Nearshore Americas

Argentina Borrows $100 Million From IDB to Stimulate Technology Innovation

Argentina is borrowing US$100 million from the Inter-American Development Bank (IDB) to foster technological innovation, according to an IDB press release.

The South American country will invest the money in research and development activities and work towards improving the competitiveness and productivity of its enterprises.

IDB approved a US$700 million line of credit in 2009, when Argentina first announced its technology innovation program. It has since been releasing the funds in installments.

Much of the money will go toward initiatives that are designed to generate a skilled workforce, as well as activities that help the country meet the technological challenges in economically strategic sectors such as agribusiness, energy, and environmental services.

The program includes two subprograms: one for strengthening capacity for innovation and technology, and another for the formation of human capital for innovation.

There also plans to create and strengthen technology service centers and finance the training of local tech professionals abroad.

Expanding the technology talent pool is a prime objective and priority for Argentina, because as many as 4,000 positions were left unfilled in the country’s software development firms last year, according to Argentina’s Chamber of Information Technology and Software Services (Cessi).

The lobby group expects the industry to generate nearly 13,000 jobs this year, with the Cessi’s president Aníbal Carmona attributing the job growth to increasing digitization in key economic sectors.

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Carlos Pallotti, Undersecretary in the Production Ministry and the chief architect of Argentina’s far-reaching IT rebirth, has also outlined the goal of training over 111,000 programmers, engineers, and entrepreneurs over the next three-plus years.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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