Government financial incentives and their role in developing electronic technological capabilities in Guadalajara, Mexico

Abstract

The electronics industry in the Guadalajara Metropolitan Area (GMA), Mexico experienced significant growth during the 1990s. However, development of electronic design capabilities in the GMA is reduced compared to this growth. Furthermore, in small and medium businesses, few employees are performing design compared to the sector size. To increase the value added and optimise the multinational corporation's potential in the GMA, understanding how the inhibitors and enablers participate in the development of these activities is key. This report presents a multiple case study of seven businesses performing electronic design in the GMA. One enabler by which they access financial support was through government financial incentives. Although these incentives are an asset, they do not incite electronic design activities due to their short-term impact, considering activities in electronic design requires long-term financial mechanisms. Thus, we suggest that policies in electronic design activities should be reviewed to provide long-term financial support.