Baja California’s BusinessDevelopment Policy:The next steps to reach a regional economy based on Knowledge & Technology

World classWorld classmanufacturingmanufacturing

EVOLUTION OF THE LOCAL ECONOMIC DEVELOPMENT STRATEGIES EVOLUTION OF THE LOCAL ECONOMIC DEVELOPMENT STRATEGIES

Productive Re-conversionOld national & regional

industriesHeightening of worldwide competition

Worldwide Economic RecessionWorldwide Economic Recession

Increasing loss of Increasing loss of regional & national regional & national

competitivenesscompetitiveness

Productive Chains Productive Chains & Clusters & Clusters

of high added value of high added value and technologyand technology

InnovationInnovationPoliciesPolicies

FDI FDI

DrivenDriven

PoliciesPolicies

Local InnovationLocal InnovationSystems of Systems of OrganizationOrganization

Coming of the new economyComing of the new economy

BusinessBusiness

DevelopmentDevelopment

PoliciesPolicies

Str

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++ AddedValue

++Technological Complexity

Business Clustering Strategy.Focused on high added value and high technology business opportunities.Value chain rapid scaling due to key and high added value projects.

Creation of capacities for the innovation, development of technologies with potential for commercialization.HC in research, development & design.

Support to previously established industriesAttraction of OEM, EMS, Manufacturing Capabilities

Federal Competitiveness Program

Business DevelopmentBusiness DevelopmentPolicyPolicy

VOCACIÓN

1

VOCACIÓN

2

VOCACIÓN

3

VOCATION FOR TECHNOLOGICAL INNOVATION

A. High concentration of PhD's and technologists in BC

B. Closeness to the most innovative regions in the world (SD, Silicon Valley, etc.)

C. Experience in world class manufacturing of high-tech products

Cluster 1 Cluster nLocal Innovation

Systems of Organization 1

State Economic Development Plan

Inhibitors InhibitorsInhibitors

Inhibitors

ProjectsChampion

Projects Champion

State Business State Business CouncilCouncil

Economic Economic Development LawDevelopment Law

Investment Investment PromotionPromotion

(FDI Attraction)(FDI Attraction)

Business Business Development Development

StrategyStrategy(Incentives & (Incentives &

support)support)

Up

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Innovation & Technology Innovation & Technology Development PolicyDevelopment Policy

Cluster 2Local Innovation

Systems of Organization 2

Projects Champion

Strategic Level

Operative Level

Strategy for the Strategy for the development of development of technology and technology and

innovation innovation resources & resources & capabilitiescapabilities

Add

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alue

Pre-manufacturing Manufacturing Post-Manufacturing

Res

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DISTRIBUTION OF THE BUSINESS VALUE CHAINThe function of innovation in the productive &

economic escalation strategy

L1 L5L5

Innovation Innovation &Technology &Technology Development Development

StrategyStrategy

ValueChain Control

Participate in product introduction stage

Brand and mark-up (overpricing)

BC Strategy: BC Strategy: Create Local Innovation Systems of Organization

Centered on Research+Development+DesignTaking advantage of current regional & environment conditions:

Solid Scientific Base + Closeness to the US+ World Class Engineering

Create Conditions for I+D+D Solid Financing Policy Infrastructure (Technology Parks) Fortify Innovation Agencies

(BCInnova, BorderTech, PRODUCEN, CENTRIS, etc.)

Business Development Policy High-tech Clusters (6) Technology Innovation in

traditional Clusters New technology based companies

Science & Technology Policy Scientific networks (UABC-

CICESE-UNAM-IPN) New centers for the development

of high level human capital

Talent Development Policy Science Museums Children Follow-up

(beginning from 8 up to 17 years)

Local InnovationSystems of Organizaton

I+D+D

3 suns3 suns

Mexicali

Tijuana-Tecate-Rosarito

Ensenada

BASE POLICIESBASE POLICIES

DRIVING & PROMOTING POLICIESDRIVING & PROMOTING POLICIES

Create Capacity for I+D+D Seed Projects (CENI2T, Design

Centers, Incubators, etc.) High-tech / R&D Investment

Attraction Promote the development of new

technology based businesses

¿¿What does it mean to Baja California What does it mean to Baja California to be to be the national leader of the new economythe national leader of the new economy??

Be able to gain a substantial amount of private annual investments in activities and businesses (companies, labs & R&D Centers) centered in strategic high-tech areas

Generating high added value jobs related to high added value jobs related to knowledge & technologyknowledge & technology in the next 8 years

Provide Mexico and its partners the opportunity to participate locally in high added value business and activities of the product development value chain

These activities will generate a constant flow of young entrepreneurs and new local companies based on technology.

Provide BC high global visibility as a technological leader in Mexico & in Latin America

Attraction of the best investment projectsbest investment projects in manufacturing and high added value and technology services in Latin America.

Baja California:Baja California:Technological &Knowledge FrontierTechnological &Knowledge Frontier

Innovation & Technological Development in the industrial & cluster Innovation & Technological Development in the industrial & cluster development policy of Baja Californiadevelopment policy of Baja California

EMBRIONIC MATURITYGROWTH AGING

SEMICONDUCTORS

AUTOPARTS

AEROSPACE PARTS

MEDICAL PRODUCTS

SOFTWARE

CONSUMER ELECTRONICS

SPECIALIZEDELECTRONICS

PERSONAL COMPUTERS

APPERAL(TEXTIL)

Emerging Industries

Industries at risk

BIOTECHNOLOGY

Innovation & R+DInnovation & R+D is a critical factor for the growth of emerging industries

Innovation & R+DInnovation & R+D is a critical factor to reach added value and diversification in mature industries

Baja California:Baja California:Knowledge & Technology FrontierKnowledge & Technology Frontier