What are a country's achievements in innovation, and how does this relate to economic

performance? What are the major features, strengths and weaknesses, of its innovation

system? How can government foster innovation?

The OECD Reviews of Innovation Policy offer a comprehensive assessment of the

innovation system of individual OECD member and non-member countries, focusing

on the role of government. They provide concrete recommendations on how to improve

policies which impact on innovation performance, including R&D policies. Each review

identifies good practices from which other countries can learn.

Over the last decade, Chile - a small, open economy with a traditionally strong

resource-based production - has been the most successful Latin American country in

reducing the gap in income per capita vis-à-vis the advanced countries. To complete

this catching up, Chile needs to further strengthen some of the institutional pillars of an

efficient market-oriented economy, notably its innovation system. A growing political

awareness of the importance of innovation for the country's future has recently translated

into two bold decisions: the creation of an Innovation Council for Competitiveness

entrusted with the mission of proposing guidelines for a long-term national innovation

strategy; and the introduction of a specific mining tax to increase resources available

to implement this strategy. This report assesses the current status of Chile's innovation

system and policies, and identifies where improvements are most needed in order to

make the most efficient use of this additional public investment.