Buenos Aires, Argentina (April 8, 2025) — Fundación Internacional Bases and We Are Innovation (WAI) unveiled a new joint briefing paper titled “Fostering Innovation as an Engine of Economic Growth in Argentina.” The document addresses Argentina’s opportunities for growth through innovation in four key sectors: Agriculture Technology (Ag-Tech), Green Hydrogen, Lithium Production and Innovative Consumer Products.
Over the past 70 years, Argentina has faced significant economic challenges, marked by a lack of growth, deep recessions, unemployment and extremely high inflation rates. The election of President Javier Milei in 2023 corresponded to a dramatic shift in the landscape. Milei’s ambitious and reform-based approach resulted in a fiscal surplus, declining inflation, improved credit ratings, and positive reactions from foreign investors. Nevertheless, there is still more to be done, as Argentina should demonstrate political stability to regain international trust and place itself as a reliable partner.
Fostering innovation appears to be a crucial step for Argentina’s economic progress, as it can increase productivity, diversify the economy, create jobs, attract investments, strengthen skill development and promote entrepreneurship. However, according to the World Bank’s Global Innovation Index, the country is not as innovative as most of its South American counterparts. In spite of this, Argentinians’ high education rates and entrepreneurial spirit—which have resulted in 12 tech unicorns—reveal a potential that must be explored. AgTech, Green Hydrogen, Lithium Production and Innovative Consumer Products stand out as sectors to invest in.
Argentina’s agriculture and food industry provide significant contributions to its GDP and tax revenues, besides making it the world’s third largest food exporter. However, the sector has been losing competitiveness in international markets and shifting weather patterns are requiring adaptive practices. Argentina has an opportunity to reinforce its Ag-Tech ecosystem, which already counts on more than 160 specialized firms. While these companies are focused on innovative solutions involving farm management, biotechnology, and robotics, the country is positioned to become a regional leader in agrifood technology development.
Regarding the Energy Sector, Argentina’s abundant natural resources are a valuable asset. The powerful winds of the region of Patagonia enhance a strong capacity for wind energy generation, which can be converted into green hydrogen – a game-changing technology for storing energy and transporting it efficiently over long distances. Green hydrogen is facing a global demand as a pivotal option to achieve net-zero transmissions. By producing it, Argentina has the chance to establish itself as a major player in the clean energy economy and to build solid trade partnerships with entities like the EU.
The Lithium Sector, on its hand, disposes of vast resources across the nation and is committed to Direct Lithium Extraction (DLE) technology, which has a much reduced environmental impact compared to traditional evaporation ponds. With global battery manufacturers and automakers facing increasing pressure to secure environmentally responsible supply chains, Argentina’s natural advantages and embrace of DLE technology create a strategic market advantage.
Finally, the evolution of the nicotine product landscape presents a transformative economic opportunity. Smokers are increasingly shifting toward safer alternatives, such as Innovative Nicotine Products (INPs) and Heated Tobacco Products (HTPs). As the world’s ninth-largest tobacco producer, Argentina has the potential to become a high-value manufacturing hub for these products, fostering job creation, increased exports, and stable tax revenues.
Ag-Tech, Green Hydrogen, Lithium, and INPs offer a balanced innovation portfolio and have the capacity to produce synergy effects between each other. However, outdated legislation is delaying the unlocking of investments in these key sectors. Through this Briefing Paper, Fundación Internacional Bases and We Are Innovation suggest the following reforms: create clear roadmaps; reduce trade barriers; increase fiscal incentives; establish tax-free zones; conclude free-trade agreements; improve infrastructure; strengthen public-private partnerships (PPP); develop sector-specific strategies; and invest in human capital.
Argentina is set to become a globally competitive economy and a model for sustainable growth, but must adopt a cohesive, long-term strategy for that and seize its unique resources.
ENDS
ABOUT THE AUTHOR
Horacio Arana is Senior Research Fellow at Fundación Internacional Bases. Horacio has a degree in Agricultural Economics (UB) and a Master in Business Administration (IAE). Academic Secretary and Professor of Principles of Economics FCE-UAI. Researcher on topics of the Austrian School of Economics, he has participated in international conferences and written articles on the specialty.
ABOUT FUNDACIÓN INTERNACIONAL BASES
Fundación Internacional Bases is an institution that thinks globally and acts locally. Bases participate in the most critical discussions on individual liberties and the market economy. We do not seek to be just another voice but to be an active part of a fundamental change that will bring about the triumph of freedom, the passage to a society of responsible individuals, the opening of the economy, and the diminishing of the role of government in our lives. For this, we actively cooperate with think tanks, individuals, educational institutions, new media people, and all those who want complete freedom. For more information, visit https://fundacionbases.org
ABOUT WE ARE INNOVATION
We Are Innovation is a dynamic network of individuals and institutions who fervently believe in the power of innovation to drive progress and solve the world’s most pressing problems. With a global presence encompassing over 45 think tanks, foundations, and NGOs, We Are Innovation represents the diverse voices of a global civil society committed to advancing human creativity, embracing new technologies, and promoting innovative solutions. Through our collaborative approach and cutting-edge expertise, we are spearheading transformative change on a global scale. To learn more about our work, visit us at https://weareinnovation.global/
