Research & Innovation
From The Report: Mexico 2014
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As the government attempts to open strategic sectors of the economy to competition and attract more foreign direct investment (FDI), much is also being done to improve science and research as a means to spur innovation. Increased spending, coupled with changes in regulation, is expected to fuel the growth of start-ups and make the business environment more dynamic. The current government has stated its goal to raise annual expenditure on science and technology from its current 0.4% of GDP to at least 1% of GDP by 2018. Upon assuming office in late 2012 President Enrique Peña Nieto also announced the creation of a high-level committee to advise him on scientific matters and assist in designing reforms for the sector. With political discourse increasingly echoing the position that Mexico’s future economic growth will depend on businesses’ capacity for change, research and innovation should gain more prominence in the near future. This chapter includes an interview with Raúl Gallegos, President and CEO, General Electric México.

Articles from this Chapter

Overview

Innovating for the market: Focus on research and facilitating an entrepreneurial environment
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As the government attempts to open strategic sectors of the economy to competition and attract more foreign direct investment (FDI), much is also being done to improve science and research as a means to spur innovation. Increased spending, coupled with changes in regulation, is expected to fuel the growth of start-ups and make the business environment more dynamic. Increased political support for research came as the new president, Enrique Peña Nieto, took office. Days after beginning his presidential term in late 2012, Peña Nieto announced the creation of a high-level committee to advise him on scientific matters and assist in designing…

Analysis

Turning ideas into businesses: Encouraging creativity and providing new ways to access the market
OBG
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On the back of repeated years of economic growth, more and more Mexicans are taking advantage of the macroeconomic stability and sizeable domestic market to create new businesses. An assortment of start-ups has been popping up across the country, especially in places like Guadalajara, Monterrey, Tijuana and within the populous Mexico City, the country’s capital. While it is estimated that 600,000 companies have been established over the last five years, 80% of start-ups fail within the first two years Lack of sufficient funding is one of the major challenges. GOVERNMENT SUPPORT: As a way to promote the development of new companies,…

Interview

OBG talks to Raúl Gallegos, President and CEO, General Electric México
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Interview:Raúl Gallegos How can private investment in research and development (R&D) be increased? RAUL GALLEGOS: The first thing to do is educate private companies to understand that investments in research and innovation are long-term strategies and not always profitable in the short run. As investments in R&D often lack immediate return, companies in Mexico have historically leaned towards investing in process-efficiency improvements rather than in actual R&D. Mexicans have…