Strong investments are needed in order to do Research and Development that may lead to greater productivity and better products and services.

But, in Colombia, the annual expenditure in R+D is only 0.2% of the GDP, against 2.4%, which is the average of the OECD (Organization for Economic Cooperation and Development), a club of better practices of which Colombia will become a full member.

A recent report of this organization on the country, points out that Colombia’s R+D performance is weak due to low investment and insufficient articulation between the private sector and the academy.

“Colombian companies have little participation in innovation, as there are only a few manufacture firms that introduce new products. In the business world, only 30% of R+D is achieved, against the average 70% of the OECD countries”, says the report.

Conditions have not been degraded. There is a broad margin for the country to go up in this ranking.

For example, only 12% of services SMEs (small and medium enterprises) innovate in products and processes. This places Colombia in position no. 20 among the 28 countries analyzed by the OECD.

There is a clear gap between Colombia and Slovenia, where 27% of SMEs innovate in either products or processes.

Meanwhile, according to the report, only 8% of manufacture SMEs innovate and Colombia is number 25 among the 28 countries analyzed.

As regards large firms of the industrial sector, only 23% innovate, and the country is number 22. And, when it comes to large services companies, the level is 20%, and Colombia is number 27.

Colombia is in a very different situation than Finland, where 68% of large companies innovate in products or processes.

The outlook is no way better when analyzing industrial and services companies together, as only 2% of the Colombian firms introduce new products. This variable does not take into account the innovation factor and Colombia is in the last place of a 33 countries sample.

Though the organization acknowledges advances in the Colombian education system, it states that better innovation policies are needed, which must also generate capital based on knowledge and elevate business productivity and competiveness.

The OECD states that even though the government fosters strategies to promote R+D –such as volunteer pacts, which are established by companies as part of their business strategy- and initiatives through the Colciencias and the chambers of commerce, it must encourage a larger number of companies to do it.

In addition, it requests to reduce the cost for the application of patents and eliminate barriers for the use of public funds in R+D.

The organization also pointed out as a negative fact that, even though Colciencias started grating payment directly to the private sector, to strengthen its innovation capacity, what must be supported is the development of capacities among companies instead of specific projects.

As regards the relationship between the private sector and education and research institutions, it requests linking companies with institutions of scientific research and contribute to demonstrate the importance of research.