Innovation and Regional Growth in Mexico: 2000-2010

33 Pages Posted: 25 Sep 2014

See all articles by Andrés Rodríguez-Pose

Andrés Rodríguez-Pose

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Edna Maria Villarreal Peralta

Scientific and Technological Advisory Forum

Date Written: September 2014

Abstract

This paper looks at the factors driving regional growth in Mexico, paying special attention to the potentially growth-enhancing role of innovation and innovation policy. The analysis combines innovation variables with indicators linked to the formation of adequate social conditions for innovation (the social filter), and spillovers for 31 Mexican states and the Mexico City capital district (the Distrito Federal) during the period 2000-2010. The results indicate that regional economic growth across Mexican states stems from direct investment in R&D in areas with favorable social filters and which can benefit not only from knowledge spillovers, but also from being surrounded by rich neighbors with good social conditions. The results stress that, although Mexican innovation policy has been relatively well targeted in order to generate greater economic growth, its relatively modest size may have undermined the attainment of its main objectives.

Keywords: economic growth, innovation, Mexico, regional convergence, socio-economic conditions

JEL Classification: O32, O33, R11, R12

Suggested Citation

Rodríguez-Pose, Andrés and Villarreal Peralta, Edna Maria, Innovation and Regional Growth in Mexico: 2000-2010 (September 2014). CEPR Discussion Paper No. DP10153, Available at SSRN: https://ssrn.com/abstract=2501636

Andrés Rodríguez-Pose (Contact Author)

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Edna Maria Villarreal Peralta

Scientific and Technological Advisory Forum ( email )

Mexico

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