The Center for Metropolitan Studies (CEM) Maintains that “if Uruguay manages to reduce the barriers and costs for the innovation industry by only 15%” the exports in that sector US$ 675 million could grow and 7 thousand new jobs could be created, based on studies by the Inter-American Development Bank (IDB)
At the Center’s Innovation Pole event, held this Tuesday, Laura Raffo, an economist who heads the organization and president of the National Party Department in Montevideo, said that “Uruguay can become a pole of innovation with the metropolitan area as its epicenter” Yes “barriers are broken down and policies are concentrated” to develop sectors such as “information technology, life sciences and creative industries”.
The report presented by the Center concludes that “Uruguay experienced a favorable position during the pandemic to attract Foreign Direct Investment (FDI) and talent that it has to consolidate for the future”, in a context in which Montevideo “He was a clear protagonist as a vector of attraction” and “has enormous potential to to be a promoter of the next stage”.
From the CEM they highlighted that in 2021 the export of “non-traditional services” (including the services of the innovation industry) accounted for 79% of services exports in Uruguay that year, and 11% of total exports. In addition, this industry sector employs 27 thousand people.
“It is essential that we promote state policies that allow Uruguay to make a qualitative leap and generate more opportunities for all”declared Raffo, who understands that Uruguay must “look beyond partisan politics” and “think about the country’s long-term future.”
The strengths and weaknesses
The Center’s study indicates that “Uruguay has a very good reputation for attracting foreign investment”due to its good rankings in vectors such as the “full democracy, low corruption, civil liberties, respect for the law, social mobility, and development of electronic government”Besides the quality of life and the environmental development.
They also highlight that in the pandemic the rest of the continent “experienced a 45% decline in FDI flows (foreign direct investment)”, in Uruguay that investment grew “by 43%”, that “were concentrated in the sectors of information, communications and technology.
However, the CEM indicates that Uruguay struggles to “grow at significant rates”because “low factor productivity, low investment in research and development, and limited educational attainment.”
They also maintain that, although there are good indicators of quality of life, the idea of living in Montevideo “it is less attractive for young people between 20 and 40 years of age”strip in which “It is more difficult to retain or import talent due to the lack of motivation generated by the type of life that the city and the country propose”.
Uruguay “It’s not as appealing to younger or wealthier talent looking for an active social life.cities with proposals gastronomic, cultural, extensive sports“, details the Study Center.
However, the study states that “Montevideo has a great opportunity to promote itself as a destination for talent through a strong value proposition for its quality of life”. The organization maintains that the capital can “retain the young talent of the country that is so much in demand by companies”, while at the same time promoting “Your Qualified Immigration Attraction Status.”
