Technological Innovation in Latin America: A Takeoff Deep Tech
Latin America is experiencing an unprecedented wave of innovation, marked by both Deep Tech and Big Tech. In the world of business and technology, the stories of small startups Companies that evolve into industry giants are inspiring. A prime example is Establishment Labs, originating in Costa Rica, which began by focusing on innovation in breast implants and is now listed on the Nasdaq index of the New York Stock Exchange, with an astounding market value of 1.8 billion.
In another corner of Latin America, the Chilean company NotCo is using artificial intelligence to transform the way we consume food. Not only that, the Argentinian firm Bioceres is revolutionizing food cultivation methods. Meanwhile, Satellogic, also from Argentina, is creating affordable, high-resolution satellite constellations to observe the Earth in detail.
What do these diverse companies have in common? They have all achieved scientific breakthroughs or introduced genuinely revolutionary technological innovations. Unlike companies that focus on mobile applications or incremental improvements to products and business models, these startups They are immersed in pure technological innovation, which is known as Deep Tech.
The study «Deep Tech"The new wave," developed by Ignacio Peña and the IDB Lab team, reveals an explosion of innovation in the field of Big Tech in Latin America. This is not only extraordinary in terms of magnitude, but it also opens the door to possibilities that previously seemed like science fiction, such as diagnosing diseases like cancer from a simple drop of blood.
Latin America is experiencing an unprecedented wave of innovation, marked by deep technology (Deep Techand Big Tech
A notable trend is the decrease in costs associated with these innovations in recent years, which has facilitated their adoption and expansion. The startups of Deep Tech Their main habitat is found in Argentina, Brazil and Chile, which together account for 80% of the total in the region. In terms of market value, these three countries, along with Costa Rica, lead the ranking.
Argentina
Within this context, Argentina has the highest number of startups of Deep Tech, with 103 to its credit. An emblematic case is that of Auth0, a cybersecurity company that in 2021 was acquired for $6.5 billion, thus reaching a historic milestone in the region.
Chili
Chile, although with a more modest economy compared to Brazil and Argentina, is home to startups of Deep Tech with a combined market value of $2 billion. This is due, in part, to the focus on artificial intelligence applied to food, led by companies like NotCo.
Costa Rica
One country that deserves special mention is Costa Rica, whose presence on the deep tech map is marked by the success of Establishment Labs, the region's most valuable startup in this area. In fact, this company accounts for 971% of the sector's market value in the country.
More than 60% of innovation in the Deep Tech In the region, the largest sector is biotechnology, followed by artificial intelligence with 11%. Additionally, sectors such as nanotechnology, clean technologies, space technology, advanced mobility, and robotics are emerging as areas of growth.
However, Latin America shows notable differences in the adoption of Deep Tech startups. Mexico and Colombia lag behind in this area, with a significantly lower concentration of these companies compared to other countries. Mexico, despite having a strong manufacturing sector and access to venture capital, has only 0.2% startups of deep technology per million inhabitants.
Although there is still a long way to go, the outlook is encouraging. Deep Tech It is not just a science fiction promise, but a tangible opportunity to improve the lives of most of the population in the region, as Marcelo Cabrol, head of Scalability, Knowledge and Impact at IDB Lab, argues.
