Unlocking innovation potential in Latin America and the Caribbean

A joint EPO–ECLAC study highlights the role of intellectual property rights (IPR) in driving growth and productivity in Latin America and the Caribbean, while identifying gaps in innovation performance and opportunities to strengthen technology transfer, co-operation and policy frameworks.

A new joint study released today by the European Patent Office (EPO) and the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) examines how manufacturing industries that rely on intellectual property rights (IPR) contribute to economic performance in the region.

“Intellectual property can support development, but its economic impact depends on the broader innovation ecosystem and the policy frameworks that support it,” said EPO President António Campinos. “The region already has significant talent and scientific expertise, but commercialisation skills, technology transfer and stronger university-industry links, together with effective public policies and greater regional co-operation, are essential to turn innovation into sustainable value.”

“Latin America and the Caribbean need the discussion on intellectual property to mature and align more with other productive development policies; one that focuses less on intellectual property as a tool in isolation and more on the ecosystem in which it operates. Intellectual property can contribute to development, but it will do so more effectively when it forms part of comprehensive productive development policies aimed at closing technological gaps, strengthening domestic capacities and improving the region’s position in higher value-added activities,” said José Manuel Salazar-Xirinachs, Executive Secretary of ECLAC.

IP‑intensive industries drive growth and jobs

The study finds that IPR‑intensive manufacturing industries, such as automotive, electronics and pharmaceuticals, account for 13.6% of GDP and around 1.6 million jobs across the LAC region. These industries are significantly more productive than others, resulting in average wages around 30% higher. The effect is particularly strong in patent‑intensive industries, with productivity gains of 16% and wage premiums exceeding 50%. 

A region imports more technology than it exports

Despite their economic importance, IPR‑intensive industries in LAC generate only 9% of regional exports, while accounting for 19% of imports. Patent‑intensive products alone represent 15% of total imports.

This imbalance is also reflected in patenting activity. More than 85% of patent applications filed in the region originate from foreign applicants, while domestic applicants account for just 13.5%. Trade and patent flows from the United States and Europe far exceed those within the LAC region.

Untapped domestic innovation potential

At the same time, the study highlights significant local innovation capacity. Public research institutions, including universities and national laboratories, account for 29% of domestic patent filings between 2016 and 2020, with around half of this activity linked to patent‑intensive manufacturing. 

In 2020, the global share of technologies invented in the region was 80% higher than the share of patents owned by LAC applicants. This points to a gap between where innovation is created and where it is ultimately owned, particularly in computer technology, where a large share of inventions originating in the region are owned by foreign companies, primarily based in the United States and Europe. Strengthening collaboration, technology transfer and regional partnerships could help countries better exploit this potential and reduce reliance on imported technologies.

From research to real‑world technologies

A concrete example of local innovation potential is last year’s Young Inventors Prize finalist, Mariana Pérez from Colombia. Founder of Ecol‑Air, she developed a biomimetic air‑pollution capture technology that removes pollutants from the air and converts them into reusable biodegradable materials, supported by international patent protection. Her journey from early experimentation to market deployment illustrates how protecting and scaling innovation is key to turning ideas into economic and societal value.

Another example comes from the European Inventor Award 2024 finalists. Brazilian inventors Fernando Catalano and Micael Carmo, working with Embraer and the University of São Paulo, developed aerodynamic and aeroacoustic technologies that reduce aircraft noise while lowering fuel consumption and CO₂ emissions in regional jets. Their patented innovations demonstrate how collaboration between academia and industry, supported by strong IP protection, can generate technologies with global market impact.