Export Knowledge: The Age of Services in Latin America
Perspectives from Latin America and Europe
Authors: Bamber, Penny ; Fernandez-Stark, Karina ; Abras, Ana ; Campos, Camila ; Rocha, Bruno de Paula ; Caluz, Antonio Daniel ; Guitart, Violeta ; Rabosto, Andrés ; Segal, Nicolás ; Peláez, Sergio ; Ramos, María Priscila ; Romero, Carlos ; Covelli, María Paula ; Breitkopf, Martin ; Svarzman, Gustavo ; Rozemberg, Ricardo ; Basco, Ana Inés.
Executive Summary
This 48th edition of the journal presents six studies selected through a call for research proposals conducted jointly with the Interdisciplinary Institute of Political Economy of Buenos Aires (IIEP) at the Faculty of Economics of the University of Buenos Aires (UBA). Together, these contributions provide valuable insights for the region’s trade and investment policy agenda related to knowledge-intensive services (KIS), a highly dynamic segment of the global economy in which Latin America and the Caribbean have made significant progress and possess considerable untapped potential for future growth.
At the Institute for the Integration of Latin America and the Caribbean (INTAL), part of the Integration and Trade Sector (INT) of the Inter-American Development Bank (IDB), we are committed to fostering the development of knowledge-intensive services across the region. The publication of this issue is also part of our broader efforts to expand knowledge, data, and evidence on these sectors, which are of strategic importance to Latin American economies. We hope that this edition serves as a source of inspiration and reflection, contributing to the promotion of a productive, digital, sustainable, and inclusive transformation throughout our region.
The main findings are summarized below:
- Growth of Trade in Services: Unlike trade in goods, which has experienced a slowdown since the 2008 financial crisis, trade in services has maintained sustained growth, expanding at roughly twice the rate of goods trade. This dynamism is largely driven by advances in information and communication technologies (ICTs), which have increased the tradability of services and facilitated their internationalization.
- Strategic Potential of Knowledge-Intensive Services (KIS): Knowledge-intensive services—including software, R&D, consulting, audiovisual services, and engineering—stand out for their high productivity, innovation capacity, and ability to generate skilled employment. In emerging economies, their productivity can even exceed that of manufacturing industries. These sectors help diversify production structures and enhance the competitiveness of other industries through the provision of sophisticated services and knowledge transfer.
- Regional Competitive Advantages: Latin America and the Caribbean (LAC) benefits from several advantages, including a skilled workforce at relatively competitive costs, favorable time zones, and cultural affinity with major markets such as the United States. Countries such as Argentina, Brazil, Colombia, Uruguay, and Costa Rica have successfully positioned themselves as significant exporters of knowledge-intensive services, supported by the emergence of technology firms and digital “unicorns.”
- Persistent Inequalities and Gaps: Significant challenges remain, including gender disparities in sectors such as software and fintech—reflected in the low participation of women in programming roles and senior management positions—high levels of labor informality, and a mismatch between educational offerings and the skills demanded by the digital economy. In addition, service exports remain below their full potential.
- Public Policy Recommendations: The publication emphasizes the need for policies that strengthen human capital, improve digital infrastructure, reduce barriers to trade in services, foster stronger links between science and production, and promote innovation clusters. It also highlights the importance of incorporating gender equality and environmental sustainability as core pillars of this transformation.
- A Scaling Model for Natural Resource-Based Sectors: The Chilean case study proposes a three-stage model for developing knowledge-intensive services in extractive industries: (1) importing services, (2) building local capabilities, and (3) exporting knowledge-intensive services. While Chile has made significant progress in developing local service ecosystems in mining, aquaculture, and fruit production, exports of these services remain limited. The study recommends an active policy agenda to stimulate internationalization and facilitate movement up the value chain.
- The Cross-Cutting Role of Climate Change and Food Security: The publication highlights the contribution of knowledge-intensive services to promoting more sustainable, efficient, and resilient production processes, helping economies address global challenges such as climate change and food insecurity.