Innovation and R&D in Latin America and the Caribbean countries: a systematic literature review

After the groundbreaking works of Joseph Schumpeter, a burgeoning literature related to innovations emerged. As works in this tradition have progressed, the innovation literature has recognized that the keystone to stimulate innovation across all economies relies on Research and Development (R&D) activities. As well occur in all modern economies, innovation and R&D have drawn the attention of the academic literature and governments in Latin America and the Caribbean countries (LAC). However, the process of innovation and R&D investments in LAC have different signatures, which may result in a complex and fragmented literature. As a novelty, this research explains how innovation and R&D are fundamental in modern times and brings new systematic literature review of the state-of the-art in innovation and R&D in manufacturing industries across LAC. The results suggests that the LAC has great challenges and opportunities. The review demonstrates that after decades of investment, innovation and R&D gains prominence and firms invest more on these activities. However, the development and investment in these activities, especially considering the government support and firm cooperation are frustrating when compared to OECD countries and Asian Tigers' economies, and yet much remains to be done by the governments.