MTP - Strategic Research and Innovation Agenda 2016

Mexican Technology Platform SRIA 2016

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Strategic Research
and Innovation
Agenda 2016
Preliminary Draft for internal review
01/03/2015


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1. Content
Executive Summary ....................................................................................................................................... 21
Introduction ..................................................................................................................................................... 22
1. Technology Platforms ............................................................................................................................ 25
1.1 European Technology Platforms (ETP) ........................................................................................ 26
1.1.1. The Vision ................................................................................................................................. 27
1.1.2. The Mission .............................................................................................................................. 27
1.1.3. Core activities ........................................................................................................................... 27
1.1.4. ETP life cycle ............................................................................................................................ 29
1.1.5. Individual ETPs ........................................................................................................................ 29
1.2 Latin American Technology Platforms (LATP) ............................................................................. 30
1.2.1 Project FIRST ............................................................................................................................ 31
1.2.2 The LATP structure .................................................................................................................. 32
1.2.3 What is a Thematic Working Group? (TWG) ........................................................................ 33
1.2.3.1 Main characteristics of a TWG ............................................................................................ 34
1.2.3.2 The TWG process ................................................................................................................. 35
1.2.4 LATP general guidelines .......................................................................................................... 36
2. Mexico: great potential and challenges for innovation ...................................................................... 38
2.1 National Development Plan 2013-2019 ........................................................................................ 41
2.2 Innovative Development Program 2013-2018 (PRODEINN) ..................................................... 49
2.2.1 Sectoral Agendas ...................................................................................................................... 51
2.3 Special Program for Science, Technology and Innovation (PECITI) ........................................ 51
2.3.1 State Innovation Agendas (AEIs) ........................................................................................... 57
2.4 The National Entrepreneurship Institute (INADEM) .................................................................... 58
2.5 Strategic industry sectors and infrastructure in Mexico .............................................................. 62
2.5.1 INADEM regional strategic sectors ........................................................................................ 62
2.5.2 Smart Research & Innovation Specialization Strategies ..................................................... 63
2.5.2.1 Scientific Development environment .................................................................................. 64
2.5.2.2 Technology Parks .................................................................................................................. 65
2.5.2.3 Accelerators (TechBa) .......................................................................................................... 66


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2.5.2.4 Incubators ............................................................................................................................... 68
2.6 Cluster development ........................................................................................................................ 68
2.6.1 Cluster benchmarking .............................................................................................................. 70
2.6.2 European cluster collaboration spaces driven by R&D+i .................................................... 72
2.7 Mexico innovation rankings ............................................................................................................ 76
2.8 Mexico Competitiveness rankings ................................................................................................. 79
2.9 The ICT sector .................................................................................................................................. 81
2.9.1 Global ICT sector outlook ........................................................................................................ 81
2.9.2 Mexico ICT sector outlook ....................................................................................................... 84
2.9.3 ICT public policy ........................................................................................................................ 93
2.9.3.1 Mexico Telecommunications Reform ................................................................................. 94
2.9.3.2 National Digital Strategy ....................................................................................................... 96
2.9.3.3 Mexico Connected ................................................................................................................. 96
2.9.3.4 PROSOFT 3.0: the new vision of the ICT sector .............................................................. 97
2.9.4 Certification of IT development centres ................................................................................. 99
2.9.5 ICT clusters (MxTI) ................................................................................................................. 100
2.10 Mexico innovation ecosystem environment: SWOT analysis ................................................ 102
3. International cooperation ..................................................................................................................... 104
3.1 Cooperation with Europe .............................................................................................................. 105
3.1.1 European Union cooperation background ........................................................................... 107
3.1.1.1 EU-LAC Programmes ......................................................................................................... 107
3.1.1.2 EU-LAC Policy Dialogue ..................................................................................................... 107
3.1.1.3 EU-LatAm Science & Technology cooperation actions ................................................. 107
3.1.1.4 EU-LatAm Support Actions ................................................................................................ 109
3.1.1.5 Intra-territorial Living Labs .................................................................................................. 109
3.1.1.6 Innovation projects and initiatives ..................................................................................... 110
3.1.1.7 EU-Mexico cooperation actions ......................................................................................... 111
3.1.1.8 Other sources ....................................................................................................................... 111
3.1.2 EU-MEX INNOVA ................................................................................................................... 112
3.1.3 Call CONACYT-HORIZON 2020 .......................................................................................... 113


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3.2 Cooperation with United States ................................................................................................... 115
3.2.1 High-Level Economic Dialogue ............................................................................................. 116
3.2.2 Mexico-United States Science Foundation (FUMEC) ....................................................... 117
3.2.2.1 Innovation Corps (I-Corps) Pilot Program ........................................................................ 119
3.2.2.2 Binational Intelligent Manufacturing Initiative (BIMI) ...................................................... 119
3.2.2.3 Industry-University Consortia in Mexico ........................................................................... 119
3.2.3 Bilateral Forum for Higher Education, Research and Innovation (FOBESII) ................. 120
3.2.4 MUSEIC ................................................................................................................................... 121
3.2.4.1 The iCluster Subcommittee ................................................................................................ 123
3.2.4.2 The Technology Commercialization Subcommittee ....................................................... 124
3.2.4.3 The Energy and Sustainability Subcommittee ................................................................ 125
3.2.4.4 The Women Entrepreneurship Subcommittee ................................................................ 126
4. The Mexican Technology Platform .................................................................................................... 129
4.1 MTP background ............................................................................................................................ 129
4.2 MTP Vision ...................................................................................................................................... 136
4.3 MTP Mission ................................................................................................................................... 137
4.4 MTP objectives ............................................................................................................................... 137
4.5 The MTP use of open innovation methodologies ...................................................................... 138
4.6 The MTP TWGs ............................................................................................................................. 142
4.7 International cooperation .............................................................................................................. 143
4.7.1 Cooperation with Europe ....................................................................................................... 144
4.7.1.1 Project CONECTA 2020 ..................................................................................................... 145
4.7.1.2 MTP TWGs vs. European Technology Platforms cross-references ............................ 148
4.7.1.3 Project AL-LAS .................................................................................................................... 149
4.7.2 Cooperation with Latin America ............................................................................................ 151
4.7.3 Cooperation with North America ........................................................................................... 153
4.7.3.1 Binational iCluster mapping workgroup ............................................................................ 154
4.7.3.2 Mexico-US cluster mapping work ...................................................................................... 155
4.7.4 Extending cluster mapping cooperation to Canada and Europe ..................................... 157
5. The iCluster Ecosystem ...................................................................................................................... 159


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5.1 iCluster Ecosystem objective ....................................................................................................... 159
5.2 Project iCluster Ecosystem participants ..................................................................................... 160
5.3 Technology Platforms as a vehicle for innovation cooperation ............................................... 160
5.4 Clusters as a vehicle for competitiveness and economic development ................................. 160
5.5 Technology Platforms s vs. clusters cross references ............................................................. 161
5.6 The Mexico iCluster Ecosystem framework ............................................................................... 164
5.6.1 Mexico Cluster map ................................................................................................................ 164
5.6.2 Identification of Economic Development Opportunities (IOED) ....................................... 165
5.2.3.1 Example of the Monterrey-Saltillo region corridor ....................................................... 167
5.2.3.2 Example of the Tijuana-Tecate-Mexicali corridor ....................................................... 168
5.2.3.3 Mega-Regions .................................................................................................................. 169
5.6.3 Methodology alignment .......................................................................................................... 170
5.6.4 Public policy alignment strategy ........................................................................................... 171
5.6.5 Homologated international language ................................................................................... 173
5.6.5.1 Research and Experimental Development – Frascati ................................................ 173
5.6.5.2 North American Industry Classifications (NAICS) ....................................................... 173
5.6.5.3 Cluster definitions ............................................................................................................ 174
5.7 The iCluster Ecosystem initiatives ............................................................................................... 174
5.7.1 Cluster mapping core initiative .............................................................................................. 175
5.7.1.1 Cluster mapping objective .............................................................................................. 175
5.7.1.2 Cluster mapping strategic lines ..................................................................................... 175
5.7.1.3 Cluster mapping achievements ..................................................................................... 176
5.7.1.4 Cluster mapping expected results ................................................................................. 177
5.7.2 Border development core initiative ....................................................................................... 177
5.7.2.1 Border development objective ....................................................................................... 177
5.7.2.2 Border development strategic lines ............................................................................... 178
5.7.2.3 Border development achievements .............................................................................. 178


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5.7.2.4 Border development expected results .......................................................................... 180
5.7.3 Regional development core initiative ................................................................................... 180
5.7.3.1 Regional development objective ................................................................................... 180
5.7.3.2 Regional development strategic lines ........................................................................... 181
5.7.3.3 Regional development achievements ........................................................................... 181
5.7.3.4 Regional development expected results ...................................................................... 182
5.7.4 International cooperation cross-cutting initiative ................................................................ 182
5.7.4.1 International cooperation objective ............................................................................... 182
5.7.4.2 International cooperation strategic lines ....................................................................... 183
5.7.4.3 International cooperation achievements ...................................................................... 183
5.7.4.4 International cooperation expected results .................................................................. 184
5.7.5 High Impact Entrepreneurship cross-cutting initiative ....................................................... 184
5.7.5.1 High Impact Entrepreneurship objective ...................................................................... 184
5.7.5.2 High Impact Entrepreneurship strategic lines .............................................................. 184
5.7.5.3 High Impact Entrepreneurship achievements ............................................................. 185
5.7.5.4 High Impact Entrepreneurship expected results ......................................................... 186
5.7.6 Knowledge Economies cross-cutting initiative .................................................................... 186
5.7.6.1 Knowledge economies objective ................................................................................... 186
5.7.6.2 Knowledge economies strategic lines .......................................................................... 186
5.7.6.3 Knowledge economies achievements .......................................................................... 187
5.7.6.4 Knowledge economies expected results ...................................................................... 189
5.7.7 Gender equality cross-cutting initiative ................................................................................ 190
5.7.7.1 Gender equality objective ............................................................................................... 190
5.7.7.2 Gender equality strategic lines ...................................................................................... 190
5.7.7.3 Gender equality achievements ...................................................................................... 191
5.7.7.4 Gender equality expected results .................................................................................. 192


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6. Research & Innovation strategic lines ............................................................................................... 192
6.1 Networked Electronic Media - NEM-MEX TWG ........................................................................ 192
6.1.1 Vision ........................................................................................................................................ 194
6.1.2 Mission ..................................................................................................................................... 195
6.1.3 Market environment ................................................................................................................ 195
6.1.3.1 Strengths of the Creative Industries in Mexico ............................................................ 197
6.1.3.2 Electronic media .............................................................................................................. 197
6.1.3.3 Videogames ...................................................................................................................... 198
6.1.3.4 Recognition of the participants and their capabilities in the industry ....................... 204
6.1.3.5 National support programs ............................................................................................. 205
6.1.3.6 Guadalajara, Digital Creative City ................................................................................. 206
6.1.3.7 The State of Queretaro ................................................................................................... 206
6.1.4 The Strategic Lines of NEM –MEX ...................................................................................... 208
6.1.4.1 Digital content creation ................................................................................................... 208
6.1.4.2 Media Internet technologies ........................................................................................... 208
6.1.4.3 Apps for services ............................................................................................................. 208
6.1.4.4 Augmented reality ............................................................................................................ 209
6.1.4.5 Video gaming and simulation ......................................................................................... 209
6.1.4.6 e–Learning ........................................................................................................................ 209
6.1.4.7 Cloud computing .............................................................................................................. 209
6.1.5 NEM-MEX international cooperation priorities .................................................................... 209
6.2 SMART CITIES – MEX TWG ....................................................................................................... 212
6.2.1 Vision ........................................................................................................................................ 214
6.2.2 Mission ..................................................................................................................................... 214
6.2.3.1 Complement projects with similar objectives ............................................................... 222
6.2.3.2 Construct based on open source products .................................................................. 223


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6.2.3.3 Acquire market specific Data ......................................................................................... 223
6.2.4 FIWARE cooperation .......................................................................................................... 223
6.2.4.1 FIWARE Ecosystem in Mexico (INFOTEC) ................................................................. 224
6.2.5 Development of Smart Cities in Mexico ............................................................................... 227
6.2.5.1 Ciudad Creativa Digital (Guadalajara, Jalisco) ............................................................... 227
6.2.5.2 IQ Smart City (Ciudad Maderas, Queretaro) ................................................................... 229
6.2.5.3 Innovation clusters’ role in Smart Cities ....................................................................... 232
6.2.6 The Strategic Lines of the SMART CITIES-MEX TWG ..................................................... 233
6.2.6.1 Socialize openly and safely ............................................................................................ 233
6.2.6.2 City infrastructures and utilities ...................................................................................... 233
6.2.6.3 The future of transport .................................................................................................... 234
6.2.6.4 Platforms and devices ..................................................................................................... 234
6.2.6.5 IoT Device Management ................................................................................................ 235
6.2.6.6 IoT Platform Management .............................................................................................. 235
6.2.6.7 IoT Infrastructures ........................................................................................................... 235
6.2.7 SMART_CITIES-MEX international cooperation priorities ................................................ 236
6.3 INDUSTRY 4.0 – MEX TWG ........................................................................................................ 237
6.3.1 Vision ........................................................................................................................................ 239
6.3.2 Mission ..................................................................................................................................... 239
6.3.3.1 Needs of Human Capital for Industry Development ................................................... 242
6.3.4 The Strategic Lines of the INDUSTRY 4.0 – MEX TWG .................................................. 243
6.3.4.1 Efficient Manufacturing ................................................................................................... 243
6.3.4.2 Leveraging Robotics in Industrial Processes .............................................................. 244
6.3.5 INDUSTRY 4.0 – MEX international cooperation priorities .............................................. 244
6.4 ENERGY–MEX TWG .................................................................................................................... 245
6.4.1 Vision ........................................................................................................................................ 249


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6.4.2 Mission ..................................................................................................................................... 249
6.4.3.1 Mexico’s Oil and Gas resources .................................................................................... 252
6.4.3.2 Protecting the environment ............................................................................................ 253
6.4.3.3 Global Clean Energy Challenges and Opportunities .................................................. 254
6.4.3.4 Energy Reform in Mexico ............................................................................................... 256
6.4.3.5 Clean Tech ....................................................................................................................... 260
6.4.4 The Strategic Lines of the Energy-MEX TWG .................................................................... 262
6.4.4.1 Energy efficiency ............................................................................................................. 262
6.4.4.2 Internet and the Grid ....................................................................................................... 262
6.4.4.3 Electric Mobility ................................................................................................................ 262
6.4.4.4 Consumer reach .............................................................................................................. 262
6.4.4.5 Green materials ............................................................................................................... 262
6.4.4.6 Energy savings ................................................................................................................ 263
6.4.5 Energy-MEX international cooperation priorities ................................................................ 263
6.4.5.1 ENERGY-MEX potential links with ETP’s and LATP’s .............................................. 264
6.4.5.2 Project SEAS .................................................................................................................... 264


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List of Figures
Figure 1: European Technology Platform Life Cycle ................................................................................ 29
Figure 2: Individual European Technology Platforms ............................................................................... 30
Figure 3: Project FIRST Evaluation Meetings in Mexico City (February 2012) .................................... 31
Figure 4: Project FIRST ETP-LATP Mapping ............................................................................................ 31
Figure 5: Latin American Technology Platform structure ......................................................................... 32
Figure 6: Thematic Working Group creation process ............................................................................... 35
Figure 7: Thematic Working Group cooperation process ........................................................................ 37
Figure 8: Top 30 Rankings - Global Services Location Index ................................................................. 39
Figure 9: Percentage GDP per capita OECD upper half countries differences .................................... 41
Figure 10: GDP per capita differences showing labour productivity gaps ............................................. 42
Figure 11: Percentage GDP per capita OECD upper half countries differences .................................. 42
Figure 12: National Development Plan 2013 – 2018 ................................................................................ 43
Figure 13: TFP by Economic Activity .......................................................................................................... 45
Figure 14: TFP Contribution of Capital Services ....................................................................................... 45
Figure 15: TFP Contribution of Labor Services ......................................................................................... 46
Figure 16: Growth Diagnostic according to PDP ....................................................................................... 46
Figure 17: Mexico Economic Complexity ................................................................................................... 48
Figure 18: Number of researchers registered in the SNI registry (2015) ............................................... 52
Figure 19: National Council for Science & Technology operational frame ............................................ 52
Figure 20: Projected growth of GERD as a percentage of GDP (2014-2018) ...................................... 53
Figure 21: Gross Domestic Expenditure on R&D (2013) ......................................................................... 53
Figure 22: increase in the federal budget assigned to STI ...................................................................... 54
Figure 23: Human capital formation in strategic areas ............................................................................. 54
Figure 24: Regional development by investment in STI ........................................................................... 54


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Figure 25: CONACYT Incentives for Innovation Program projects supported ...................................... 55
Figure 26: CONACYT Incentives for Innovation Program private-public investment .......................... 56
Figure 27: Infrastructure resources (millions of US dollars) .................................................................... 56
Figure 28: CONACYT public research centers .......................................................................................... 57
Figure 29: INADEM entrepreneur support strategy .................................................................................. 59
Figure 30: INADEM as a key element of Mexico’s Reforms ................................................................... 60
Figure 31: Government role for SMEs and entrepreneurship ................................................................. 60
Figure 32: Scientific Development Index by state (2014) ........................................................................ 65
Figure 33: Techba Service Model ................................................................................................................ 66
Figure 34: Techba Service Model ................................................................................................................ 67
Figure 35: ESCA cluster benchmarking assessment ............................................................................... 70
Figure 36: Roadmap ‘Personalization of products and services’ ............................................................ 75
Figure 37: Service spectrum to promote international cross-cluster cooperation ................................ 76
Figure 38: Mexico Global Innovation Index rankings ...................................................................................... 77
Figure 39: Countries with no fall in GERD during crisis ........................................................................... 78
Figure 40: Innovation quality in top 10 High- and Middle-Income economies ...................................... 78
Figure 41: Global Competitiveness Index Framework ............................................................................. 79
Figure 42: ICT Geographic overview 2015 ................................................................................................ 82
Figure 46: WEF Network Readiness index drivers and impact ............................................................... 87
Figure 47: Mexico rankings on the ten pillars of the Networked Readiness Index 2015 ..................... 88
Figure 48: Mexico’s detailed indicators of the Networked Readiness Index 2015 ............................... 89
Figure 49: Mexico’s GDP Growth 2014-2015 vs. other economies ....................................................... 90


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Figure 50: Nominal GDP Growth in Mexico vs. IT industry revenue ...................................................... 90
Figure 51: European Technology Platform Life Cycle .................................................................................... 91
Figure 52: Mexico IT market growth 2013-2015 ............................................................................................. 92
Figure 53: Reasons to acquire IT goods and services in Mexico ................................................................... 93
Figure 54: PROSOFT 3.0 - Strategies ............................................................................................................ 98
Figure 55: ICT clusters in Mexico .............................................................................................................. 100
Figure 56: CONACYT-HORIZON 2020 process to obtain support ............................................................... 114
Figure 57: Mexico-United States Entrepreneurship and Innovation Council Subcommittees .......... 121
Figure 58: MUSEIC Steering Board meetings ......................................................................................... 123
Figure 59: MUSEIC iCluster Subcommittee kickoff ................................................................................ 124
Figure 60: Trilateral Women Entrepreneurship meeting in Austin ........................................................ 128
Figure 61: Mexican Technology Platform initial roadshow (2011) ................................................................ 130
Figure 62: Mexican Technology Platform introduction at the European Future Internet Week .................... 131
Figure 63: MexicanTechnology Platform international Kick-off event (2012) ................................................ 133
Figure 64: Mexican Technology Platform General Assembly meetings (2012-2013) ................................... 134
Figure 65: Mexican Technology Platform General Assembly meetings (2013-2014) ................................... 135
Figure 66: Mexican Technology Platform General Assembly meetings (2015) ............................................ 136
Figure 67: The innovation funnel .................................................................................................................. 139
Figure 68: Consolidation into 4 TGWs .......................................................................................................... 143
Figure 69: CONECTA 2020 meetings (2014-2015) ...................................................................................... 145
Figure 70: CONECTA 2020 Consortium EU-LatAm partners at the MTP Assembly .................................... 146
Figure 71: Project CONECTA 2020 Pilot for virtual cooperation .................................................................. 147
Figure 72: CONECTA 2020 Calls to Action .................................................................................................. 147
Figure 73: Mexican Technology Platform TWGs priority association requirements with ETPs ....... 148
Figure 74: AL-LAS Project agreement by Mexico City and the EU ...................................................... 149


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Figure 75: AL-LAS Project partner cities .................................................................................................. 150
Figure 76: AL-LAS Project allies ................................................................................................................ 150
Figure 77: Representative iCluster binational meetings ......................................................................... 153
Figure 78: U.S. cluster map ........................................................................................................................ 154
Figure 79: EU – US Cluster Workshop participants ................................................................................ 158
Figure 80: EU – US Cluster Workshop presentations ............................................................................ 158
Figure 81: Regional specializations in Mexico (location quotients) ...................................................... 163
Figure 82: Mexico iCluster Ecosystem socioeconomic scope .............................................................. 164
Figure 83: Mexico cluster map ................................................................................................................... 165
Figure 84: Characterizing regional industrial clusters ............................................................................ 166
Figure 85: Identification of most promising industrial subsectors ......................................................... 167
Figure 86: iCluster Ecosystem methodology alignment ................................................................................ 171
Figure 87: iCluster mapping public policy & international cooperation alignment strategy ........................... 172
Figure 88: iCluster Ecosystem cross-cutting initiatives ................................................................................. 174
Figure 89: Dynamic cross-sectoral linkages related to the Creative industries .................................. 195
Figure 90 Long Films produced in Mexico 2007-2012 ........................................................................... 198
Figure 91 Videogame spending in Mexico in 2011 (USD Millions) ...................................................... 199
Figure 92 Media and Entertainment Industries' Expected growth rates by 2016 ............................... 200
Figure 93 Media and Entertainment Market in Mexico ........................................................................... 201
Figure 94 LatAm Media and Entertainment Markets .............................................................................. 202
Figure 95 Mexican Hubs for Interactive Media ........................................................................................ 203
Figure 96: NEM-MEX presentation at the NEM General Assembly ...................................................... 210
Figure 97: MTP Smart Cities general framework .......................................................................................... 213
Figure 98: The operating systems making a city’s infrastructure .................................................................. 215
Figure 99: Step-by-step approach to becoming smarter ............................................................................... 216


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Figure 100: Global changes in major ICTs (2000-2015) ........................................................................ 216
Figure 101: Percentage of individuals using the Internet (2015) .......................................................... 217
Figure 102: MTP Smart Cities general framework ........................................................................................ 217
Figure 103: MTP Smart Cities general framework ........................................................................................ 218
Figure 104: Global quartiles by IDI value ...................................................................................................... 218
Figure 105: EU-Mexico Workshop ................................................................................................................ 225
Figure 106: Guadalajara Ciudad Creativa Digital ....................................................................................... 228
Figure 107: Stakeholders involved in shaping the city .................................................................................. 229
Figure 108: Vórtice Technology Park plans in Queretaro ............................................................................ 231
Figure 109: Roadmap ‘Smart Everything’ ..................................................................................................... 233
Figure 110: Embedded systems development concentration in Mexico ....................................................... 241
Figure 111: ENERGY-MEX formation roadmap ........................................................................................... 247
Figure 112: ENERGY-MEX Kick-off in Queretaro (July 24, 2015) ................................................................ 247
Figure 113: Activities during ENERGY-MEX Kick-off Event ......................................................................... 248
Figure 114: ENERGY-MEX TWG members ................................................................................................. 249
Figure 115: Roadmap ‘Resource Efficiency’ ................................................................................................. 252
Figure 116: Mexico’s energy trade ............................................................................................................... 253
Figure 117: New investment in Clean Energy growth (2004-2014) .............................................................. 255
Figure 118: Clean Energy investment (2014) ............................................................................................... 255
Figure 119: New investment in Clean Energy by region (2004-2014) .......................................................... 256
Figure 120: Mexican Energy Reform Landscape ...................................................................................... 257
Figure 121: Key Mexican Energy Reform Opportunities .......................................................................... 257
Figure 122: Mexico Energy Reform Timeframes ........................................................................................ 258
Figure 123: CONACYT Strategic Program to develop talent in the Energy sector ....................................... 259
Figure 124: Potential EU-LatAm Energy cooperation ............................................................................ 264


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Figure 125: European Energy Strategy (SET-PLAN) International Cooperation Opportunities ....... 265
Figure 126: Smart Energy Aware Systems European Project .................................................................... 265


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List of Tables
Table 1: Progress on Mexico’s structural reforms ..................................................................................... 40
Table 2: Top States’ Economic Complexity ............................................................................................... 49
Table 3: Technology Parks by state in Mexico .......................................................................................... 65
Table 4: Mexican Clusters with ESCA Bronze Certification .................................................................... 72
Table 5: Defined geographic regions for the investigation of trans-regional Collaboration of
European Clusters in Emerging Industries ......................................................................................... 73
Table 6: Composition of two technological communities (result of the Spin Glass analysis) ............. 74
Table 7: Global Competitiveness Index LatAm Rankings ........................................................................ 80
Table 8: Global Competitiveness Index LatAm Overall Index and Sub-Indexes .................................. 81
Table 9: ICT sector growth in Mexico ......................................................................................................... 85
Table 10: PROSOFT 3.0 - 2024 vision and general goals ...................................................................... 98
Table 11: PROSOFT 3.0 - Challenges and specific goals ....................................................................... 99
Table 12: PROSOFT 3.0 - Challenges and specific goals ..................................................................... 100
Table 13: EU-Mexico ICT clusters comparison based on excellence indicators (2012-2014) ......... 102
Table 14: mxTI ICT Cluster directory ........................................................................................................ 102
Table 15: SWOT analysis of the Innovation environment in Mexico ......................................................... 104
Table 16: EU-LAC European Programmes .............................................................................................. 107
Table 17: EU-LAC Policy Dialogue on Science, Technology and Innovation ..................................... 107
Table 18: EU-LatAm Science & Technology cooperation actions ........................................................ 109
Table 19: EU-LatAm Support Actions ....................................................................................................... 109
Table 20: Intra-territorial Living Labs ........................................................................................................ 110
Table 21: European innovation projects ................................................................................................... 111
Table 22: EU-Mexico cooperation actions ............................................................................................... 111
Table 23: Other sources ............................................................................................................................. 112


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Table 24: EU-Mexico INNOVA partner entities and Work Packages ............................................................ 113
Table 25: Key areas the EU and Mexico convened at the Joint Steering Committee (JSC) ........................ 113
Table 26: Mexico – U.S. Entrepreneurship and Innovation Council members .............................................. 122
Table 27: Mexican Technology Platform TWGs - European Technology Platforms cross-references ......... 149
Table 28: R&D+i EU-LatAm cooperation priorities ................................................................................. 152
Table 29: MTP Thematic Working Groups – Clusters relatedness examples .................................... 162
Table 30: Monterrey-Saltillo region cluster identification ....................................................................... 168
Table 31: Tijuana-Tecate-Mexicali region cluster identification ............................................................ 169
Table 32: NEM-MEX international cooperation priorities .............................................................................. 210
Table 33: Internet of Things Units Installed Base by Category (Millions of Units) ........................................ 220
Table 34: Internet of Things Endpoint Spending by Category (Billions of Dollars) ....................................... 220
Table 35: SMART_CITIES-MEX international cooperation priorities ............................................................ 236
Table 36: INDUSTRY 4.0 – MEX TWG Research Priorities ......................................................................... 245
Table 37: Dynamic cross-sectoral linkages related to Environmental Industries .......................................... 251
Table 38: Mexico’s Evolving Energy Matrix .................................................................................................. 258
Table 39: ENERGY-MEX international cooperation priorities ....................................................................... 263
Table 40: Participants in the European SEAS Project .................................................................................. 266


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Contributors
The editor of the SRIA 2016 is Alfredo Sánchez of QoS Labs in Mexico City, in collaboration with
Miguel Ramirez of ITESM Campus Mexico (MTP), Oscar Rivera Arenas of ProSoftware in Mexico
City (MTP), Jorge Buitrón of TI Mobile in Querétaro (MTP/eMOBILITY-MEX), Alfredo Lango of
Grupo Momo (NEM-MEX), Luis Cuéllar of Softtek in Nuevo León (NESSI-MEX), Guillermina
Avendaño of FUMEC in Mexico City (ARTEMIS-MEX), Cuauhtémoc Acevedo of Strat in
Querétaro (SMART_CITIES-MEX), Francisco Castañeda of INNCOMEX in Jalisco (ROBOTICS-
MEX), Rogelio García of PROTECSA in Durango (PHOTONICS-MEX), Luis Aguirre of Green
Momentum in Mexico City and Johny Fausto del Castillo of Grupo SESICOMP in Querétaro
(ENERGY-MEX).


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Acronyms
ARTEMIS-MEX Embedded System Thematic Working Group of Mexico
CONECTA 2020 COoperation and NEtworking between Latin America, the Caribbean and Europe to
Coordinate Research Opportunities around ICT and Horizon 2020 challenges via
Technology PlAtforms
ETP European Technology Platform
FI Future Internet
FIRST Implementing Cooperation on Future Internet and ICT
Components between Europe and Latin America
FP7 European Seventh Framework Programme
GDP Gross Domestic Product
GERD Gross Domestic Expenditures on R&D
GPS Global Positioning System
H2020 European Horizon 2020 Program
ICT Information & Communication Technology
KLEMS Analysis of capital (K), Labour (L), Energy (E), Materials (M) and Service (S) inputs
LAC Latin America and the Caribbean
LatAm Latin America
LATP Latin American Platform
MTP Mexican Technology Platform
MSME Micro, Small and Medium Enterprise
NEM-MEX Network Electronic Media Thematic Working Group of Mexico
NESSI-MEX Networked Software and Service Initiative of Mexico
NGO Non-Government Organization
PPP Public-Private Partnership


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PDP Program to Democratize Productivity
R&D+i Research, Development and Innovation
SRA Strategic Research Agenda
SRIA Strategic Research and Innovation Agenda
STI Science, Technology and Innovation
SME Small and Medium Enterprise
TP Technology Platform
TPF Total Factor Productivity
TWG Thematic Working Group


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Executive Summary
The primary objective of the Mexican Technology Platform (MTP) is to raise the competitiveness
of the Mexican industry through the identification of common priorities, challenges and research
goals. In this sense, it is essential to have commonly agreed strategic research lines for which
industry and academia define common actions in the R&D+i domain in order to increase Mexico’s
innovation and competitiveness rankings.
The Strategic Research & Innovation Agenda (SRIA) is an important guide for industry and
academia, as well as a reference document for the development of public policy in Mexico. It is a
support tool for decision makers and will serve as a reference also to international partners to
seek common ground to encourage joint cooperation programs. Therefore, research priorities will
be identified considering their long-term strategic value for national and international
stakeholders.
The MTP scope of activities includes:
• Developing a Strategic Research & Innovation Agenda (SRIA) for Mexico;
• Identifying strategic requirements for an open innovation ecosystem;
• Promoting industry-led communication among stakeholders of the Mexican innovation
ecosystem for research, development, and education actions to improve Science,
Technology and Innovation;
• Promoting the SRIA through coordination with government and international peers;
• Facilitating international collaboration, access, and interoperability; and,
• Ensuring that activities of the MTP are communicated to member organizations.


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Introduction
Empirical studies have demonstrated that firms collaborating on R&D are more innovative than
those that do not, and this is particularly true for technologically intensive industries where
interrelatedness and complexity is high or where the knowledge base is multidisciplinary and
widely dispersed. Furthermore, small firms in particular have been able to take advantage of
networks in order to overcome the disadvantages of their size.1
Mexico is a leading economy in Latin America and has a large growth potential as an emerging
partner of the North America economic region and a member of the North American Free Trade
Agreement (NAFTA), the OECD, and G20. In many ways, Mexico is a society evolving towards a
more advanced stage of development. One of the main obstacles on this path is the social
challenges that it faces. Mexico, as a leading LatAm economy and its present level of income,
can mobilize important national resources to attain its development objectives. Industry and
academia stakeholders across Mexico have worked on analysing Mexico’s socioeconomic
environment challenges and have participated in open discussions to define innovation strategic
lines in various research fields to face these challenges that are compiled in this SRIA.
• Population of 120 million
• Median age 26 years.
• 14th largest economy.
• 4th in Global Location Index (5.9)*
• 11 Free Trade Agreements, privileged access to 43 countries
• Part of the largest economic bloc in the world NAFTA.
• Recent Structural Reforms.
• SMEs are currently the fastest growing segment of the economy.
• According to OECD, Mexico produced approximately 90,000 engineers
in 2014, half of the number produced in the US.
• No longer considered an emerging economy, rather Mexico is viewed as a converging economy
The Mexican Technology Platform (MTP) was created with an global vision. It is an outstanding
outcome of European Support Action FIRST funded by the Seventh Framework Programme

1
Strategy For European Technology Platforms: ETP 2020 – Commission Staff Working Document


Page23
(FP7) to foster EU-LatAm cooperation. Project FIRST purpose aimed at enhancing cooperation
between Latin America and Europe, through the creation of Latin American Technology Platforms
(LATPs), adapting the core principles of a European Technology Platform to LatAm regional
socioeconomic conditions. The LATP model adopted and refined by the MTP is being shared and
enriched with other LATPs, opening tangible cooperation opportunities with Europe and within
Latin America.
Mexico’s challenges on social cohesion and insufficient infrastructure, innovation content and
SME competitiveness require an integrated public-private approach. The main role of the MTP is
to identify and promote R&D+i territorial strategies, understanding sub-national, national and
international conditions and global trends and focusing on alignment of existing programmes at
regional, federal and international levels under new knowledge structures such as those of
Technology Platforms and innovation clusters. National and international actions and priorities
are based on the knowledge structure of Technology Platforms, a vehicle well known to the
European Union to define public policy oriented to fostering R&D+i. Regional actions and
priorities are based on the knowledge structure of innovation clusters as a vehicle for economic
development popular in North America and the European Union, adopting strategies for smart
specializations and internationalization aligned with national productivity/innovation priorities.
The MTP Strategic Research & Innovation Agenda (SRIA) defines its overall goals around
Mexico’s socioeconomic challenges. Technical and non-technical priorities and domains of
innovation specialization are identified by Public-Private Partnership (PPP) under common vision,
objectives and a contextual framework that considers Mexico’s strengths, weaknesses,
opportunities, and threats within a realistic territorial research and innovation landscape.
Contents of the MTP SRIA 2015 were compiled by industry and academia stakeholders from
different states of Mexico with the objective of providing policy recommendations, as well as an
R&D+i practical guidance on areas of opportunity. Being ICT a key enabler of innovation, its


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interaction with diverse industry sectors in Mexico—mature, dynamic and emerging as defined
by the Secretariat of Economy PRODEINN Program—is built into the core of this SRIA.
The MTP SRIA provides a high level strategic overview for Mexico’s entrepreneurship and
innovation community. Its use aims at bolstering high-impact entrepreneurship, guiding the
research community, large corporations, economic development organizations, and clusters to
identify, share and complement common innovation initiatives, providing feedback to national and
sub-national public policy, and increasing cooperation with other countries open to collaborate
with Mexico by using a common language within the scope of global market trends and
opportunities that generate positive impacts to our societies.


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1. Technology Platforms
Technology Platforms are a new form of knowledge-oriented organizations that convene key
stakeholders of society to agree on large territorial research and innovation vision and objectives
that impact socioeconomic development. Past assessments carried out in the past acknowledged
the success of TPs as economic development vehicles enabled by Public-Private Partnerships
(PPPs) focused on co-creating joint visions, setting territorial Strategic Research Agendas and
contributing to the definition of territorial research priorities.
Due to their demand-driven nature, key industrial concerns in the field in question play a leading
role in initiating and advancing the TP. Nevertheless, to be effective, the platform approach is
inclusive and mobilises the efforts of all key stakeholders. These typically include:2
• Industry (large, medium and small, embracing the whole production and supply chain)
• Public authorities (given their role of policy-makers and funding agencies, as well as
promoters and consumers of technologies)
• Research institutes and the academic community
• Financial community (e.g. Venture capital organisations and the European Investment
Bank)
• Civil society, including users and consumers
The following guidelines apply to any TP:
• Be an independent non-profit organization.
• Define Technology Platform vision and mission taking a holistic view with strategic insights
into market opportunities for commercial deployment of R&D+i, developing strategies and
partnerships, enabling knowledge transfer to a wide range of innovation stakeholders.
• Industry leadership.
• Convene key universities, research centres, large companies, SMEs and other (in most
cases including ministerial boards or associations).
• Invite government as observer.

2
ftp://ftp.cordis.europa.eu/pub/etp/docs/faq_en.pdf


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• Define their own governance structures, ensuring the fulfillment of its objectives.
• Interact openly with other TPs.
• Develop an SRIA clearly defining its Strategic Lines focused on territorial economic
sectors and activities.
Members of a TP are classified by type of organisation in five main categories:
• Universities
• Research Centres
• Large Companies (manufacturers, financial companies,
• SMEs (including micro enterprises)
• Other (including ministerial boards and NGOs)
1.1 European Technology Platforms (ETP)
European Technology Platforms (ETPs) are industry-led stakeholder fora recognised by the
European Commission as key actors in driving innovation, knowledge transfer and European
competitiveness. ETPs develop research and innovation agendas and roadmaps for action at EU
and national level to be supported by both private and public funding. They mobilise stakeholders
to deliver on agreed priorities and share information across the EU.3
Building on the strategies for Europe 2020 and for an Innovation Union, the Commission's
Horizon 2020 proposal for an integrated research and innovation framework programme
recognises the role of European Technology Platforms (ETPs) as part of the external advice and
societal engagement needed to implement Horizon 2020.
In the EU, the Commission participates in ETP events as an observer and is committed to a
structured dialogue on research priorities. All ETPs have brought together stakeholders, reached
consensus on a common vision and established (and in some cases already revised) a Strategic

3
http://ec.europa.eu/research/innovation-union/index_en.cfm?pg=etp


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Research and Innovation Agenda (SRIA). Some of them have also developed an implementation
plan detailing actions required to implement their SRIA.
1.1.1. The Vision
European Technology Platforms will be a key element in the European innovation ecosystem and
will help turn Europe into an Innovation Union. To do this, ETPs will have to take a holistic view,
identifying the pathway to commercial deployment of research, provide strategic insights into
market opportunities and needs, and mobilise and network innovation actors across the EU in
order to enable European companies gain a competitive advantage in global markets.
1.1.2. The Mission
ETPs have a strategy, mobilisation and dissemination function. In order to fulfill their role, their
main activities encompass:4
• developing industry-focused strategic research and innovation agendas including
technology roadmaps and implementation plans;
• encouraging industry participation in Horizon 2020, the EU’s framework programme for
research and innovation, and cooperating with networks in Member States;
• fostering networking opportunities with other ETPs and other partners along the value
chain to address cross-sectoral challenges and promote the move towards more open
models of innovation;
• identifying opportunities for international cooperation;
• acting as one of the channels of external advice for the programming and
implementation of Horizon 2020; notably, ETPs have been a key driving force behind
the launch of high profile public-private partnerships under the programme.
1.1.3. Core activities
The objectives of the ETPs will be achieved through the following activities, which can be broadly
categorised as: 5
• Developing Strategic Research and Innovation Agendas including technology
roadmaps and their implementation plans, taking into account the corresponding

4
http://ec.europa.eu/research/innovation-union/index_en.cfm?pg=etp
5


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sector policy objectives and the potential economic, social and environmental impacts.
The agendas will focus on those actions with impact on the market and will propose
timeframes for expected outcomes. They will also include regulatory as well as other
non-technological barriers such as business models, skills requirements etc.;
• Encouraging industry participation in Horizon 2020 and helping widen participation and
build capabilities within Member States through cooperation with networks/
partnerships in Member States. This includes identifying opportunities for partnership
in the framework of Research and Innovation Strategies for Smart Specialisation
implemented in the context of the EU Cohesion policy;
• Identifying opportunities for international cooperation and developing the necessary
understanding to facilitate future collaboration;
• Providing networking opportunities including with other ETPs to address cross-sectoral
challenges and promote the move towards more open models of innovation, by
providing opportunities for stakeholders to meet, exchange knowledge, make new
contacts and develop ideas for working in partnership;
• Facilitating the formation of new partnerships that utilise ETP expertise to, for
example, identify parties that can work together to exploit the outcomes of a research
project or address a specific challenge.
This will require the industry-led and focused ETPs to be inclusive and representative of
businesses, research organisations and universities in their respective fields and to be open to
new members. They will have to work in close partnership with Member States and Member
State based networks as well as with countries associated4 with the framework programme,
where appropriate. The ETPs will also need to actively work with one another and engage with
stakeholders, including those along the value chain, NGOs, social platforms and
consumer/societal groups, as appropriate, to address wider challenges and foster solutions that
are socially responsible, inclusive and sustainable.6

6


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1.1.4. ETP life cycle
Figure 1: European Technology Platform Life Cycle
While each Technology Platform has its own approach, strategic lines and particular ways of
working, they normally follow a “three-stage” development process:7
• Stage 1: Stakeholders getting together in order to establish their “vision” for the future
development of the field concerned and to set up the technology platform;
• Stage 2: Stakeholders define a Strategic Research Agenda setting out their common
views on the necessary medium to long term research, development and
demonstration needs for this technology;
• Stage 3: Implementation of the Strategic Research Agenda - for which, in many
instances, it is anticipated that significant public and private investments will need to
be mobilised.
1.1.5. Individual ETPs
Commission engagement with the individual ETPs takes a number of forms:

7
ftp://ftp.cordis.europa.eu/pub/etp/docs/faq_en.pdf


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• provision of a central contact point with overall coordination responsibility in Directorate-
General Research and Innovation
• a dedicated contact point for individual ETPs in the relevant Directorate-General
• participation in ETP-organised events
• consultation on implementation aspects of Horizon 2020
• organisation of cross-ETP workshops
Figure 2: Individual European Technology Platforms
1.2 Latin American Technology Platforms (LATP)
Some European Member States have established national Technology Platforms to mirror ETPs:
some to build capability and enable their research communities to influence and participate in
European activities, others to align their activities with the shared strategic vision.8
The same
concept has been recently promoted in Latin America.

8


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1.2.1 Project FIRST
The European Commission launched the European Support Action "Implementing Cooperation in
Future Internet and ICT Components between Europe and Latin America" (Project FIRST) funded
by the 7th Framework Program. The first Latin American Technology Platforms were created
during the years of 2010 and 2011 under Project FIRST.
The main objective was to implement Latin American Technology Platforms (LATPs) based on
the proven European Technology Platform (ETP) model, convening key entities representing
government, academia, and industry focused on R&D+i.
Figure 3: Project FIRST Evaluation Meetings in Mexico City (February 2012)
Support Action FIRST looked at the overall ICT field with a special focus on themes related to FI
[7] to foster EU-LatAm cooperation on all Future Interent-related themes, having one TWG per
thematic area where potential has been identified.
Figure 4: Project FIRST ETP-LATP Mapping


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The proposed roles within the LATPs reflect the European practice. The main difference relates
to the research focus of the proposed working groups. Whereas European TPs are already
geared to a specific research areas, LATPs are established around overall national priorities
generally focused on Future Internet, ICT Components and Systems, and it is at this level of
thematic working areas that research strategies are addressed. These areas may correspond to
one or more ETPs based on each LATP’s Strategic Research and Innovation Agenda (SRIA).
1.2.2 The LATP structure
The structure of a LATP involves the creation of Thematic Working Groups (TWGs) that define
specific strategic lines in research areas, to contribute to a national SRIA that provides feedback
to policy makers for national strategies and defines international research cooperation priorities of
each Latin American country.
Figure 5: Latin American Technology Platform structure
A LATP is formed by the following bodies:
• Steering Board: The Steering Board composition reflects the research & innovation
ecosystem of the country. It is the main governance body of a LATP. While LATPs will
choose autonomously their own internal organisation. The Steering Board composition is
proposed independently by each country, paying attention to a balance between different
types of organisations and the representation of different sectors. Steering Boards can be
composed by a relatively large group of organisations (usually a minimum of 15 to 20
organisations formed by government, NGOs, Chambers, Research Centres, Universities


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and industry) and tend to represent a varied mix of entities active in common LATP
objectives related to innovation (large industry, SMEs, research centres, universities, etc.).
• Secretariat: Coordinates communications between Steering Board and TWGs to
harmonize and facilitate internal work to support project development. It follows up on all
operational issues and deliverables approved by the Steering Committee in its Assembly
meetings. Is formed by an average of 6 Steering Board members, including
representatives of industry and academia, and meets frequently. Is responsible for
planning LATP Steering Council Assemblies and promoting the use of open innovation
methodologies.
• Thematic Working Group (TWG): The essence of the LATP is identifying strategic
research lines in innovation specialization areas and generating opportunities that
respond to actual market requirements, convening companies, researchers and
professionals in common areas of interest willing to address those requirements.
Inividuals or organisations appointed as TWG leaders are automatically proposed as
members of the LATP Steering Board.
• Observers: An observer is in most cases an entity that does not perform R&D activities,
but that can somehow support or disseminate the activities of TWGs. This can be a
governmental body, policy makers, an association, chamber or similar. Observers do not
participate in TWG daily activities and are invited to join the Steering Council of the LATP
in this very same observer role.
The LATP General Assembly is a meeting open to all official members and observers. External
organisations can be invited on a case-by-case basis. Official government representatives are
permanently invited as Observers to the meetings. Taking the results to the Steering Council
provides guidance and feedback so that new trends are timely recognized by the public entities of
the council, enabling to identify and promote support programmes for members of the LATP.
1.2.3 What is a Thematic Working Group? (TWG)
TWGs specialize on research initiatives that represent national priorities, convening member
organizations representing academia, industry and government.


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TWGs are created under a vision and mission established by their leaders through general LATP
guidelines and internal discussion with their members to define requirements, opportunities,
priorities and objectives, and compile them in the Strategic Research & Innovation Agenda
(SRIA) of the group.
Latin American TWGs dedicate their efforts to define potential innovation areas and foster
national research and international cooperation around those areas. TWGs define strategic
research lines around which the main objective is to develop an inside dynamic that allows the
instrumentation of new initiatives with high impacts for the country, creating awareness of global
trends as well as national and international market demand.
1.2.3.1 Main characteristics of a TWG
TWG´s are created by means of identifying the critical mass needed for any industrial sector in a
country. This mass of companies will be guided by an expert group for implementing innovation
activities inside their operational actions and also to participate in the group looking for
international cooperation. The TWG represent specific thematic areas related to strategic
industrial sectors requiring ICT within the innovation ecosystem in the country. The main
characteristics of TWGs are:
• Composed by: companies, universities, research centers and other public and private
entities.
• The group leader is the entity with more will and dedication to coordinate the operative
actions for the TWG in sense of getting the projected goals and fulfillment of the mission
and vision.
• Each TWG defines its own structure under their needs and representing all of its
members.
• The communication of the group relays on the appointment of leaders whose coordination
role is crucial for the future and impact of the group, requiring commitment to the
responsibilities that they acquire.


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Each TWG follow clear governance rules defined by the Steering Council with the goal of helping
members locate and participate in national and international initiatives developing consortia for
innovation projects.
1.2.3.2 The TWG process
Understanding TWGs as smaller groups of LATP members divided by specific domains of
research to discuss thematic strategic lines and to cooperate on issues of common interest, this
is the process they follow:
Figure 6: Thematic Working Group creation process
The integration of a TWG is a simple and effective process aimed at creating a dynamic
interaction and set of activities among TWG members. Online tools respond to the need for target
communications among stakeholders, making possible a faster exchange of information and
Leader Identification
Strategy definition
First national meeting
to recognize
capabilities and
strategic research lines
Internal TWG meetings
External national &
international meetings
Presentation of results
to Steering Council
LATP webpage
Match Making Tool


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improving matchmaking processes among LATP members. With these capabilities in mind, it will
be simpler to react to innovation research opportunities that could bring benefits to TWG
members. Periodic upgrade of the research and innovation lines is of outmost importance as the
group consolidates its position within its area of specialization and national priorities change as a
function of technology and market trends.
It is expected for TWG members to have meetings with external national and international entities
for the exchange of ideas and best practices that will enhance research cooperation and will open
opportunities for participating SMEs and large corporations that can form part in global projects
and can find new markets and new partners through the LATP-ETP matchmaking capabilities.
1.2.4 LATP general guidelines
The following are relevant guidelines that apply to TWGs as recommended by the CONECTA
2020 framework:
• A Thematic Working Group (TWG) is a smaller group of LATP members that cooperate on
issues of common interest. They are created around innovation areas that may
correspond to Future Internet and Energy themes related to established ETPs or to cross-
cutting themes that can be associated to two or more existing ETPs. Aside from that, roles
and proposed bodies within the LATPs are very similar to the ones operating in ETPs.
• A LATP member is an organisation related to R&D+i activities (large company, SME,
research centre, university) that takes part in a Technology Platform. All members must be
part of at least one TWG. There is no limitation to one organisation taking part in more
than one working group, provided the thematic domain falls within its fields of research
activities and expertise. Individual members have a single vote when they form part of the
General Assembly.
• Founding members must make sure that there is enough critical mass at the launch of the
LATPs. Creating several Technology Platforms in one country would multiply common
efforts and infrastructures, and would disperse and probably minimise the results.


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• Steering Committee must make sure that work within the LATPs is well organised around
themes that are shared also in the international landscape and well structured as it is the
case in ETPs, so as to facilitate potential collaboration in a rapid and fluent way.
• TWGs might eventually give themselves further internal rules of governance for the
specific Strategic Lines of the Group based on regulatory or other issues, or get organised
into sub-working groups when more specific issues need to be addressed.
• Each working group should have at least one Thematic Working Group Coordinator within
its members. TWGs coordination may be performed by one or several entities organized
in an Executive Committee.
• In order to generate a reference framework, LATP/TWG-ETP workgroups will define
specific areas of cooperation that result from their interaction via physical and virtual
meetings (usually through the use of a tool such as Skype). This interaction and “physical
realm" experience will evolve into collaboration within a virtual environment (matchmaking
tool).
Figure 7: Thematic Working Group cooperation process
LATP’s must focus on the following issues required to build a trusted entity under global criteria:
• LATP Structure: Proposed TWGs (“Grupos Temáticos” in Spanish) and their coordinators,
identifying the research areas in which TWGs are focused, together with the indication of
the organisation that initially takes responsibility for coordinating activities within each
TWG.


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• Legal entity incorporation: LATPs must be incorporated as Non-Governmental
Organizations (NGO) in their countries with legal representation of their Public-Private
Partnership in order have a legal identity to sign agreements (strategic alliances,
participation in support programmes, etc.)
• LATP Membership: A list of LATP member organisations must be published. With the
exception of “observers” that do not take part into technical work at the level of Working
Groups, all organisations are proposed as members of at least one working group
corresponding to the area of their main expertise.
• LATP dissemination: LATP SRIA and its research strategic lines and international
cooperation priorities must be disseminated through events, the matchmaking tool, social
networks, and other means aimed at providing public policy feedback and fostering
cooperation.
2.Mexico: great potential and challenges for innovation
Mexico has increased over past years its commitment to fostering entrepreneurship and
accelerating innovation. Beginning in the 1990s, the country launched several programmes and
initiatives through its National Science and Technology Council (CONACYT) to advance the role
of science and technology. In 2012, the Government of Mexico established a seed fund through
the state run development bank, National Financial (NAFIN) for investment in high-tech startups.
In January 2013, the country created the National Entrepreneur Institute (INADEM), an
administrative body within the Secretariat of Economy to support small and medium size
businesses. Also in that year, Mexico and the United States launched a joint Entrepreneurship
and Innovation Council (MUSEIC) to “enhance regional competitiveness by strengthening the
North American high-impact entrepreneur ecosystem.” In 2014, the Mexican government
increased funding for research through CONACYT this year to US$230 million, up from US$130
million last year. Even so, greater institutional, legal, and fiscal support is needed to create a solid


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foundation for innovation to thrive. Innovation development is new to Mexico, so policy makers
have many opportunities to promote and expand the country’s knowledge-based economy.9
Figure 8: Top 30 Rankings - Global Services Location Index
(Source: A.T. Kearny)
With its large pool of skilled labor, Latin America offers increasingly attractive options across the
Global Services Location Index spectrum. Mainstays Mexico and Brazil continue to lead, and new
entrant Colombia appears in the index for the first time this year. Mexico (4) reaches its highest
level ever, reinforcing the advances it is making in the industry and the success it enjoys as a
nearshore option for U.S. companies. The premier destination in Latin America, Mexico benefits
from reasonable costs and a large, well educated labor force that are feeding the growing
industry. Guadalajara in particular offers low labor costs and an extremely strong talent pool
capable of supporting large captive centers for multinationals such as Dell, IBM, and Oracle.10

9
Wilson Center Mexico Institute - Fostering Innovation in Mexico: Ideas from the High-Level Innovation Forum for Policy Makers
(2014)
10
A.T. Kearny 2014 Global Services Location Index


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Mexico still lacks diverse and sophisticated financial mechanisms. An insufficient incentive for the
development, protection and commercialization of intellectual property in Mexico is still a
challenge. According to the Mexican Industrial Protection Institute (IMPI), Mexico has a
comparatively low number of patent filings by Mexican citizens (8% during 2013). This is mostly
attributed to the limited information currently available for independent technology developers,
limited incentives for research centers and the ineffective enforcement of intellectual property
protection laws. However, according to the World Intellectual Property Organization (WIPO)
Mexico has accounted, on average, for about 5% of the total patents filed by country of origin
within the first decade of the current century.
In response to these challenges, Mexico has embarked on an ambitious reform drive, with the
objective to foster foreign investment and improve the economy.
Table 1: Progress on Mexico’s structural reforms
(Source: OECD)
11

11
OECD Economic Surveys: Mexico - January 2015


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Three structural reforms that were passed by congress can impact Mexico’s productivity and
competitiveness rankings in the future:
• Telecoms: limiting monopolies
• Financial: Increasing bank lending
• Energy: profit sharing contracts
2.1 National Development Plan 2013-2019
According to the OECD, productivity will be the key driver of future growth but there is an
uncertain outlook. If we compare GDP per capita of 2013 data, Mexico ranks last in the upper half
of the OECD countries.
Figure 9: Percentage GDP per capita OECD upper half countries differences


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Figure 10: GDP per capita differences showing labour productivity gaps
Figure 11: Percentage GDP per capita OECD upper half countries differences
The National Development Plan 2013- - 2018 of the Mexican Federal Government published on
August 30th
2013 defines the “Democratize Productivity” transversal strategy with 5 Objectives, 19


Page43
strategies PROSOFT 115 courses of action to democratize productivity. It involves 20 agencies
and entities of the Public Federal Administration (PFA).12
Figure 12: National Development Plan 2013 – 2018
The Program to Democratize Productivity (PDP) objectives and strategies are:
Objective 1. Promoting efficient use and allocation of production factors
• Strengthening labor markets by promoting formal employment.
• Promoting capital flows towards productive endeavors.
• Promoting efficient use of the National territory.
• Efficient handling of natural capital and environment protection.
• Augmenting investments in human capital.
Objective 2. Rising productivity of workers, enterprises and producers
• Strengthening labor training activities
• Promoting entrepreneurship and productive diversification (micro, small and medium
enterprises).
• Rising productivity of small rural producers.
• Rising public Investment and promote private investment in Science, Technology and
Innovation (STI)
Objective 3. Strengthening business environment for enterprises and producers
• Promoting a business environment to create formal enterprises.
• Legal Certainty for economic agents and reducing levels of insecurity in the productive
sector.
• Rising efficiency of producers of key inputs to reduce costs.

12
http://pnd.gob.mx


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• Promoting investments in infrastructure.
• Taking advantage of Mexico’s integration into the world economy.
Objective 4. Establishing public policies that raise productivity across economic sectors
• Promoting an organized structural change.
• Strengthening the institutional set up to promote public policies aimed to raise and
democratize productivity.
• Orient programmes and public outlays towards the objective of rising and democratize
productivity.
Objective 5. Strengthening design and evaluation of public policies to democratize
productivity
• Implementing an agenda to articulate several programs.
• Active Involvement of society: workers, producers.
• Business community, local governments and academic Institutions.
• Consolidating the institutional framework to promote productivity policies at federal, state
and municipal.
The PDP includes the Total Factor Productivity (TPF) as part of its cross-sectoral axis. The TPF
represents a statistical tool used by decision makers in designing of economic and industrial
policy of the country. Mexico is the first country in Latin America to have a TPF indicator under
the KLEMS model (analysis of capital (K), labour (L), energy (E), materials (M) and service (S)
inputs), which was released through Mexico’s National Institute of Statistics & Geography
(INEGI). Mexico joins the group of 30 nations that have a KLEMS database, as it was released
on August 12th
, 2013. The European Union DG ECFIN uses KLEMS to create individual country
spreadsheets with industry level growth accounting tables covering:13
1 Value added, labour productivity and labour input growth rates
2 Value added and labour input shares
3 Contributions to value added, labour input and labour productivity
4 Value added growth accounting, with a breakdown into the contributions from labour
services, capital services and total factor productivity (TFP)

13
http://ec.europa.eu/economy_finance/db_indicators/eu_klems/index_en.htm


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5 Labour productivity growth accounting, with a breakdown into the contributions from
human capital improvements (i.e. labour composition effects); ICT and non-ICT capital
deepening; and total factor productivity (TFP)
Figure 13: TFP by Economic Activity
(Source: INEGI)
For period 1990-2011 TFP of the Mexican economy is negative (-0.39%)
Figure 14: TFP Contribution of Capital Services
(Source: INEGI)


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The activity with the highest TFP "Information in Mass Media" (2.71%), for which the contribution
of capital is 2.22% and of labor is 0.75%. The activity with the lowest TFP is "Professional
Services" (-4.58%) showing a 3.38% contribution of capital and 2.03% contribution of labor.
Figure 15: TFP Contribution of Labor Services
(Source: INEGI)
The National Development Plan outlines the importance of these results in the monitoring of the
objectives and goals of the programmes to increase the productivity of the Mexican Government.
Figure 16: Growth Diagnostic according to PDP
(Source: INEGI)


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As part of the actions to respond to the PDP objective of “Strengthening design and evaluation of
public policies to democratize productivity”, Mexico created the National Productivity Committee
and the Business Council for Growth promoting active Involvement of society in productivity
policies. The Law to Promote the Sustained Increase of Productivity and Competitiveness of the
Mexican Economy was enacted in June 2015. Among its contents: the following fractions of its
Article 3 are of particular interest for the purposes of the MTP SRIA:
I. Implement a national policy of economic development aimed at promoting the
sustained increase in productivity and competitiveness;
II. Boost concurrent and concerted actions among the public, social and private sectors,;
III. Articulate and coordinate with transverse, sectoral and regional focus, the design and
implementation of policies, programmes and projects;
IV. Promote an increase in Total Productivity Factor of the national economy, as well as of
specific sectors and regions;
V. Boost the creation of formal jobs and a greater flow of capital and financing to projects
and activities with potential for high productive growth;
VI. Boost public, private and social investment in Infrastructure, human capital, job
training, skills of entrepreneurs and workers;
VII. Foster the integration of productive chains of greater added value.
In Mexico large income gaps prevail across regions. Nuevo Leon exhibits levels of productivity
similar to those of South Korea, while in Guerrero and Chiapas they remain below Honduras'.
These large disparities reproduce as a fractal even as we break into smaller geographical units:
Tuxtla Gutierrez, the capital of Chiapas, has eight times the income of Aldama and Mitontic, its
poorest municipalities. The Mexican Atlas of Economic Complexity is a diagnostic tool that firms,
investors and policymakers can use to improve the productivity of states, cities and municipalities.
It maps the geographical distribution of Mexico’s productive activities and employment by state,
metropolitan area and municipality, and identifies exports and industries of potential to increase
economic complexity and accelerate growth.14

14
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Figure 17: Mexico Economic Complexity
(Source: Observatory of Economic Complexity of MIT)
In 2013, Mexico was the 15th largest export economy in the world and the 23rd most complex
economy according to the Economic Complexity Index (ECI). Mexico exported that year $379B
and imported $355B, resulting in a positive trade balance of $24.3B. In 2013 the GDP of Mexico
was $1.26T and its GDP per capita was $16.4k. The top exports of Mexico are Crude Petroleum
($41.6B), Cars ($33.2B), Vehicle Parts ($20.9B), Delivery Trucks ($19.1B) and Computers
($17.1B), using the 1992 revision of the HS (Harmonized System) classification. Its top imports
are Refined Petroleum ($23.8B), Vehicle Parts ($20.6B), Integrated Circuits ($11.7B), Computers
($9.6B) and Cars ($8.46B). The top export destinations of Mexico are the United States ($269B),
Canada ($23.6B), China ($7.76B), Spain ($7.31B) and Brazil ($5.81B). The top import origins are
the United States ($180B), China ($56.7B), Japan ($14.7B), Germany ($12.7B) and South Korea
($12.3B).15
Economic Complexity is a measure of the amount of productive capabilities and knowhow that a
place has. Products are vehicles for knowledge. To make a shirt, one must design it, produce the
fabric, cut it, sew it, pack it, market it and distribute it. For a country to produce shirts, it needs
people who have expertise in each of these areas. Each of these tasks involves many more
capabilities than any one person can master. Only by combining know-how from different people
can any one product be made. The road to economic development involves increasing what a
society knows how to do. Countries with more productive capabilities can make a greater

15
Observatory of Economic Complexity - MIT


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diversity of products. Economic growth occurs when countries develop the capabilities and
productive knowledge to produce more, and more complex, products.16
Table 2: Top States’ Economic Complexity
(Source: Atlas of Economic Complexity of Mexico - GDP numbers in Mexican Pesos)
The National Productivity Committee is a public-private body which goal is to define actions that
generate an economic environment that will allow Mexican companies to compete successfully in
the globalized world.
2.2 Innovative Development Program 2013-2018 (PRODEINN)
The Innovative development Program (PRODEINN) was built from the objectives of the National
Development Plan 2013-2018 promoted by the Secretariat of Economy (SE), serving as
cornerstone of the industrial development policy characterized by a next-generation perspective
aimed at allowing Mexico to face the specific challenges of each industry.
The Program is built through joint strategies that focus on increasing productivity in mature
sectors such as Textiles, Steel and Agrifood, that are a fundamental part of the national industry;
strengthening competitiveness in dynamic sectors such as Automotive and Aerospace, the vast
majority of which are integrated into global value chains; promoting the consolidation of emerging

16
datos.gob.mx – Atlas de Complejidad Económica

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