Latin American Subnational Innovation Competitiveness Index

This report is a collaboration between the Information Technology and Innovation Foundation (ITIF), MacroConsult, the Colombian Chamber of IT and Telecoms (CCIT), the Mackenzie Center for Economic Freedom, Fundación IDEA, and Libertad y Desarrollo.

---

For policymakers to bolster the global competitiveness of their nations and regions, they first must know where they stand. This report benchmarks the 182 regions of Brazil, Chile, Colombia, Mexico, Peru, and the United States using 13 commonly available indicators of strength in the knowledge economy, in globalization, and in innovation capacity.

KEY TAKEAWAYS

• The United States claims all the top 47 regions, with Massachusetts, California, and Washington ranking the top three.

• Three states in the United States (Mississippi, Alaska, and West Virginia) rank lower than the very-best-performing Latin American regions.

• The five best-performing regions in Latin America are Mexico City, Mexico; Sao Paulo, Brazil; Lima, Peru; Bogotá, Colombia; and Arequipa, Peru.

• While Latin American regions lag behind U.S. regions in their overall scores, there is less variation in regional scores in Latin America.

• Peruvian regions, along with many regions in Colombia, Brazil, and Mexico, lag behind U.S. regions most visibly in broadband adoption. U.S. regions also particularly excelled at venture capital and patent applications compared to their Latin peers.

• Policymakers must open their regional innovation markets to both a continental and global scale to create internationally competitive ecosystems and accelerate development.

• Policymakers must boost local research and development (R&D), entrepreneurship, and patent applications for a resilient economy with cutting-edge development opportunities.