Public‐private partnership to develop infrastructure and encourage innovation in Mexico

Abstract

PurposeThe paper focuses in the innovation strategies and wealth creation in Mexico.Design/methodology/approachThe paper explores the innovation competitiveness process in both the manufacturing and information technology sectors through four research questions.FindingsGiven that the manufacturing sector has been the driver in terms of invention and innovation, it seems logical that Mexico faces a similar parallel. Also, the Mexican information technology sector needs to explore new business opportunities in order to stay profitable in the long term.Research limitations/implicationsThe paper is in an early stage and needs to focus on one policy issue. Moreover, it is not a proper diagnosis of the current situation of the Mexican manufacturing sector. Suggestions for future research include expanding the literature review and including recent reports issued by international organisations (e.g. OECD' Science, Technology & Industry Outlook, UNCTAD's World Investment Report 2008: Transnational Corporations and the Infrastructure Challenge, and the World Economic Forum's Global Competitiveness Report). This inputs would help to strengthen the analysis with an international comparative perspective (e.g. what are the relevant gaps between Mexico and competitor Asian economies?). In turn this would provide a more rigorous grounding for recommendations.Practical implicationsThe Mexican economy needs to develop based on infrastructural investment from the Mexican government and the growing private sector (maquiladoras and indigenous Mexican enterprises). Also, Mexico needs to invest heavily in educational enterprise in order to foster an atmosphere of research and discovery to support efforts by the government and private sectors.Originality/valueAdequate investment by the Mexican government and private sector could potentially bring back the manufacturing establishments currently located in Asia to Mexico, given the proximity advantages coupled with the NAFTA agreement.