The Pacific Alliance Blog chatted with Ulf Thoene and Roberto Garcia Alonso about their original and interesting article on Social Entrepreneurship in the Pacific Alliance and the factors that could facilitate this type of entrepreneurship.*

Ulf is a lecturer and researcher at Universidad de La Sabana in Bogota, Colombia. He holds a PhD and a Master of Laws (LLM) from the University of Warwick; a Graduate Diploma in Economics from the University of Nottingham; and a Bachelor of Arts (BA) in History from the University of Sheffield. His research interests are business ethics; informal employment; and regional integration. He has previous experience in socio-legal research and competition policy in regional contexts.

Roberto is a lecturer and researcher at Universidad de La Sabana in Bogota, Colombia. He holds a PhD in Political Science and Public Administration and a MA in Democracy and Government from the Universidad Autonoma de Madrid; a BA in Law and a BA in Political Science and Public Administration from the same university. His research interests are international relations.

How did you become interested in the topic of Social Entrepreneurship, particularly in the Pacific Alliance?

Social Entrepreneurship has become an effective alternative to address social issues worldwide through innovation as a means of creating sustainable social value. It enables empowering people to take ownership of their development; hence, requiring enhanced capacity-building efforts. As a result, Regional integration has become an effective development strategy as it fosters joint capacity building actions between countries to reduce inequality gaps. Specifically, the Pacific Alliance, recognising the region’s relative backwardness and potential in Social Entrepreneurship, devotes significant spaces and actions to entrepreneurship and innovation.

What opportunities do you see for Social Entrepreneurship in the regional context of the Pacific Alliance? Is it feasible to see regional Social Entrepreneurship growing in the medium-term?

Although the region exhibits dissimilar development paths, the PA’s interdependent regionalism offers flexibility and legitimacy in its decision-making, evaluation, discussion, and approval processes. The PA promotes cooperation, economic growth, consensus, and participation as a means to overcome inequality.

This backdrop offers meaningful possibilities for Social Entrepreneurship (SE) as a bottom-up strategy embedded within the PA’s framework. SE combines diverse actors, including local organisations, NGOs, governmental institutions, and the private sector, while promoting cooperation systems. This environment creates a unique opportunity for social innovation based on actor’s common objectives and experiences. This is especially true for Small and Medium Enterprises (SMEs), which contribute to job creation and economic growth.

SE can be extrapolated to all the region and adjusted to each country’s specific characteristics thanks to its local foundations and PA’s common cooperation goals. Under the current pandemic context, we will likely see a growing digital-based, and innovative SE as entrepreneurs find new ways to create businesses seeking to safely reach consumers while generating social change, sustainability, and growth through inclusiveness, environmental protection, and income generation.

To what extent are Social Entrepreneurship and sustainable development connected?

Continue reading

Abstract:
Through a regression model, this article aims to study what are the variables that significantly influence on the innovation pillar for competitiveness in Latin America. Subsequently, an ANOVA of innovation variables is presented. The group of countries that are part of the Pacific Alliance is contrasted with the rest of Latin American countries to find significant differences between them. The study concludes that patent application is a differentiating innovation variable for competitiveness in the Pacific Alliance in comparison to the rest of Latin America.

Resumen:
El presente artículo tiene el objetivo de estudiar, mediante un modelo de regresión, cuáles son las variables que influyen de forma significativa en el pilar de la innovación para la competitividad de los países de América Latina. Posteriormente, se hace un análisis de varianza de las variables innovadoras en el grupo de países que forman parte de la Alianza del Pacífico para contrastarlo con el resto de los países de Latinoamérica y encontrar las variables que marcan una diferencia significativa entre ambos. Se concluye que la aplicación de patentes resulta ser un diferenciador de innovación para la competitividad en la Alianza del Pacífico en relación con el resto de Latinoamérica.

Authors: Florina Arredondo Trapero, José Carlos Vázquez Parra, and Jorge de la Garza
Spanish Title: Factores de Innovación para la Competitividad en la Alianza del Pacífico. Una aproximación desde el Foro Económico Mundial
Full document: 2016, Trapero et al, Factores de Innovación para la Competitividad en la Alianza del Pacífico- Una Aproximación desde el Foro Económico Mundial

Abstract:
This working paper provides an overview of the Patent Prosecution Highway (PPH), as the only patent cooperation mechanism established within the framework of the Pacific Alliance (PA). It further explores the current state of trade flows of patent-intensive goods among PA member countries (Chile, Colombia, Mexico and Peru). Based on this background, it assesses the impact of the PPH as a vehicle to achieve increased levels of intra-regional trade, innovation and, entrepreneurship.

Resumen:
No disponible

Authors: María del Carmen Vásquez Callo and Camilo Pérez Restrepo
Full document: 2016, Vásquez & Pérez, Patent Cooperation Mechanisms in the Pacific Alliance

The Pacific Alliance wraps up the week with a couple of interesting highlights:

Photocredits: KROMKRATHOG/FreeDigitalPhotos.net
First, The fourth forum of innovation and entrepreneurship LAB4+ sponsored by the Pacific Alliance and the promotion agencies of the four members. The event held in Lima, Peru between 1-2 June aimed to connect and strengthen the entrepreneurial and innovation ecosystems of the region. The two main focuses of this year’s event were social innovation and ICTs. This event consisted of a series of seminars, investment rounds, thematic workshops and demo days.

Second the creation of the Strategic Observatory for the Pacific Alliance. An academic initiative looking to link the  government, the productive sector, and academia. The initiative is developed by four of the leading universities across the country members and will be physically based in Chile. The Observatory emerges as a form of think-tank to inform and support the technical work within the working groups of the PA.

It is worth noting that this is not the first initiative in this direction and other universities also have special programs to investigate the Pacific Alliance (see: icesi.edu.co). I guess this situation suggests that efforts should be made to integrate and coordinate the initiatives that emerge in relation to the study of the PA. Sharing a common technological platform on the projects that have been developed and will be developed would be a great way to ensure academic coordination, reduce the risk of overlapping and duplication efforts and encourage incremental knowledge. Moreover, it would be interesting to explore to what extent universities from other observer members could also join this promising initiative!

sources: http://magisterenderechollm.uc.cl

Abstract:
Not available

Resumen:
El presente trabajo tiene por objeto examinar este proceso de integración y responder las inquietudes surgidas, a fin de constatar si este modelo será una vía hacia una real integración regional o pronosticar, en consideración a su naturaleza e institucionalidad, si solo se quedará en el intento a partir de un bilateralismo convergente. Considerando que es un proceso en curso, concentraré mi enfoque en el ámbito de los desafíos que la Alianza del Pacífico promueve, con el objetivo de generar los espacios que confluyan en una integración y los retos que conlleva para que se proyecte en el tiempo.

Con la finalidad de efectuar un acercamiento a la Alianza del Pacífico, por medio de fuentes bibliográficas y acervo jurídico de la misma, este trabajo será estructurado sobre la base de cuatro capítulos: El primer capítulo, tiene por propósito revisar de manera acotada diferentes escenarios de integración en América Latina, fundándose en sus procesos más conocidos; así también, revisaré las nuevas tendencias que permitirán indagar posteriormente en la naturaleza de los objetivos que subyacen en este nuevo proyecto.

El segundo capítulo, examina la Alianza del Pacífico desde una perspectiva formal en cuanto a sus antecedentes preliminares, origen, declaraciones, estructura organizacional, entidades coadyuvantes al proceso, a fin de internalizar de qué forma se instituye.

El tercer capítulo, a partir de los dos apartados anteriores, propone insertar a la Alianza del Pacífico en el escenario de integración regional, con el objeto de indagar qué temáticas hereda de otros proyectos, lo que se hará a través de algunos elementos seleccionados para su análisis. Continue reading

Abstract:
Through a regression model, this article aims to study which are the variables that influence significantly on the innovation pillar for competitiveness in Latin America. Subsequently, an ANOVA of innovation variables is presented. The group of countries that are part of the Pacific Alliance is contrasted with the rest of Latin American countries to find significant differences between them. The study concludes that patent application is a differentiating innovation variable for competitiveness in the Pacific Alliance in relation to the rest of Latin America.

Resumen:
El presente artículo tiene el objetivo de estudiar, mediante un modelo de regresión, cuáles son las variables que influyen de forma significativa en el pilar de la innovación para la competitividad de los países de América Latina. Posteriormente, se hace un análisis de varianza de las variables innovadoras en el grupo de países que forman parte de la Alianza del Pacífico para contrastarlo con el resto de los países de Latinoamérica y encontrar las variables que marcan una diferencia significativa entre ambos. Se concluye que la aplicación de patentes resulta ser un diferenciador de innovación para la competitividad en la Alianza del Pacífico en relación con el resto de Latinoamérica.

Authors: Florina Arredondo Trapero, José Carlos Vázquez Parra, Jorge de la Garza
Spanish Title: Factores de innovación para la competitividad en la Alianza del Pacífico. Una aproximación desde el Foro Económico Mundial
Full document: 2016, Arredondo et al, Factores de Innovación para la Competitividad en la Alianza del Pacífico-Una Aproximación desde el Foro Económico Mundial

Abstract:
This paper analyses the effect of innovation activities on the growth and performance of MSMEs in the countries of the Pacific Alliance (PA). An empirical study with a sample of 386 companies from Chile, Colombia, Mexico and Peru was conducted. The methodology of multiple linear regressions by Ordinary Least Squares (OLS) was applied to verify the relationships observed. The results show that innovation in products, processes and management has a positive impact on the growth of employment and sales, also on profits. These results are particularly significant in PA’s countries and can help entrepreneurs, governments and academia to promote actions that encourage business innovation and competitiveness.

Resumen: 
Este trabajo analiza el efecto de la actividad innovadora sobre el crecimiento y el rendimiento de las Mipyme de los países de la Alianza del Pacífico (AP). Para ello se realizó un estudio empírico con una muestra de 386 empresas de Chile, Colombia, México y Perú. Para verificar las relaciones planteadas se utilizan regresiones lineales múltiples por mínimos cuadrados ordinarios (MCO). Los resultados muestran que la innovación en productos, en procesos y engestión impacta positivamente el crecimiento del empleo y las ventas, y así mismo a las utilidades. Estos resultados son especialmente relevantes para los países de la AP y pueden ayudar a los empresarios, a los gobiernos y a la academia para impulsar acciones que favorezcan la innovación de las empresas y su competitividad.

Authors: Domingo García-Pérez de Lema, Edgar Julián Gálvez-Albarracín and Gonzalo Maldonado-Guzmán
Spanish Title: Efecto de la innovación en el crecimiento y el desempeño de las Mipymes de la Alianza del Pacífico. Un estudio empírico
Full document:2016, García et al, Efecto de la Innovación en el Crecimiento y el Desempeño de las Mipymes de la Alianza del Pacífico- Un Estudio Empírico

Abstract:
The aim of this thesis has been to provide “Pacific Alliance” of Latin America with a bundle of recommendations to make a successful economic integration with “Asian Pacific” region. It seems that following the Comparative Advantage theory developed by David Ricardo (1772-1823), under the incipient technological progress has damaged some developing economies, to such an extent that their specialization on exploiting and exporting raw materials are condemned them to live in a vicious circle. This is a compelling situation between getting high rents from natural resource exports, low investment in Research & Development to innovation, reaching also poor Human Development Indexes (“The Curse of Natural Resources”). On the other hand, there is a virtuous circle between manufacture exports by developing high-tech industries, high investment in Research & Development to innovate, reaching also high Human Development Indexes; such as Asian Tigers in the last decades (“Learning by Exporting”).

These two central hypotheses have been testing under cross section econometric assessment, including more than one hundred countries for the three last decades (1981-2010). There are evidences to fulfilling both. The exports of Ores and Metals and other raw material oriented goods have negative impacts, while manufacture exports positive impact on the economic growth. Similarly, service exports have led the economic growth in the last decades due to Technology & Communication and International Commercial activities are increasing faster. They are significant and robust explanatory variables. Therefore, governments from raw material export oriented countries, like “Pacific Alliance”, should take into account Pragmatic Innovation Agenda and Technology Policies to get better sustainable living conditions. Otherwise, they will still suffering from the volatility of commodities demand and prices, low Research & Development investment, poor Human Development Index and social
conflicts.

Author: Hernán Ricardo Briceño
Full document: 2013, Briceno, Industry Oriented Asian Tigers and the Natural Resource based Pacific Alliance Economic Growth Models