Latin America's Role in the Material Production of the Digital Transformation

This study addresses a critical gap by shifting the analysis of digital transformation away from the predominant discourse on innovation and algorithms towards its material foundations. It specifically examines Latin America's (LA) position within the emerging Digital International Division of Labor (DIDL). Its novelty lies in applying a geopolitical-materialist approach to peripheral digital economies, contrasting LA's historical role as a commodity supplier with its current capacity for strategic participation in the global value chains underpinning digitalization – particularly concerning critical minerals (e.g., lithium) and technology manufacturing.

Methodology: A comparative analysis of representative cases (Brazil, Chile, Argentina, Mexico) was employed, integrating:

1. Evaluation of their position in international innovation and technological capability indices.
2. Analysis of economic structure and industrial/digital policies.
3. Mapping of the reserves-production-consumption-export relationship for critical strategic minerals, with emphasis on lithium.
4. Review of international cooperation strategies.

Results: The research reveals differentiated patterns of (dis)insertion into the DIDL:

1. Argentina exhibits a reinforced structural dependence on traditional centers of power (state and corporate).
2. Chile and Mexico, despite seeking alternatives, persist in roles as intermediate goods suppliers, hampered by fragile and ineffective national innovation systems unable to reduce dependency.
3. Brazil emerges as a distinct case, being the only regional actor achieving effective international economic diversification, underpinned by a state-driven innovation system focused on the strategic utilization of its critical resources.

Central Conclusion: The region faces a significant risk of marginalization within the global digital economy unless it urgently redefines its industrialization strategies, pursues sovereign digitalization, and enhances South-South cooperation. This is essential to transcend the extractive model and develop endogenous capabilities within the material digital value chain.