MIT Sloan professor Michael A. Cusumano said on Mar. 26 that Uruguay offers a promising environment for innovation and investment, following his visit to the country to participate in UM Connects.
Cusumano, who has studied innovation ecosystems globally, pointed to Uruguay’s high standard of living, well-educated population, strong universities, and stable government as key factors that make it attractive for research and entrepreneurship. He said, “I would describe Uruguay as a small advanced country in Latin America, in South America in particular, where the standard of living is high, people seem well educated, universities seem good, and the government seems very stable and very interested in creating a better future for everyone.”
The professor emphasized the importance of universities at the center of successful innovation ecosystems. “It’s very, very hard to have a true innovation ecosystem without universities in the middle of it,” Cusumano said. He also noted that government support is crucial: “A government that supports innovation and economic development, research and education is very important.” Investors often consider regulatory frameworks before entering new markets.
During his time in Montevideo and Punta del Este, Cusumano was impressed by Uruguay’s reputation as a stable democracy. “What impresses me most is the reputation of the country as a very stable democracy, which I think is very important,” he said. Predictability from institutions can be decisive for technology companies considering investment.
Cusumano highlighted Uruguay’s tradition in education and digital literacy as an asset for emerging technologies like artificial intelligence: “Uruguay has a long history of literacy and information technology… you should become a leader in South America in understanding how to use artificial intelligence.” He also compared Uruguay’s strategic location between Brazil and Argentina to Ireland’s role connecting with larger markets.
At UM Connects organized by the University of Montevideo, Cusumano observed how easily key actors from across sectors could gather together—a challenge larger countries often face. He explained this could become an advantage: “There is a concept we call ‘judo strategy’, where you turn your disadvantages into advantages.” Looking forward, he advised focusing on select areas: “You cannot do everything… pick one or two areas that could be special areas of investment for the country.”
Despite challenges facing smaller economies globally, Cusumano concluded with optimism about Uruguay’s prospects: “It’s one of the maybe not so well-known places in Latin America that I think people should pay more attention to.”
