Chapter 3: Innovation and Industrial Policies to Foster Digital Transformation of Manufacturing Available to Purchase

This chapter explores policy efforts by governments in Latin-America to promote the digital transformation of domestic manufacturing firms. The analysis sheds light on how countries in the region are tackling trends toward digitalization of manufacturing. While windows of opportunity emerge to further industrialization, threats of renewed digital gaps are possible. Countries in the region face the challenge of investing and accumulating the foundational capabilities necessary for the digitalization of manufacturing. The findings from our analysis suggest that Latin-American countries have made significant progress in their path to digitalization, especially by improving digital connectivity and enabling adoption of advanced digital technologies in several areas of social and economic activity. The presence of all-of-government approaches to digitalization conforms to good international practices. By contrast, governments in the region are still to leverage the potential of digitalization to boost industrialization. Progress will require more systematic policy efforts to further a suitable learning environment and promote capability building in production, innovation, and the creation of new digitally enabled business models at firm level.