Comments and opportunities

The generation and effective use of knowledge in organisations is an increasingly important factor in efficiency and competitiveness. However, the mere existence of knowledge does not guarantee innovation, considered as an interactive process. Innovation, at a more general level, is a process that evolves according to the quality of the interactions and links between the suppliers and demanders of goods and services, as well as of the knowledge and technologies that allow the benefits of the participants to be maximised.

For this reason, it is necessary to recognize the knowledge dispersed between and within organizations, synthesize it and incorporate it into key activities to promote a continuous process of innovation. In this context, there is a need to combine explicit knowledge (formal), tacit knowledge (know-how) and competitive intelligence to increase the speed of producing changes in knowledge structures and the quantity of effective responses that are given in time and quality to the demands of the environment.

In order for there to be an appropriation of knowledge by society and to improve the innovative efficiency of a country, it is necessary to determine how intense and extensive the relations between the sectors are, all of which are elements of a collective system for the creation and use of knowledge. In addition, this appropriation depends on the existence of a culture of innovation among its population, particularly at the levels of discussion and the way in which the available resources are managed and organised, both at the state level and in companies and organisations. The formation of innovation systems can enable a social group with limited resources to make rapid progress through an appropriate combination of domestic and imported technology with local generation, adaptation and improvement.

Numerous studies show that social cohesion is a critical factor for societies to prosper economically and for development to be sustainable. Social capital is not only the sum of the institutions that make up a society, it is also the stuff that holds them together. Social capital facilitates coordination and cooperation, shapes the social structure and enables the development of norms. On the other hand, economic and social development flourishes when representatives of the state, the business sector and civil society create spaces through which they can identify and achieve common goals.

The practical implications for development projects stem from thinking in terms of social capital. Some of these are a consequence of experience on the ground. However, interpreting these results from a social capital perspective can ensure that some lessons learned are circulated more quickly and are supported by a broader support base.

Another very strong trend in the studies carried out on this subject shows that the incorporation of users and beneficiaries in the design and implementation of development projects helps not only to produce more appropriate projects but also ensures that these projects are better focused to benefit those who have greater needs. Involving the user from the beginning helps to build more trust and legitimacy for the project.

The application of innovation is a necessity for all strata of society and should be aimed at improving the social and economic conditions of the population. In society there are different actors, apart from the state and companies, which are the driving forces behind the creation and absorption of knowledge by society as a whole and which incorporate innovation in their management, processes and products.

Essentially, the idea of the innovation system considers that the capacity that society as a whole must develop in order to appropriate knowledge is more than a simple sum of the activities of the different sectors, it corresponds to the result of the synergy that comes from the interactions of the different actors.

This is why the management of knowledge and technologies in all their forms is seen as indispensable, in order to promote competitiveness through the use of innovation, the strengthening of the industrial and social fabric and the consensus of socially responsible entrepreneurs. In this way, the benefits of the participants are maximised, including public and private institutions of a business, social or political nature.

The projects can use the social capital that exists between various actors to enhance it. In this sense, the projects and activities conceived under the methodology of sustainable alliances, known as innovation agenda methodology, highlight some important values: respect for others; tolerance towards the demands of others; commitment to agreements made jointly, which translates into, among other advantages, the legitimacy of the projects, programmes, activities and organisations related to this process.

Other characteristics that are rescued in these processes of consultation and partnership building are: the co-responsibility, the search for equity, critical cooperation with the state, the dialogue of knowledge, the protagonism of users - beneficiaries of the processes, the culture of accountability, monitoring and periodic evaluation of results and products and the enabling nature of the external agent.

For the Andean Development Corporation, as a pioneering organisation in the promotion of competitiveness, this type of activity, which was carried out in Panama in January 2004, represents an opportunity to sponsor consultancy services related to the construction of competitive advantages in the member countries, which would be implemented from the Andean Competitiveness Programme (PAC).

This CAF initiative would promote competitiveness, dialogue between the different actors and maximise the contribution of the CAF in achieving improvements in productivity that would translate into higher rates of economic growth.