Long abstract

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Several OECD countries have followed such a strategy in the past and come out ahead. Such investments in regional innovation systems and technology-transfer mechanisms can facilitate the transition to a knowledge economy and create jobs. Actions are needed by all levels of government with the private sector to support a transition from “made in Mexico” to “created in Mexico”. A key question for Mexico, and other OECD countries, is whether national policy supports the development of regional innovation systems generally, and, if so, does it address the development needs of lagging regions as well. National policy approaches should better serve different types of states based on their industrial and scientific capacities. Not every OECD region can be a leader in technology like Silicon Valley; but all regions need to improve their capacity to adapt knowledge for their innovation needs. Firms are at the heart of innovation, but they do not operate in isolation. Policy trends in OECD countries in regional development, science and technology, enterprise, and higher education include regional approaches to achieve national innovation and economic growth goals. Mexico’s national policies do not yet sufficiently promote competitiveness in all types of regions. This must be addressed urgently, as there are high inter-regional disparities in income levels and productivity in the country. Mexican states are increasingly encouraging clusters and regional innovation systems, but their efforts could be re-focused to emphasise a knowledgebased economy. States need to make greater efforts to integrate S&T (science and technology) and innovation into their broader economic development and competitiveness agendas. And they need to co-operate more with each other. This Policy Brief explores how national and state policies in Mexico can improve regional innovation, which, in turn, can help grow the national economy and boost productivity.