Conflict, entrepreneurship and innovation

A couple of days ago I attended the seminar “Beyond de Future”, organized by Idemax, which brought together a slightly diverse group of people to discuss the country’s challenges in the context of the relationship between science, business and innovation. As usual, several speakers mentioned Korea, Israel and Singapore as examples of countries that once had a standard of living similar to Chile’s but today show enviable development indicators. Education, the role of the State, social cohesion and, of course, the virtuous relationship between science and business were cited as common causes and factors.

I didn’t dare disagree with the experts on the panel and waited, slyly, to pour out my opinions from the safety of the written word. In my defense, since everyone agreed that social peace and a shared higher purpose were a fundamental factor for development, arguing that one of the main causes of this success was conflict (and war in particular) would have been a somewhat unpopular opinion. Because what these three countries have in common is an existential threat, one of whose consequences is the virtuous relationship between science and business, driven by the defense sector.

Let me explain: in every society, what is “possible” is determined by the scientific, technological and industrial capabilities it has developed. Defense (as a sector) takes solutions that “already exist” within that framework, adopting known technologies that have proven their usefulness and reliability, seeking to eliminate risk as much as possible. Basically, the antithesis of innovation. On the contrary, a conflict or an imminent threat turns it into a demander of entirely new solutions that the adversary neither has nor knows about, expanding the limits of the possible and becoming a fundamental engine of innovation.

How can we emulate in Chile the virtuous relationship between science, industry and defense without the need for a conflict? We could take advantage of a crisis like the pandemic, when defense, private industry and universities came together to produce mechanical ventilators in record time. But that was an exceptional situation, so the right question is: how can we achieve that virtuous relationship systematically? One way is to involve entities that live under an existential threat, as is the case with science-based startups (EBCTs). Indeed, the bet of EBCTs is, in essence, to create a product or service so novel that it even creates new markets. But this potential is also their weakness: every step forward into territory where no one else has been can lead them to disaster, and the one thing they cannot do is stop.

Today, EBCTs play an important role in the programs of our armed forces, which seek to work jointly with the science, technology, knowledge and innovation ecosystem, and both the Navy’s Continuous National Shipbuilding Plan and the Air Force’s National Space System consider working with EBCTs a fundamental piece for developing defense capabilities and driving Chile’s scientific, technological and industrial development.

Let’s hope the rest of us live up to this strategic vision, and that together we manage to move decisively toward our country’s development.

Javier Ramírez
Executive Director, Know Hub Chile