Innovation in Latin America is a challenge for achieving development. Several Latin American countries and businesses are attempting to increase innovation and entrepreneurship but they face substantial challenges and difficulties. Institutional, governmental and business policies and practices need to be enhanced in order to increase such innovation. Increasing business research in Latin America and university-business partnerships is probably key in such endeavor. This special issue provides some evidence regarding these challenges at the company level, industry level, and country level. This issue also includes three cases showing Latin American company experiences with financial, marketing and new product innovations and market changes. (C) 2013 Elsevier Inc. All rights reserved.