Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 06SANTIAGO2411, CHILE KNOWS IT NEEDS MORE INNOVATION

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06SANTIAGO2411.
Reference ID Created Released Classification Origin
06SANTIAGO2411 2006-11-21 16:41 2011-08-25 00:00 UNCLASSIFIED Embassy Santiago
VZCZCXYZ0015
PP RUEHWEB

DE RUEHSG #2411/01 3251641
ZNR UUUUU ZZH
P 211641Z NOV 06
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC PRIORITY 0414
INFO RUEHBO/AMEMBASSY BOGOTA PRIORITY 1579
RUEHBR/AMEMBASSY BRASILIA PRIORITY 3397
RUEHBU/AMEMBASSY BUENOS AIRES PRIORITY 3320
RUEHCV/AMEMBASSY CARACAS PRIORITY 1183
RUEHLP/AMEMBASSY LA PAZ NOV 4907
RUEHPE/AMEMBASSY LIMA PRIORITY 4817
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
UNCLAS SANTIAGO 002411 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN PGOV KIPR EIND ETRD CI
SUBJECT: CHILE KNOWS IT NEEDS MORE INNOVATION 
 
1. SUMMARY.  Despite President Bachelet's declaration that 
innovation would be one of the pillars of her administration, 
budgets for research and development remain precariously low 
in Chile -- only seven tenths of one percent of GDP.  A 
ministerial commission tasked with identifying innovative 
sectors and ways to promote them has drafted legislation for 
tax breaks it hopes will increase private sector spending on 
innovation and bring new technology to Chile.  END SUMMARY. 
 
2. Soon after taking office in March, President Bachelet set 
up the Council on Competitiveness and Innovation to seek 
concrete ways to identify and incentivize knowledge-based 
sectors of the economy.  Chile's export-oriented economy 
remains dependent on primary products -- copper alone 
represented nearly 50 percent of the value of Chile's exports 
in 2005.  There is very little value added in Chile's economy 
and this presidential council was tasked with finding ways to 
change that.  It is composed of representatives from five 
ministries -- Finance, Economy, Education, Agriculture and 
Public Works -- and is headed by former Finance Minister 
Nicolas Eyzaguirre. 
 
3. Talk of innovation is new for Chile, it began with 
Bachelet.  She has asked the Council on Competitiveness to 
recommend nine sectors and industries (e.g. biotech), which 
the GOC will seek to foster.  Also to that end, the Council 
has drafted legislation to encourage greater private sector 
spending on research and development.  Currently, there is 
almost no private sector spending on innovation.  Part of 
that may be due to Chile's poor track record on protecting 
intellectual property rights (IPR).  GOC officials say they 
appreciate the interplay between protecting IPR and promoting 
innovation.  Some at least are aware that a lack of a clear 
GOC policy on IPR protection could be a hindrance.  A member 
of the Council told Senior EconOff he had been unaware of 
U.S. and EU concerns over IPR protection in Chile.  He agreed 
the GOC lacked a clear policy and said he would seek to have 
the Council discuss it. 
 
4. The Ministry of Finance has the lead in drafting tax 
legislation and recently presented two proposals to 
congressional committees.  The first is a tax reform intended 
to incentivize research.  Through a 35 percent tax credit and 
then a 65 percent deduction allowed against the corporate tax 
rate, the GOC would pick up the tab for about 50 percent of a 
private company's spending on research and development. 
Currently, there is virtually no tax incentive for spending 
on research.  The second draft would set the 
import/withholding tax on software at a uniform 15 percent. 
A number of taxes are applied against imported software now, 
with the total hit ranging up to an added 35 percent in 
costs.  The net result has been reluctance on the part of 
Chilean companies to buy the tailored software they need. 
 
5. Spending on innovation in Chile is abysmally low.  An 
advisor with the Ministry of Finance, who serves on the 
Council on Competitiveness and Innovation, told Senior 
EconOff that only seven tenths of one percent of Chile's GDP 
is spent on research and development.  Bachelet's goal is to 
raise that spending level to 1 percent of GDP by 2010.  Even 
at 1 percent, as Santiago's leading newspaper editorialized 
November 20, this level would lag far behind countries such 
as Ireland, Singapore and New Zealand.  Worse than current 
spending levels in the eyes of the Ministry of Finance 
advisor, of the money currently spent on research and 
development, two thirds of it is public sector money. 
Chilean private companies spent only three tenths of one 
percent of GDP on research in 2005, or about USD 350 million. 
 There is also no evidence that the public sector money spent 
on innovation led to any economic growth or job creation. 
 
6. If the Chilean private sector is not spending enough money 
on research and development, foreign investors are not 
spending money on it at all.  Though Chile might still be 
able to attract respectable levels of foreign direct 
investment (FDI) -- however, the total level in 2005 showed a 
big drop-off compared to 2004 -- most of the FDI goes to a 
few basic sectors.  Over 80 percent of the investment that 
has entered Chile in 2006 has gone to the mining, water, gas 
and electricity sectors.  Moreover, much of that FDI has gone 
into mergers and acquisitions, not into creating new 
infrastructure or jobs. 
 
7. COMMENT.  To its credit, the Bachelet administration has 
realized it must develop concrete incentives to get companies 
to spend on research and development.  Putting the onus of 
identifying promising industrial clusters on a ministerial 
commission smacks of state interventionism, but it is at 
least an effort to determine where Chile's might be able to 
develop a comparative advantage.  If Chile really wants to 
overcome its reliance on primary product exports and more 
importantly, update its conservative business culture, it 
will likely have to do more than tinker with tax rate 
margins.  It will need to articulate publicly a clear policy 
direction on innovation, including IPR, and stick to it over 
the long term. 
KELLY