Mexico's Transition to a Knowledge-Based Economy

Challenges and Opportunities

Carl J Dahlman, Yevgeny Kuznetsov

• Publisher: World Bank Publications
• Year: 2008
• Topic: Economics
• eBook ISBN:
  9780821369227
• Subtopic: Development Economics
• Index: Economics

Unlock Mexico's Economic Potential in the Knowledge Era. This insightful study examines Mexico's journey toward a knowledge-based economy, revealing both challenges and opportunities for sustainable growth.

Authored by experts Yevgeny Kuznetsov and Carl Dahlman, this volume provides strategies for enhancing Mexico's competitiveness through innovation, education reform, and strategic investment in ICT infrastructure. Discover how Mexico can leverage its regional diversity and existing strengths to transform its economy and improve the lives of its citizens.

• Understand the key sources of growth in the global knowledge economy
• Identify challenges and opportunities for Mexico's economic transformation
• Explore strategies for enhancing competitiveness through innovation and education
• Learn how to promote regional development and overcome institutional rigidities

For policymakers, economists, business leaders, and academics interested in Mexico's economic future.

Table of contents

• Contents
• Foreword
• Acknowledgments
• Abbreviations and Acronyms
• Part I. Need for a Transition to Knowledge-Based Economy
• Part II. Major Policy Issues
• Part III. Implementation Options
• Annexes
• Bibliography
• Box 1.1 Health Care Services as a Global Opportunity: Lessons from India
• Box 3.1 Discretionary Differences among Firms: The Automotive Industry
• Box 3.2 Three Types of Players in Mexico’s Automotive Sector
• Box 3.3 Innovation through Interorganizational Networks
• Box 3.4 Improving Decentralized Sectoral and Regional Funds
• Box 3.5 Ireland’s National Linkage Program (1987–1992)
• Box 3.6 The Switching Period in Supplier Development in the Mexican Garment Industry
• Box 4.1 Structure of Mexico’s Education System
• Box 4.2 Higher Education and Quality Control Mechanisms in Chile and Brazil
• Box 4.3 Mexico’s Proactive Approach to Supporting Small- and Medium-Size Enterprises
• Box 4.4 Achieving Change at the Margin: Charging Tuition Fees at Mexican Universities
• Box 5.1 Telecommunications and the WTO: The Case of Mexico
• Box 6.1 The Republic of Korea’s Transition to a Knowledge Economy: From Vision to Implementation
• Box 6.2 The Fundación Chile Model and Its Relevance for Mexico
• Box 6.3 Monterrey Institute of Technology and TecMilenio: Educational Spin-off as a Model of Lifelong Learning
• Box 6.4 Quasi-Rents as a Motivation for Concerted Action
• Box 7.1 Transition to Knowledge Economy: Example of Aguas Calientes
• Box 7.2 Adoption of Organizational Knowledge: Innovative Supplier Development Program
• Box 7.3 Culture as a Key Intangible: Potential of High Value-Added Tourism
• Box 7.4 Scan Globally, Experiment Locally: Developing Managerial Capability
• Figure 1.1 GDP per Capita Growth in the Republic of Korea and Mexico, 1960–2002
• Figure 1.2 Four Projections of Mexico’s Real GDP per Capita, 2001–2020
• Figure 1.3 Manufacturing Productivity in Mexico, 1993–99
• Figure 1.4 Manufacturing Industries in Mexico: Revealed Comparative Advantage by Technological Intensity
• Figure 1.5 Microeconomic Competitiveness
• Figure 1.6 Patents of U.S. and Foreign Origin Granted by the U.S. Patent Office, 1981–2001
• Figure 1.7 Worldwide Payments and Receipts of Royalty and License Fees, 1970–2002
• Figure 2.1 A Global View of the Knowledge Economy Index
• Figure 2.2 GDP per Capita and Knowledge Economy Index, 2002
• Figure 2.3 Knowledge Scorecards for Mexico and the United States
• Figure 2.4 Mexico’s Performance on the Four Pillars of the Knowledge Economy
• Figure 3.1 Innovation Variables: A Comparison of Mexico and China
• Figure 3.2 Global View of Innovation Performance
• Figure 3.3 Learning Capabilities by Type of Firm
• Figure 3.4 Value Added per Firm in Mexico’s Motor Vehicles and Equipment Sector
• Figure 3.5 Finance and Execution of R&D in Mexico by Sector, 2000
• Figure 3.6 Efficiency of Spending on R&D, Selected OECD Firms, 1985–2000
• Figure 3.7 Organizations Involved in Innovation
• Figure 3.8 Convergence of Enterprise Support and Innovation Programs
• Figure 3.9 Proyecto Innovar as a Possible Hub of U.S.–Mexico Innovation Networks
• Figure 4.1 Mexico’s Education Performance
• Figure 4.2 Mexico and the World: Education
• Figure 4.3 Ratio of Yearly Remuneration, White-Collar to Blue-Collar Workers in Mexico’s Maquiladora Manufacturing Industry, 1988–2000
• Figure 4.4 University Graduates in Engineering and Basic Sciences, 2000
• Figure 4.5 School Enrollment, by Age and Income Group
• Figure 4.6 Forces for Change in Reforming Education
• Figure 5.1 Network Readiness Index, 2003–2004
• Figure 5.2 Benchmarking Mexico’s ICT Performance
• Figure 5.3 ICT Investments as a Share of GDP 2003
• Figure 5.4 Internet Users per 100 Inhabitants, Mexico, Chile, and the Republic of Korea, 1998–2003
• Figure 5.5 Regional Distribution of Main Lines per 100 Inhabitants and GDP per Capita, 2004
• Figure 5.6 Paid TV Subscribers per 1,000 Inhabitants in Mexico, 2004
• Figure 5.7 Incumbent Market Share after Five Years of Competition
• Figure 5.8 International Long-Distance Traffic, 1998–2004
• Figure 6.1 Virtuous Circle of Growth and Reforms
• Figure 6.2 National Supplier Development Program
• Figure 7.1 Mexico: Regional Knowledge Index and GDP per Capita
• Figure 7.2 Knowledge Index by Mexican States
• Figure 7.3 Timeline of Transition to Knowledge-Based Economy in Aguas Calientes
• Table 1.1 World Trade as a Percentage of Global GDP, by Income Level of Country, 1970 and 2001
• Table 1.2 Value Added of Knowledge-Based Industries, OECD Countries
• Table 1.3 Gross Domestic Expenditures on R&D as Percentage of GDP, 1981–2000
• Table 1.4 R&D Spending in Selected Countries, by Income Level
• Table 1.5 Investment in Tangibles and Intangibles, Selected OECD Countries, 1998
• Table 1.6 Payments and Receipts of Royalties and License Fees, Selected Regions and Countries, 2001
• Table 1.7 From First-Generation NAFTA to a Knowledge-Driven, Second-Generation NAFTA
• Table 3.1 Instruments to Support Innovation by Type of Firm
• Table 3.2 The Share in Total Exports of Commodity Groups in Which Mexican Strength Is Concentrated, 1993, 2000
• Table 3.3 Exceptions and Promising Cases of Innovation at Different Levels
• Table 3.4 Federal R&D Expenditures in Mexico by Sector and Subsector, 2001
• Table 3.5 Number of Federal Enterprise Support Programs, by Type and Organization, 2001
• Table 3.6 Program Evaluations
• Table 3.7 Venture Capital in Mexico: Supply and Demand
• Table 4.1 Average Years of Schooling of Adults in OECD Countries, 1980–2000
• Table 4.2 Schooling Completion Rates in Mexico and Dropouts per Year, by Age Group
• Table 4.3 Programme for International Student Assessment, 2000 Results for Selected OECD Countries
• Table 4.4 Higher Education in Mexico: Institutions, Students, and Teachers, 2000–2001
• Table 5.1 ICT Indicators, 2003
• Table 5.2 Technology and Growth for Broadband Internet Access Services (Consumers), 2001–2006
• Table 5.3 Telmex Market Shares
• Table 5.4 Financial Performance of Telecommunications Companies, December 2004
• Table 5.5 Telephone Tariffs in Mexico, 1995–2003
• Table 5.6 Local Prices for Telephone Services in Mexico and Other OECD Countries, 2003
• Table 5.7 Local Loop Prices for Carriers, 2002: E-1 CAPACITY
• Table 5.8 Telephone Prices for Rural Telephony
• Table 6.1 Implementing the Transition: Sequencing Policy Agenda in Innovation, Education, and ICT
• Table 6.2 Fundación Chile as a Model for Fundación Mexico
• Table 7.1 Four Types of States in Mexico and Four Policy Agendas