Brazil, Colombia, and Mexico are Undisputed Leaders of Innovation in LATAM
- Brazil, Colombia, and Mexico stand out as leaders in innovation in Latin America and the Caribbean. These countries are notable for their advancements in infrastructure, market diversification, and investment opportunities, making them fertile ground for the development of the commercial real estate market.
Innovation is a cornerstone of any country's economy, essential for sustaining competitiveness and fostering economic growth. In this context, the commercial real estate market is no exception, as innovation transforms how businesses operate and how they utilize and capitalize on commercial spaces.
SiiLA, the leader in intelligent solutions for the commercial real estate sector, closely monitors the Brazil, Colombia, and Mexico markets, where innovation has proven indispensable in driving investment and developing high-quality properties and top-notch infrastructure. In the past year alone, the inventory of industrial warehouses in these three countries has surged by 5% to 9%, depending on each specific case. In contrast, office space inventory has shown growth of 1% to 2%.
Recently, Brazil, Colombia, and Mexico once again secured their positions among the top five innovative countries in Latin America and the Caribbean, according to the World Intellectual Property Organization's (WIPO) Global Innovation Index (GII) 2023.
Brazil has claimed the top regional spot for the first time in the GII, ranking 49th globally. Mexico secured the second regional spot and 58th globally, with Colombia taking the fifth regional spot and 66th globally.
In these nations, innovation is driven by various factors, some shared and others unique.
Mexico
According to the GII, Mexico has maintained its global position for the second consecutive year after falling to 55th in 2021. Among Mexico's strengths, WIPO highlights innovation in infrastructure, particularly the growing access and use of Information and Communication Technologies (ICT), electronic participation, online government services, and logistical and environmental performance.
Furthermore, Mexico stands out for its domestic market's sophistication, especially in business financing, investments, and industry diversification, and its institutional innovation, largely thanks to the operational stability of companies, regulatory quality, and entrepreneurial policies and culture. Mexico also boasts high-quality human capital, particularly in research and development, investment, and university performance.
Brazil
According to the GII, Brazil continues to outperform expectations for its level of development. This includes significant advancements in innovation and technology utilization, including e-commerce, and in the valuation of its companies. Notably, the country now counts 16 unicorn companies, representing 1.9% of its GDP in 2023.
Brazil's innovation shines through its infrastructure, especially in government services, online participation, logistical and environmental performance, and market sophistication, focusing on private sector credit, market diversification, and capitalization of emerging enterprises, such as startups and scaleups. Business sophistication is also a standout, with the development of technological and business hubs, investment in experimental research and development, and collaboration between companies and universities in research and development.
Colombia
While Colombia dropped three places in the GII rankings over the past year, WIPO recognizes that science, technology, and innovation have become essential drivers for creating a more sustainable, inclusive, and transparent economy, even accelerating the country’s energy transition.
According to the GII, innovation in Colombia is primarily propelled by the quality of its institutions, stemming from the operational stability of its companies and entrepreneurial regulations and policies.
This South American nation's strengths also include infrastructure, particularly ICT access and usage, online government services, electronic participation, and environmental performance; business sophistication, especially regarding worker training, investment in company research and development, as well as collaboration between private companies and universities; and market sophistication, particularly in terms of diversification of companies and business niches, loans to private companies and market capitalization.
For more information on this and other commercial real estate market topics, visit REsource or contact us at prteam@siila.com.
