Geography Reference
In-Depth Information
BOX 4.4
TECHNOLOGICAL CAPABILITIES AND
GLOBAL-LOCAL INTERACTIONS: A
CASE STUDY ON THE ELECTRONICS
INDUSTRY IN TWO MEXICAN REGIONS
In FDI-led high-technology manufacturing industries in less
advanced countries, such as the electronics industry in Mexico,
MNEs are critical actors in the creation of technological capa-
bilities. Their interactions with, and indirect impact on, the other
components of the regional system are crucial. The micro-level
analytical survey among manufacturing firms in the electron-
ics industry was conducted by means of a detailed question-
naire administered to a representative sample of locally-owned
firms and foreign subsidiaries (overall 80 firms). Different indica-
tors were used to construct a firm-level technological capability
index which provided a composite measure of technological
capabilities to assess inter-firm differences. The regions con-
sidered for the purpose of this study are both characterized by
a strong presence of the electronics industry and FDI inflows:
Jalisco, in particular the metropolitan area of Guadalajara was
chosen in central Mexico; the state of Baja California was
selected among the border states. To assess capabilities at the
meso level, face-to-face semi-structured interviews with key per-
sonnel from 30 innovation-oriented regional organizations were
also carried out.
Among the most important factors associated with techno-
logical capabilities at the firm level we find size, human capital,
and the use of external sources of technology and exports.
The analysis also shows that the most important mechanism of
technology transfer for developing capabilities in locally-owned
firms is the knowledge acquired by local personnel when they
worked for foreign subsidiaries. At the meso level, four endog-
enous (indigenous human capital, local innovation-oriented
organizations, the intensity of interactions among the regional
system components, and public sector engagement) and three
exogenous factors (origin of capital, an industrial sub-sector in
electronics and the historical path) are identified. The electron-
ics industry in Jalisco has stronger capabilities than the same
industry in Baja California. Firm-level capabilities, in foreign
subsidiaries and locally-owned companies, are higher in Jalisco:
