Abstract
AbstractThis paper looks at the factors driving regional growth inMexico, paying special attention to the potentially growth‐enhancing role of innovation and innovation policy. The analysis combines innovation variables with indicators linked to the formation of adequate social conditions for innovation (thesocial filter), and spillovers for 31 Mexican states and theMexico City capital district (theDistrito Federal) during the period 2000–2010. The results indicate that regional economic growth acrossMexican states stems from direct investment in research and development (R&D) in areas with favorable social filters and which can benefit not only from knowledge spillovers, but also from being surrounded by rich neighbors with good social conditions. The results stress that, althoughMexican innovation policy has been relatively well targeted in order to generate greater economic growth, its relatively modest size may have undermined the attainment of its main objectives.
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