Technological knowledge diversifies Dominican exports
Technology enables developing economies to diversify their exports. This enables the development of knowledge-based services (KBS), which represent a productive transformation opportunity in Latin America and the Caribbean. The Dominican Republic has a “medium-high” dynamism, according to the Inter-American Development Bank (IDB), for the US$707.5 million exported in knowledge-based services in 2018. This accounts for only 1.5% of the region’s total exports, totaling US$46 billion. However, it ranks lower than Guatemala ($1 billion), Peru ($916.5 million), and Panama ($873 million), all of which are known for their dynamism.
According to the IDB report “Export knowledge: the era of services in Latin America,” these activities are distinguished by the use of high technology and necessitate skilled labor in technological innovations, owing primarily to the participation of information and communication technologies (ICT). According to the study, governments must improve digital infrastructure and integrate the productive and scientific-technological sectors to consolidate this new ecosystem of services. “The development of service clusters that promote synergies between businessmen, the public sector, and education to address the teaching of human capital in digitization will be beneficial for productive diversity in the face of the fourth industrial revolution,” he adds.
However, according to the IDB, one in every three businesses is unable to find workers with the necessary technological and digital skills. As a result, countries must implement public policies to close the labor supply-demand gap, linked to the economy’s technological future.