Industrial Hubs, Industrial Policy, and Economic Development in Mexico

Abstract

The chapter presents an analysis of the three main models of industrial hubs in Mexico based on empirical evidence derived from previous research. The cases are highly competitive and global, but their locally embedded characteristics are quite singular. Nuevo León, Mexico’s most robust innovation ecosystem with over 100 years of industrial trajectory, is mainly based on large local companies and has managed to consolidate in the period of import-substitution industrialization and successfully adapt to the export model. Baja California, with fifty years of FDI export in the maquila industry has managed a productive restructuring process. Querétaro has recently applied a top-down strategy to achieve a productive reconversion from the primary sector and metal mechanics to the aeronautical industry. Linkages between industry and academia have given a high level of competitiveness to the region. The chapter discusses regions, sectors, and public policies before concluding with relevant development policy recommendations.