How can a small South American country compete economically with nations that invest 10 to 20 times as much in research and development? Chile's strategy is to search for solutions for local needs that have not been addressed overseas. In particular, universities, private companies, and the government are working together to develop new biotech applications for industries vital to Chile's economy.

Take mining. Chile is the world's largest producer of copper, and copper accounts for about half of the country's exports. But it is becoming more and more difficult to find high-grade deposits that are cheaply and easily mined. The government has therefore encouraged a partnership between the state-owned mining corporation Codelco and Japan's Nippon Mining and Metals. A joint venture between these two organizations, called Biosigma, is developing the use of bacteria to extract copper from ore. This approach, known as biomining, is less expensive and less environmentally destructive than conventional processes. "We are one of the first companies totally specialized in the development and application of genomics for mining," says Ricardo Badilla, CEO of the Santiago-based company.