The Growing Technology Ecosystem in Mexico
The technology sector in Mexico has become an area of explosive growth in recent years, with an average yearly growth rate of 10.5% from 2002 to 2018. This progress has been accompanied by a significant boost in exports, indicating a strong connection to international markets.
Despite being in its infancy, the venture capital market in Mexico is making substantial progress in supporting the development of many key Mexican startups. Due to its manufacturing-centric economy, proximity to the U.S. market with 62 million Latinos, and serving as a gateway to expanding Latin American markets with an evolving middle class, Mexico presents an ideal environment for bolstering innovation.
Technology Clusters in Mexico
In addition to industrial hubs in Mexico that consistently produce engineering talent for the manufacturing industry, are clusters of Mexico's IT industry and talent. Mexican government policies and modernization efforts have played a significant role in shaping the country's R&D ecosystem. In the early 2000s, the Program for the Development of the Software and Computing Industry (Prosoft) was launched in Mexico with the intent to boost R&D and technical training in IT to enhance Mexico's global competitiveness in the tech industry.
Following this, Mexico introduced several other supportive measures for R&D, including attractive tax incentives for R&D projects, programs encouraging research collaboration between academia and industry, and funding opportunities for innovative projects.
The demand for IT roles in Mexico (and globally) is on the rise as more manufacturing processes are fused with technology, the need for digital security grows, and the surge in mobile app usage due to increased accessibility to mobile technologies. This industry holds boundless potential, and the growing interest of many companies in becoming more agile has further boosted the demand for these roles as close as possible to production or the final consumers.
Tijuana and Mexicali make up an important manufacturing hub for various industries such as aerospace, medical devices, biotechnology, automobiles, and electronic equipment. The region also excels in agro-industry, particularly in wine and berries. Manufacturing companies are mainly located in industrial parks near the border, catering to the export market. The presence of industrial clusters housing major US and international companies offers an opportunity to collaborate with entrepreneurs for the development of technologies and services that can enhance value-added production. Notable companies taking advantage of this ecosystem include Samsung, Honeywell, Plantronics, Thermo Fisher, Skyworks, and more.
Manufacturing activity in Ciudad Juarez and Chihuahua is diverse, with a focus on various sectors such as communications equipment, disposable medical materials, electrical and electronic equipment for motor vehicles, measuring and control instruments, interior accessories for motor vehicles, computers, electrical and electronic components, and non-electronic medical equipment. The city is also increasing its capacity for advanced R&D, often in collaboration with universities and research centers in El Paso, Texas. The presence of cross-border manufacturing indicates a strong infrastructure for binational innovation, aiming for high-value production and efficiencies.
Monterrey and Saltillo serve as important centers for private businesses and are home to a significant number of Mexico's largest companies. The Monterrey metropolitan area is the headquarters for prominent corporations like CEMEX, Banorte, Banregio, FEMSA, Gamesa, and OXXO. In addition, multinational companies such as Boeing, Caterpillar, Dell, GE, Mercedes-Benz, Philips, and Siemens have established significant operations there. The city's leading universities provide a skilled workforce that fuels corporate investment. Key industries in Monterrey include nanotechnology, biotechnology, aeronautics, medical services, automobiles, home appliances, IT and software, multimedia, transport and logistics, agribusiness, energy, and tourism. The Monterrey metropolitan area is responsible for approximately 10% of Mexico's IT companies. US technology companies often look to Monterrey to tap into its pool of talented engineers.
领英推荐
In Central Mexico, there is a region known as Bajio. Its economy is primarily driven by the automotive and aerospace industries, as well as agrifoods, chemical products, plastics, and metal products. The automotive sector includes major OEM plants and numerous parts suppliers that serve global leaders such as General Motors, Nissan, Volkswagen, Ford, Kia, Honda, Toyota, Infiniti, BMW, and Daimler, mainly located in Guanajuato state. The region employs around 300,000 people in the automotive industry. Over the past 25 years, the manufacturing economy of Querétaro state has shifted from consumer goods to a focus on automotive, aerospace, IT, and OEM sectors. Queretaro is ranked fourth globally for aerospace foreign direct investment and is home to more than 25 data centers, including operations of Axtel, Huawei, and Microsoft. Aguascalientes state has successfully attracted major IT firms such as Softtek, Semtech, iTexico, Capgemini, Tech Mahindra, and Texas Instruments, which contribute to the growing IT sector. The majority of IT companies in the region serve foreign clients in the insurance, e-commerce, banking, and healthcare industries using a nearshore model.
Financial and business services, information and media, and manufacturing are the leading sectors driving business activity in Mexico City. The city is home to twelve of Mexico's fifteen largest companies, with a strong emphasis on commerce and state-owned enterprises. The presence of numerous universities contributes to the city's research and innovation capacity, attracting a talented workforce. In fact, Mexico City and the State of Mexico ranked first and third respectively in 2019 for the number of registered researchers. Due to its size, market potential, abundant resources, and proximity to the national government, Mexico City is a magnet for overseas businesses, including startups. From 2014 to 2019, the city experienced significant growth in startup activity, resulting in a surge in employment opportunities. Notable startups in the region, such as Kavak, Konfio, Clip, and Facturama, are primarily focused on e-commerce and digital payments.
Guadalajara, located in the state of Jalisco, holds the fourth largest GDP among federal entities in Mexico. Its economy is primarily driven by manufacturing, with a thriving IT sector that accounts for 40% of the country's IT industry. The city excels in areas such as electronics, telecommunications, automobiles, aerospace, and medical devices. Software development, software services, and business process outsourcing (BPO) are the prominent fields within the IT sector. With its technological advancements, Guadalajara has become Mexico's hub for high-tech industries, attracting global technology companies like Bosch, Flex, Foxconn, Sanmina, AstraZeneca, HCL, Tata, Cognizant, Honda, and NXP Semiconductors. Over 1,000 high-tech companies operate in Guadalajara, providing 150,000 jobs. The city boasts significant clusters in technology, e-commerce, financial services, healthcare, and transportation. The city's innovation ecosystem is further enriched by a growing number of startups, including several with dual headquarters in Silicon Valley.
Located at the northern tip of the Yucatán Peninsula, the state of Yucatán is a well-known tourist destination. Its capital city, Mérida, is one of the oldest cities in North America. While the economy of the state relies heavily on tourism and agribusiness, Mérida is making strides in the field of information technology. With a strong educational foundation and a thriving artistic and creative community, the city has established itself as a hub for IT services. Currently, there are around 20 medium-sized IT companies in Mérida. Although Mérida's startup scene is relatively small, it shows great promise due to the city's assets and supportive policies implemented by the Yucatán government and business community. These factors have created a positive business environment with a technological edge. One of the state's key priorities is the development of Mérida as a "smart city," and Cisco has played a role in supporting this vision by assisting in the establishment of an integrated digital administration and improving digital access for the city's residents.
Sources:
It certainly is exploding right, agreed! #LatinAmerica is seeing a huge surge in #startup investment and interest, which is great!