AgriFoodTech Innovation and Entrepreneurship Ecosystem in the Northern Triangle of Central America: Diagnosis and Recommendations (Innovare Revista de ciencia y tecnología)

Summary

• Research and development (R&D) investment remains persistently low across Honduras, Guatemala, and El Salvador, staying below 0.1% of GDP in all three countries.p.1
• In Honduras, the agricultural sector contributed 11.2 % of GDP value added in 2024, while historical R&D investment was estimated at ∼0.04–0.06 % of GDP.p.4
• MSMEs represent > 90 % of the business fabric in Honduras and generate 60–70 % of total employment.p.4
• Guatemala's agricultural sector accounts for 9.8 % of GDP in 2024, but modern technology adoption remains severely limited with < 25 % of producers using modern technology.p.4
• Micro, small, and medium enterprises (MSMEs) make up ∼95 % of all enterprises in Guatemala and ∼99 % of enterprises in El Salvador.p.4
• Agriculture generates 4.4 % of GDP in El Salvador, where investment in agricultural logistics equals 1.1 % of agricultural GDP.p.4

Key insights

1. R&D funding across the Northern Triangle is structurally constrained at below 0.1% of GDP, well behind international standards.p.1
2. Institutional fragmentation and weak inter-institutional coordination limit the scalability of innovative agrifood business models across the region.p.2
3. Honduras retains a strong strategic focus on agriculture with an 11.2 % GDP contribution, but faces structural technical lagging.p.4
4. Guatemala features a strong university incubation network, yet less than 25 % of agricultural producers currently deploy modern technologies.p.4
5. El Salvador shows the lowest agricultural share of GDP at 4.4 %, but leads the three countries in relative agricultural logistics investment at 1.1 % of agricultural GDP.p.4
6. Micro, small, and medium-sized enterprises dominate the regional economy, constituting up to ∼99 % of all businesses in El Salvador.p.4
7. Multi-stakeholder collaboration among academia, government, and the private sector is essential to establish effective regional AgriFoodTech platforms.p.5