65. Analysis of the Economic Determinants of the Investment Deficit in Research and Development in Panama

• Contracting Organization: National Secretariat of Science and Technology (SENACYT)

• Start Date: October 2018

• End Date: February 2019

To analyze the relationship between the structure economy and the deficit in investment in science, technology and innovation in Panama.

Methodology and activities performed
Relevant advances in the available specialized bibliography provided by SENACYT related to the objectives of the consultancy were reviewed, and the data necessary to achieve the objectives of the consultancy were obtained. Later, meetings were held with relevant stakeholders. In addition, the indicators for the last twenty years available in the data sources were calculated. An input-output analysis of the Panamanian economy was carried out for two relevant years, which included relevant economic activities for the objectives of the consultancy. The direct and total productive chains were calculated, forward and backward, and then the economic activities were classified according to the calculated productive chains. Subsequently, changes in technical production coefficients were identified and analyzed, as well as structural changes. An analysis of the classification of economic activities was carried out according to the calculated production chains, taking into account the characterization of the economic structure. In turn, the relationship between investment in R&D and the main macroeconomic aggregates in Panama and a list of developed and developing countries was analyzed in a comparative way. The relationship between investment in R&D and the structural and technological changes identified was also analyzed. Based on the methodology proposed by Maloney and Rodríguez-Clare (2010), the investment deficit in R&D in Panama was analyzed, taking into account the economic structure previously analyzed.

An ex ante analysis of the economic effect of closing the investment gap in R&D was carried out, by calculating a social accounting matrix or other pertinent methodology chosen in coordination with SENACYT.