Sectoral innovation capacity and interrelationships between sectors of the economy in the municipality of León

Abstract

In Nicaragua, the lack of updated sociodemographic information at the level of cities, municipalities, territories, communities, sectors and neighborhoods constitutes a limitation for carrying out studies on the characteristics of local and territorial development and thus propose evidence-based actions that are more efficient and that contribute to the well-fare of society, even when the existing institutional actors in the territories are clear about what they want. This research aimed to characterize the economy of the municipality of León from the perspective proposed by Rodríguez (2015), regarding the dimensions of innovation and interrelation of the economic sectors of the municipality (Sectorial-Territorial Model). The study was based on the Theory of endogenous development, that uses the sectoral classification proposed by the National Institute of Information Development (INIDE), which proposes 10 economic sectors and has a quantitative approach, given that 20 interviews were conducted with qualified informants and local economics actors to subsequently quantify sub indices and indices proposed by the model, and identify if the municipality is classified in Low Development DB, Defensive Development DD, Sectorial Development DS or Territorial Development TD. The results show that 50.8% of formal employment is concentrated in sectors with DS (manufacturing, financial, electricity, gas and water, agriculture, livestock) and 36.5% in sectors of Defensive Development (community, social and personal services, hotels and restaurants) and 12.7% in sectors with Low Development (fishing, mines and limestone quarries, wholesale and retail trade, transportation, storage and communications). Finally, the economy of León is at DB (1.56.1) with a perspective of moving towards a DD, which concentrates formal employment in activities with high levels of innovation but with little important relationship with the rest of the local economy.