Mission-oriented Policies Research Articles

Do early adopters raise barriers to the commercial take-up of strategic high-technology products?

ABSTRACT The objective of this research is to investigate whether the behaviors and preferences of early adopters can potentially hinder the widespread proliferation of strategic high-technology industrial products. Through an extensive analysis of data collected from 1285 communication satellites, our findings reveal a significant pattern: when early adopters demonstrate a high demand for product diversity and elevated levels of innovation, this tends to delay the diffusion of these technologies to the mainstream commercial adopters. Early adopters undeniably play a pivotal role in directing the development pathways of strategic industries; however, their insistence on high innovation and diversity creates technological barriers. These barriers, in turn, slow down the mass adoption by commercial entities, which rely on more stable and universally accepted technologies. Our research enriches the existing body of diffusion literature by offering a fresh perspective, focusing on the dynamics of adopter orientation as opposed to the traditional producer-centric view. The results from our study highlight the urgent need for the implementation of targeted policy interventions and strategies aimed at fostering more equitable and widespread diffusion processes. This would ensure that the benefits of innovation are more evenly distributed across a broader range of user segments. Moreover, our findings suggest that innovation policies need to address systemic failures within the innovation ecosystem, such as the lack of a dominant design which can further facilitate diffusion. This insight is particularly beneficial for policy-makers, providing them with critical information to determine the optimal timing for transitioning from mission-oriented policies that are aimed at establishing new markets, to product diffusion policies focused on rectifying market failures.

An mRNA technology transfer programme and economic sustainability in health care.

The World Health Organization (WHO) set up the messenger ribonucleic acid (mRNA) technology transfer programme in June 2021 with a development hub in South Africa and 15 partner vaccine producers in middle-income countries. The goal was to support the sustainable development of and access to life-saving vaccines for people in these countries as a means to enhance epidemic preparedness and global public health. This initiative aims to build resilience and strengthen local vaccine research, and development and manufacturing capacity in different regions of the world, especially those areas that could not access coronavirus disease 2019 (COVID-19) vaccines in a timely way. This paper outlines the current global vaccine market and summarizes the findings of a case study on the mRNA technology transfer programme conducted from November 2022 to May 2023. The study was guided by the vision of the WHO Council on the Economics of Health for All to build an economy for health using its four work streams of value, finance, innovation and capacity. Based on the findings of the study, we offer a mission-oriented policy framework to support the mRNA technology transfer programme as a pilot for transformative change towards an ecosystem for health innovation for the common good. Parts of this vision have already been incorporated into the governance of the mRNA technology transfer programme, while other aspects, especially the common good approach, still need to be applied to achieve the goals of the programme.

Mission-oriented scenarios: a new method for urban foresight

PurposeThe purpose of this study is to propose an innovative and efficient process in urban policy-making that combines a divergent and creative method with a convergent and strategic one. At the same time, the purpose is also to propose a useful innovation to enforce the usability of both methods. On the one hand, mission-oriented policies run the risk of being overly focused on the present and of not being able to develop preparedness in organization. On the other hand, scenario development has the reverse problem it often does not point out how to use scenario narratives to inform and devise short-term strategic actions.Design/methodology/approachThe paper proposes an innovative methodological approach, the mission-oriented scenarios, which hybridizes Mazzucato's mission-oriented public policy framework with Jim Dator's Manoa school four futures method. The proposed methodological innovation emerges from a urban foresight academic-led project carried out in the context of the Metropolitan City of Turin, Italy, where a first application of the mission-oriented scenarios was tested on six different focal issues (from reindustrialization to cultural policies) and the scenario narratives were used as sources for the grounding of 12 missions and 48 strategic actions towards 2030.FindingsMission-oriented scenarios can contribute to the generation of more sustainable and inclusive urban public policies. This methodological proposal is based on an original mix of knowledge exchange procedures borrowed from methodological approaches with different backgrounds: the mission-oriented and the archetypal scenarios. Their conjunction could support the formulation of ambitious yet pragmatic policies, giving a plurality of actors the opportunity to act and establish fruitful and lasting partnerships.Originality/valueThe paper reconstructs one of the first urban foresight projects carried out in a major Italian city by two prestigious universities and exposes a methodological innovation resulting from reflection on the strengths and weaknesses of the project, which opens the door to the development of a new scenario technique.

Heterogeneity of inter-organizational collaborations in agrifood chain sustainability-oriented innovations

CONTEXTSustainability-Oriented Innovation (SOI) is recognized as a way to address agrifood system sustainability challenges. Because of its complexity, SOI requires inter-organizational collaboration between actors within and around value chains. Since farming practices account for a large part of the environmental impact of food products, farmer involvement in SOI processes is key. However, there is a lack of evidence on the degree of farmer engagement in inter-organizational collaboration, as well as the diversity of partners involved. Moreover, our understanding of the heterogeneity of collaboration in relation to the sustainability dimensions of the innovation SOI processes is limited. OBJECTIVEThe objectives of our research are twofold. First, to propose a novel conceptualization of SOI, converging the sustainability specificities of the innovation process and the characteristics of the collaboration supporting the innovation process. Second, to unpack heterogeneous forms of collaboration in SOI with attention to farmer engagement in these forms. METHODSWe developed the SOI framework and analyzed SOI processes in the fruit and vegetable sector across Europe. A multiple correspondence statistical analysis was carried out based on data from more than one hundred value chains that have implemented a SOI process. A hierarchical clustering analysis was performed to reveal patterns of collaboration in SOI. RESULTS AND CONCLUSIONSThe results show different patterns of collaborative SOI in European fruit and vegetable chains. The SOI differ as regards to three specific dimensions: the diversity, the direction, and the distribution; and they rely on various collaboration forms. Seven clusters are analyzed and discussed, with specific attention to the farmer engagement in the collaboration forms. We differentiated between 1) Intermediary-led farm & food innovation with farmer collaboration; 2) Intermediary-led short food supply chain innovation with farmer collaboration; 3) Processor-led green food product innovation without farmer collaboration; 4) Farmer-led sustainable agricultural practices innovation with a collaborative network; 5) Farmer-led coupled innovation with downstream integration; 6) value chain actor-led coupled innovation with farmer collaboration; 7) Retailer-led distribution innovation without farmer collaboration. The relationship between diverse collaboration forms and SOI dimensions is discussed. SIGNIFICANCERevealing the heterogeneity of collaboration forms in SOI processes is important for developing sound policies. Given the significant role of farmers in sustainable agrifood system transitions, this paper reveals various levels of farmer engagement in collaborative SOI processes in value chains. Results have implications for mission-oriented policies since they allow a more precise and targeted approach to agrifood chains within the broader agrifood system transformation.

Kebijakan Berorientasi Misi untuk Mempromosikan Teknologi Digital dalam Mengatasi Ketimpangan Pendidikan dan Mendorong Pembangunan Inklusif di Brasil

The COVID-19 pandemic's consequences have increased inequality and poverty around the world, making it harder to meet the Sustainable Development Goals. One of the main issues is the lack of education experienced by those who are mostly socioeconomically disadvantaged. Due to the technology gap, many underprivileged kids were left behind during the lockdown and school closure since access to the digital tools and infrastructure required to provide continuity of learning remotely was adopted and accessed unequally. For example, 5.5 million children and teenagers in Brazil didn't have access to education in 2020. The present and future of a generation, their families, and the economic and productive capacity of the entire society are all impacted by such a loss, which enlarges the educational gap that already existed in the nation. This situation demonstrates the necessity for governments to prioritise strong measures to close the digital gap in addition to reopening schools. These policies can encourage learning and inclusion of children and adolescents in the information age, which is influencing new methods of learning, working, and living. As a result, this article analyses the digital education gap in Brazil's context and offers suggestions to the ministry of education. The goal is to direct the creation of well-structured policies to make use of technological opportunities to develop the fundamental educational system. The ideas are based on mission-focused and frame 3 innovation strategies, with a particular emphasis on bolstering digital inclusion in basic education, which is essential to advancing social justice and the SDGs. Keywords: Mission-Oriented Policy, Digital Technology, Educational Inequality, Inclusive Development

From global climate goals to local practice—mission-oriented policy enactment in three Swedish regions

Abstract As the national and supranational levels of government embrace the concept of missions to solve wicked problems, the importance of understanding how missions move from one level of governance to another becomes essential. In this paper, we present a comparative case analysis of evolving regional biogas systems to consider how global missions on climate action are enacted in local practice. Referring to wickedness in terms of contestation, complexity, and uncertainty of both problems and solutions, we examine how such framings affect the operationalisation of the missions. Our results indicate that in the process of local translation, wickedness often increases, but additional wickedness does not always worsen the outcomes.

Mission-oriented policies and the “Entrepreneurial State” at work: An agent-based exploration

We study the impact of alternative innovation policies on the short- and long-run performance of the economy, as well as on public finances, extending the Schumpeter meeting Keynes agent-based model (Dosi et al., 2010). In particular, we consider market-based innovation policies such as R&D subsidies to firms, tax discount on investment, and direct policies akin to the “Entrepreneurial State” (Mazzucato, 2013), involving the creation of public research-oriented firms diffusing technologies along specific trajectories, and funding a Public Research Lab conducting basic research to achieve radical innovations that enlarge the technological opportunities of the economy. Simulation results show that all policies improve productivity and GDP growth, but the best outcomes are achieved by active discretionary State policies, which are also able to crowd-in private investment and have positive hysteresis effects on growth dynamics. For the same size of public resources allocated to market-based interventions, “Mission” innovation policies deliver significantly better aggregate performance if the government is patient enough and willing to bear the intrinsic risks related to innovative activities.

How can entrepreneurs experience inform responsible health innovation policies? A longitudinal case study in Canada and Brazil.

To foster equity and make health systems economically and environmentally more sustainable, Responsible Innovation in Health (RIH) calls for policy changes advocated by mission-oriented innovation policies. These policies focus, however, on instruments to foster the supply of innovations and neglect health policies that affect their uptake. Our study's aim is to inform policies that can support RIH by gaining insights into RIH-oriented entrepreneurs' experience with the policies that influence both the supply of, and the demand for their innovations. We recruited 16 for-profit and not-for-profit organisations engaged in the production of RIH in Brazil and Canada in a longitudinal multiple case study. Our dataset includes three rounds of interviews (n=48), self-reported data, and fieldnotes. We performed qualitative thematic analyses to identify across-cases patterns. RIH-oriented entrepreneurs interact with supply side policies that support technology-led solutions because of their economic potential but that are misaligned with societal challenge-led solutions. They navigate demand side policies where market approval and physician incentives largely condition the uptake of technology-led solutions and where emerging policies bring some support to societal challenge-led solutions. Academic intermediaries that bridge supply and demand side policies may facilitate RIH, but our findings point to an overall lack of policy directionality that limits RIH. As mission-oriented innovation policies aim to steer innovation towards the tackling of societal challenges, they call for a major shift in the public sector's role. A comprehensive mission-oriented policy approach to RIH requires policy instruments that can align, orchestrate, and reconcile health priorities with a renewed understanding of innovation-led economic development.

Experience of developing a mission-oriented STI for SDGS roadmap in Ukraine

The subject of the study: mission-oriented policy in the field of science, technology and innovation, to achieve the SDGs in Ukraine. Purpose: defining the STI policy missions (priority directions) to respond to societal challenges and SDGs; developing the roadmaps for STI policy missions as a tool ensuring their coordination with strategic documents’ measures regarding the SDGs achieving. Methods: policy analysis, foresight research, statistical and scientific-metric analysis, business and information analytics. Results of the work: The objectives of six policy missions in the STI field were determined based on the foresight study, analysis of challenges, scientific and technological potential and stakeholder consultations. For the first time, six STI for SDGs roadmaps were developed for six concrete missions according to a single structure, which includes the situation and trends analysis in the relative sectors, scientific and technological and entrepreneurial potential, the key strategic documents’ measures for the SDGs implementation. The road map content has been agreed with 17 interested authorities. A comprehensive STI for SDGs roadmap has been developed as a toolkit for coordinating regulatory, organizational and financial measures regarding SDGs in Ukrainian strategic documents with the STI policy tools. The research results are the basis for determining the priority directions for the development of science and innovative activities for 2023, approved by the resolutions of the Cabinet of Ministers of Ukraine No. 283 of March 30, 2023 and No. 463 of May 9, 2023. Scope of application of the results: legal regulation in the STI field, transformational innovation policy. Conclusions. Defining the tasks of six policy missions in the field of STI to respond to national challenges and SDGs allowed for a more thorough analysis of the problems and risks of not achieving the SDGs and their relations with the strategic policy planning in the relevant sectors. The mission-oriented STI for SDGs road map becomes a more effective tool for coordinating the priority directions (missions) of the STI policy with measures for their implementation in strategic development documents. Further research will be aimed at strengthening the roadmap’ coordinating role during the implementation of STI policy measures and tools in the sectors of the national economy, as well as developing the appropriate indicators for monitoring and evaluating the progress in the STI for SDGs roadmap implementation.

Designing the Qualitative Model of the Mission-oriented Innovation System (MIS) in Order to Complete the Value Chain of Iron and Steel Industries in Ghadir International Mining and Industries Development Company

The purpose of this research is to design a qualitative model of the mission-oriented innovation system in order to complete the value chain of Ghadir iron and steel industries. the target population of the current research, included managers of Ghadir International Industries and Mines Development Company and its subsidiary companies and university professors who have conducted researches in the field of innovation system. The statistical sample selection method was the snowball sampling method. For this reason, 15 experts were selected until reaching saturation by snowball sampling method. In this research, unstructured open interview method was used to collect data and information for analysis. This research was conducted qualitatively using the data-based technique with the approach of Strauss and Corbin (1998) and with the help of Max Kyoda software. The findings of the research indicated that the causal factors of mission-oriented innovation include the systematic indicators of the mission-oriented innovation system, the characteristics of missions; The core category includes mission-oriented innovation process; Mission-oriented innovation platforms include creating mission-oriented innovation opportunities, developing steel industry infrastructure, necessary platforms for group learning; Intervening factors of mission-oriented innovation include weak planning and formulation of policies, technological barriers, research challenges; Mission-oriented innovation strategies include cultivating human resources, formulating mission-oriented policies, promoting technological policies, developing the innovation ecosystem; The consequences of mission-oriented innovation include the development and improvement of production processes, reduction of environmental effects, capital-oriented growth, transformation in the entire value chain.

The Economics of Incomplete Plan -on Conditions, Procedures and Design of Future Mission- Oriented Innovation Policies

The buzzword in industrial policy and innovation policy circles is mission-oriented innovation policy (MOIP) –which means a policy to encourage innovation intended to accomplish a certain mission– whether it be a societal challenge (climate change, global health) or an industrial policy issue (sectoral transition or modernisation, establishment of a new industry). This new category results from what seems a priori to be just a simple qualifying extension of mission-oriented policies (MOPs) –very much in vogue in the 70’s and 80’s and used particularly in sectors like space and defence. However, this ‘simple’ qualifying extension does in fact cause a significant discontinuity that merits reflection. While a mission imposes a discipline and centralised priorities and decisions, innovation on the other hand can’t be planned. Innovation is so uncertain that no plan will ever enable it to be tamed. There is thus a tension between mission and innovation, between a planning logic and a freedom to experiment logic. This tension implies thus advancing our knowledge about MOIP design, which is the goal of this paper.

Strengthening top–down design? Mapping science, technology and innovation policy developments in China in the age of COVID-19

ABSTRACT In the COVID-19 era, science, technology and innovation (STI) dynamics witness fundamental changes as the global expansion of government mission-oriented STI policies emphasises political stability, environmental sustainability and social inclusiveness. How does this global directionality affect China, a country known for its strong leadership in setting strategic STI policy directions? By performing a content analysis of 1,268 STI policies issued by the Chinese government before and after the pandemic started in 2020, we document the country’s latest attempts of top–down design of STI dynamics that use import and export barriers to restrict the flows of STI activities while crack down on the country’s effervescent STI scene to control what Chinese enterprises see and do, at both the national and local government levels. This increasing protectionist and interventionist tendency is a legacy of the U.S.-China trade war era when China was forced to ensure that its domestic technological progress could continue independently of the global market. However, to achieve such independence, we suggest that the country needs to restructure its demand-side, supply-side and environmental-side STI policy instruments to create a more efficient market space for techno-entrepreneurship, as it is hard to shore up political control without damping bottom–up entrepreneurial vigour.

Toward interregional innovation systems in PeruHacia los sistemas de innovación interregional en el PerúPara sistemas inter-regionais de inovação no Peru

ObjetivoA colaboração baseada no conhecimento entre atores de regiões transfronteiriças poderia ajudar a conceber um melhor processo de regionalização no Peru. Os resultados de um apoio financeiro governamental à inovação dão provas de uma concepção política orientada para a missão de sistemas de inovação inter-regionais.Concepção/metodologia/abordagemSistemas de inovação, análise de redes sociais e políticas orientadas para missões contribuem para analisar as ligações entre territórios subnacionais fronteiriços e para construir estratégias para sistemas de inovação inter-regionais.ConclusõesCinco das 18 interações regionais possíveis são suficientemente fortes para serem consideradas sistemas de inovação inter-regionais. Assim, as políticas orientadas para a missão podem ser concebidas para reforçar os laços entre regiões.Limites da investigaçãoUma vez que a quantidade de dados observada não é suficientemente grande, este estudo e os seus resultados devem ser considerados como um exercício exploratório.OriginalidadeA concepção de políticas de inovação com base no contexto peruano e nas provas abre oportunidades para repensar os processos de regionalização no país.

Assessing the relationship among waste generation, wealth, and GHG emissions in Switzerland: Some policy proposals for the optimization of the municipal solid waste in a circular economy perspective

This study aims to investigate the nexus among waste generation, economic growth, and greenhouse gas (GHG) emissions in a circular economy framework for the case of Switzerland. Using two different empirical approaches (Dynamic Auto-Regressive Distributed Lags and Fuzzy Cognitive Maps), time-series results show that municipal waste and economic growth have both a short- and a long-run impact on GHG emissions. Moreover, causality analyses evidence the presence of a unidirectional causal flow running from municipal waste and economic growth to greenhouse gas emissions, while a bidirectional causality between municipal waste and economic growth. The results of the static analysis of the municipal solid waste cognitive map show that the most significant system variables relate to the domains of “policy drivers” (education and awareness campaigns and extended producer responsibility) and “environment and health” (GHG emissions). Findings of the policy scenario simulations reveal that the most effective drivers are those about the mission-oriented policy approach.

The historical evolution of the Brazilian aeronautical sector: a combined approach based on mission-oriented innovation policy (MOIP) and sectoral innovation system (SIS)

ABSTRACT This study aims to present the evolution of the Brazilian aeronautical industry, focusing on mission-oriented innovation policy (MOIP) and sectoral innovation system (SIS) theories. We argue that a consolidated arrangement in national boundaries was useful to improve a leading national firm to compete at the international level. This was achieved through changes in MOIP over time, from a Type-1 strategy for a heterogeneous one, combining Type-1 and Type-2 features (Robinson, D. K. R., and M. Mazzucato. 2019. “The evolution of mission-oriented policies: Exploring changing market creating policies in the US and European space sector.” Research Policy 48: 936–948). We identify three main periods of industrial evolution from the 1930s until now. As main conclusions, we highlight that the joint observation through MOIP and SIS theories is important to explain the evolution of the aeronautical sector in Brazil. As technological, market, and institutional conditions shift, government policies change, new results are achieved, and new goals are being established, in line with the MOIP theory. Hence, the need for evaluation and adjustment over time would be seen as a more general lesson from this study, and the role of government intervention emerges as a particular strategy for each nation-state. Moreover, these responses to particular strategies need to be coherent with industry preconditions (each country’s internal features) and industry discontinuities.

Climate Change, Security, and the Resource Nexus: Case Study of Northern Nigeria and Lake Chad

This paper analyses the impacts of climate change and its implications for human security for the regions of Northern Nigeria and Lake Chad. The introduction identifies a gap between evidence on global environmental change and interactions on the ground; it positions the scope for a deeper understanding of the climate–security–resource nexus in Northern Nigeria and Lake Chad and consequences for the implementation of SDGs (Sustainable Development Goals). The section on methods describes the nexus concept and justifies adopting it. As a result of analysing the region, the paper sheds light on the conflict pathways triggered by failures in land grazing policy, which is further evidenced by a short comparison with Northern Kenya. A potentially novel contribution is discussed in terms of scaling up collaboration and green markets for the future of Lake Chad, along with an integrated agricultural nexus policy, both of which are ambitious in the spirit of mission-oriented policies and delivering on the SDGs.

Post-COVID-19 policy responses to climate change: beyond capitalism?

ABSTRACT Commentators across the political spectrum have interpreted the social, political and economic consequences of the COVID-19 pandemic and invariably suggested that, along with climate change, the COVID-19 pandemic requires an interventionist policy response from government. In this paper, we interpret definitions of green growth as ‘mission-oriented approaches’ to the ‘twin crises’ of the COVID-19 pandemic and climate change, examining the changing role of the state in confronting environmental issues in an era of climate and health pandemic. Both events have had, and will continue to have, important implications for work and employment. Thus, we evaluate the impact of COVID-19 on climate change, asking: to what extent have mission-oriented policy responses to COVID-19 impacted climate change action? We then broadly examine the impact of COVID-19 on labour globally and more closely, the possible impacts of a range of policy response options for Australia, assessing their position on a theoretical spectrum of ‘ecological modernisation’ that points to further policy development that can push responses beyond capitalism.

Transformative innovation policy or how to escape peripheral policy paradox in European research peripheral countries

The research peripheral countries (RPCs) are faced with the need to provide transformative change for long term sustainable development with scarce research and development resources which rests upon strengthening science base and the transformative innovation policy focused on societal and environmental challenges. The European Commission's proposal of a new recovery instrument – the Next Generation EU, incorporating the Recovery and Resilience Facility as a key instrument - is focused on green, sustainable, and digital economies, paving the way for a shift from the standard science, technology, and innovation (STI) policy towards transformative innovation policies which foster innovation focused on systematic change and sustainable socio-technical systems.This research seeks to understand the ways in which STI policy can contribute to the economic resilience and sustainable development of research peripheral countries and how STI policies can respond to new innovation policy paradigms, avoiding Europeanisation of STI policies and, ultimately, a peripheral policy paradox. Overcoming of the periphery paradox in STI policies requires unorthodox policy solutions to avoid inefficient replication of policy measures from advanced countries which pertain to science – industry cooperation to foster high tech industries and frontier research.This research proposes a new STI policy approach, based on interactions and interdependencies between standard STI policies for fostering scientific research and science-industry cooperation through transformative innovation policies. This policy allows for an experimental approach to policy-making, finding a way to best suit the national socio-economic context for the gradual replacement of the established socio-technical regime towards sustainable transitions. The fourth component of the new STI policy approach is the concept of the mission-oriented policy, which draws on frontier knowledge and large investments. Both new policy paradigms are discussed in order to highlight the pros and cons of their application in RPCs with regards to research capacities, socio-economic regimes/landscapes, and societal challenges.

Counteracting the COVID-19 Crisis with Innovation Policy Tools: A Case Study of the EU’s Supranational Innovation Policy

Purpose: In June 2018, the European Union (“EU”) decided to use missions as tools of innovation policy in accordance with the market-shaping, mission-oriented innovation policy approach. It stemmed from the EU’s efforts to improve the efficiency of innovation policy when it comes to handling major social challenges. In the first quarter of 2020, the EU had to unexpectedly face another social challenge, the COVID-19 pandemic, and the economic and social crisis that followed. This article analyses the actions undertaken by the EU at the supranational level within its innovation policy in relation to the COVID-19 crisis. It also aims to assess the coherence of the EU’s interventions with the mission-oriented innovation policy approach implemented and promoted by the EU. Design/Methodology/Approach: The research is descriptive and analytical in nature. First, it covers a case study of the EU’s supranational innovation policy. Second, it searches, on a theoretical level, for the reasons of discrepancies between the market-shaping and mission-oriented policy approach promoted by the EU and the interventions that the EU in fact conducts in relation to the COVID-19 crisis. Findings: The results of the research point to certain incoherence in the EU’s innovation policy when tackling major policy platforms. On one hand, the EU implements and promotes a mission-oriented policy as a more efficient way of solving major social challenges. On the other hand, its actions (and plans) hardly consider the application of an innovation policy mission as a means for fighting the most recent and crucial challenge, namely the COVID-19 crisis. Originality/Value: This is the first study to point out the incoherence that currently characterise the EU’s innovation policy on the supranational level.

Challenges for Innovation and Sustainable Development in Latin America: The Significance of Institutions and Human Capital

Sustainable development is considered as one of the vital challenges of the 21st century for humanity. The COVID-19 pandemic has disrupted economic and social life, forcing governments and businesses to reconsider their priorities. There are rare empirical studies on the national innovation system and its relationship to sustainability development for emerging countries. This paper aims at shedding light on how mission-oriented policies have marked sustainable regional development and innovation in Latin America. The present study presents the capabilities that could support the improvement of the national innovation system and, as a consequence, sustainability development. To understand how Latin American countries act on innovation and sustainable development initiatives, two global rankings in these areas, The Global Innovation Index 2020 and The Sustainable Development Report 2020, were analyzed. The results indicate some obstacles must be overcome such as the high levels of social inequality and poverty that still constitute significant challenges for this region. Today’s biggest challenges are facing a pandemic situation and guaranteeing economic development that allows the underprivileged to escape poverty without dooming future generations to an even more degraded environment than the current one. Innovation continues to play a critical role in the transition toward a more sustainable world.