Context
Latin America and the Caribbean (LAC) continue to face a persistent “productivity trap,” where sustainable economic growth is constrained by a productive structure that remains distant from the international technological frontier. The region’s labour productivity has stagnated or declined over recent decades and remains at approximately one third of OECD average levels.
This gap reflects a productive structure concentrated in low-sophistication sectors, alongside the prevalence of informality that limits firm growth, innovation, and the diffusion of productivity gains across the economy. These structural characteristics hinder the creation of quality employment and reduce the scope for inclusive and sustained growth, underscoring the need for coordinated policies that support productive transformation, skills development, and formalization.
Innovation, digital transformation and Artificial Intelligence (AI) offer a unique opportunity to modernize production processes, improve access to essential services, and boost productivity while expanding opportunities for SMEs, youth and workers. By connecting technological adoption with inclusive policies and skills development, countries can ensure that the gains from innovation and AI contribute to social cohesion and economic dynamism across the region.
The Ministerial Summit on Inclusive Innovation and Artificial Intelligence Revolution provides a strategic platform to share good practices and promote action on the three thematic pillars: inclusive growth, innovation and technology transfer, and AI-enabled skills and productivity, supporting countries in translating strategic ambitions into concrete, inclusive outcomes.
Key Issues
1. Strengthening innovation systems and technology transfer to boost productivity
2. Making Artificial Intelligence for all: policies for inclusive growth
