Argentina will increase exports of the Knowledge Economy with support from the IDB

IDB press release

This is an automated translation of the original press release issued in Spanish

The Inter-American Development Bank (IDB) approved a US$35 million loan to boost exports from the Knowledge Economy (EDC) sectors of Argentina, through the provision of specialized human capital, the development and adoption of technologies based on Artificial Intelligence (AI) and the promotion of its international insertion.

Argentina has great potential to increase its share of EDC's exports of goods and services, which is currently at relatively low levels. The percentage of total world exports that comes from Argentina fell from 0.45% to 0.26% in the last 10 years. This is explained by macroeconomic and sectoral factors.

This program covers different challenges, among which are the need to increase trained human capital, the lack of collaboration between the scientific and technological system and the productive sector, and the lack of capacities to promote the EDC sectors by the agencies of national and subnational trade and investment promotion.

The EDC is made up of a group of more sophisticated sectors based on an intensive use of knowledge, talent and investment in intangibles. In the case of Argentina, these sectors include: Knowledge-Based Services (software and computer services, audiovisual, professional services, geological, financial services, R&D, health), bioeconomy, nanotechnology, experimental R&D, industry 4.0 and the space, satellite and nuclear industries.

To address these challenges, the program will implement actions aimed at training a generation with skills in advanced technologies demanded by companies with internationalization potential, as well as promoting the development and adoption of AI-based applications in exporting companies or with export potential. Likewise, it will launch activities to contribute to a greater internationalization of EDC companies, which include the implementation of national, subnational and sectoral development strategies, and development actions and international positioning of the sector.

In addition, the program will emphasize promoting the participation of women and diverse groups, and the inclusion of the climate change approach.

The IDB loan has a 25-year repayment term, a 5.5-year grace period, and an interest rate based on SOFR.

About the IDB
The Inter-American Development Bank's mission is to improve lives. Founded in 1959, the IDB is one of the main sources of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research projects and offers policy advice, technical assistance, and training to public and private clients throughout the region.