Caribbean falling behind in science and innovation investment

Oct 10, 2025 News

…ECLAC warns as region risks missing green growth boom

A new report by the Economic Commission for Latin America and the Caribbean (ECLAC) has sounded the alarm that Caribbean nations, including Guyana, are dangerously lagging in science, technology, and innovation (STI) — spending less than one percent of GDP on research and development compared to global leaders like the United States (3.6%) and China (2.6%).

ECLAC’s latest analysis points to what it calls a “critical gap” between the region’s ambitions for economic transformation and the weak investment, coordination, and policy design supporting STI. The report stresses that without a stronger innovation ecosystem, Latin America and the Caribbean risk being left behind in the global green and digital revolutions now driving economic competitiveness.

For countries like Guyana, which is experiencing one of the world’s fastest-growing economies due to its oil boom, ECLAC warns that long-term prosperity depends on investing beyond extractive sectors — particularly in research, clean energy technology, agriculture, and manufacturing innovation. “The impact of STI policies depends not only on greater resources, but also on the design, operation, and coherence of the strategies, institutions, and instruments involved,” the report said.

Currently, regional STI spending averages just 0.56% of GDP, a figure ECLAC describes as “alarmingly low” given the scale of the energy transition and the global shift toward digital economies. The Commission says Caribbean governments must increase financing, modernize policy frameworks, and build stronger university–industry partnerships to bridge the innovation divide. It also calls for stronger technical and political capacity within national STI agencies, more consistent evaluation and accountability, and a regional framework for cross-border collaboration on science and technology initiatives.

Clusters, Cooperation

ECLAC highlights cluster initiatives partnerships between businesses, universities, and governments as a powerful mechanism to stimulate productivity and innovation. The report identifies 712 active cluster and productive articulation initiatives across 20 countries in the region, most concentrated in agriculture, manufacturing, tourism, and ICT. However, ECLAC notes that such initiatives “do not occur spontaneously” and require deliberate policy design and long-term investment. It urges Caribbean nations to anchor cluster projects in national development strategies and to maintain policy continuity beyond political cycles.

$2.8 Trillion Needed

In one of its starkest warnings, ECLAC estimates that Latin America and the Caribbean will need between US$2.1 and US$2.8 trillion in cumulative investments by 2030 to meet climate goals while sustaining economic growth. The report describes this as both a challenge and an opportunity, one that could position the region as a global powerhouse in decarbonization and resilience. For Guyana, already positioning itself as a future green energy hub, ECLAC recommends embedding productive development policies (PDPs) into its climate commitments and ensuring that national investment priorities reflect this dual focus on sustainability and innovation. “Green and inclusive productive development policies represent a major opportunity for the region to establish itself as a global power in decarbonization and resilience,” ECLAC said, while urging urgent action to strengthen national capabilities for managing this transition.

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Caribbean, ECLAC, innovation investment, Science

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Caribbean falling behind in science and innovation investment