances are fostered between firms from the region,
research and development agencies and universities.
Research and innovation have become key driving forces
behind economic growth and development. They provide The private sector as a potential partner
the basis for a new economic model based on knowledge,
growing productivity and competitiveness, generating The private sector plays a significant role in trade and
quality employment. Research and innovation are potential financial relationships with developing countries1.
tools for governments to face major current challenges such Collaboration with private companies is thus
as poverty or climate change. complementary to public activities aimed at reducing
The positive effects of innovation are of particular poverty and improving the living conditions of the most
relevance to developing countries. In the short term vulnerable.
innovation can be used to overcome crises. In the long term Some firms have become aware of their power of
it facilitates reduction of the “technology divide” affecting transformation, and have incorporated social, ethical and
such countries. environmental criteria in their relations with developing
The significance of innovation has been emphasised by a countries. Furthermore, new initiatives have arisen in
number of international organisms. The decisive importance which firms’ ‘core business’ is adapted to the situation in
of science and technology for development objectives is each country.
recognised in the 2005 United Nations World Summit’s Final The promotion of public-private collaboration must be
Document. This also calls for an environment favourable to seen in this context. Donors’ cooperation policies pay
public-private alliances and identifies innovation as an agent increasing attention to collaboration with the private sector
in economic growth and the eradication of poverty. and develop new types of relationships. The resulting
A political strategy for intelligent and sustainable growth dynamics and financial support can counteract what is
is also outlined in the European Commission’s Europe 2020 known as “donor’s fatigue”. Likewise, they have the potential
communication. Innovation is highlighted as a key to reinforce the prominence of development on the
component of this. It is aimed at strengthening a international agenda.
development model based on knowledge and the effective
–––––––––––––––
use of resources.
* Researchers at Fundacion Carolina
Initiatives aimed at supporting applied research for
technological innovation have also been promoted by the 1. According to estimates made by the United Nations Conference for
Ibero-American Community of Nations. These are based on
Trade and Development (UNCTAD), Foreign Direct Investment in
developing countries totalled more than $400,000 million US in 2009
the idea of public-private collaboration for innovation. (UNCTAD, 2009).
papeles nº 1. fundación carolina - cealci 1