While the more efficient allocation of resources as a result of structural reforms has had positive effects, economic growth has been mainly due to capital formation and increased labour input. In the future, Peru is likely to face greater competition from countries with similar comparative advantages. For its natural resource-based exports, it faces the uncertainty of world demand and the price volatility of commodities. There is ample evidence that, for a given volume of resources devoted to STI, innovation performance depends on the quality of the governance of STI systems, that is, the set of largely publicly determined institutional arrangements that shape policy design, implementation (agencies and instruments), delivery and evaluation and determine how the various public and private actors interact in allocating and managing resources devoted to STI.