Mexican experiences to accelerate innovation and globalization in technology

SMEs

Guillermo Fernández de la GarzaU.S. – Mexico Foundation for Science (FUMEC)

INNOVATION ACROSS BORDERS A GLOBAL CONFERENCE FOR SMALL AND

MEDIUM ENTERPRISES Toronto, Ontario, Canada February 24-25, 2011

Vancouver

Seattle

Silicon Valley

Phoenix

Austin

Detroit

Montreal

Madrid

International Offices

A Public-Private Partnership Created in 2005 TechBA: Technology Business Accelerator is a program of the Mexican Ministry of Economy operated by FUMEC , US-Mexico Foundation for Science

• The main objective of this program is to provide an environment that encourages innovation and international development of Mexican technology based SMEs.

• 150 technology SMEs, have reached 160 MUSD of International Sales with over 3,500 high value jobs created

• High Value Technology Sectors:• Information Technology *New Media *Health Technologies• Aerospace *Biotechnologies * Energy• Automotive * Microsystems * Manufacturing

A Public-Private Partnership

• 139 Mexican SME Companies have participated in TechBA Montreal (2006-2010)• 17 Mexican SME Companies have incorporated their busineses in Canada (@ a

Federal or Provincial Level)• 4 Mexican SME Companies have hired Canadian Human Recources• 8 SME Companies with high Innovation Elements and with development of patents.• 3 Mexican HR Staff in TechBA - Montreal• 12 Consultants / Coaches • 10 Offices available to our companies in Downtown Montreal• 1 Strategic Partner Inno-Centre (One of the most prestigious Quebec Incubators)• 6 Sectorial Studies / Strategic Road Maps developed in TechBA Montreal• 5 Networking and showcasing events in Montreal

Facts TechBA Montreal

2011 Pre Aceleration Induction Week

• Sector: Biotechnology (Mexico City)• Results: BP finalized in successful Preacceleration and moving to Acceleration

• Products: Biofertilizers made from fungi and bacteria. RHIZOBIUM ETLI – RHIZOFER: (Bacteria), AZOSPIRILLUM BRASILENSE – AZOFER: (Bacteria), MICORRIZA- MICOFER: (Fungus)

• Results TechBA: Biofabrica is in a market that will grow rapidly within the next few years. The rise of corn, wheat and soybeans grown in Canada and in the US are very large.

• Recently incorporated in Canada as a R&D center and they have started field trials for product validation and market approach after TechBA support. (Terraltum Biotechnologie, Inc.)

• JV exploration with Premier Tech (www.premiertech.com).• Soil fito-remediation project with the Montreal University (UdeM) valued in $8 MUSD,

which its results will lead to technical and scientific data useful in the microbian life characterization in contaminated soils. Biotechnological characterization will help in the development of applied technologies. This is a 3-year project that will induce technology transfer and the generation of applied products.

BIOFABRICA SIGLO XXI

• Sector: Aerospace (Chihuahua)• Products: Aerospace Textiles (Seat Covers, Canopies , Acoustic Panels & Emergency Rafts). Manufacturing & Machining

(Airplane Galleys, water tanks for Airplanes, Golf Carts) - Assemblies Packboards Slide Rafts. AS9100 Certified for Aerospace

• Customers– OEMS: Boeing, Airbus– TIER 2: Zodiac, Weber, Aircruisers, Goodrich. – AIRLINES: Singapore Air, China Eastern Airlines, Easy jet & United Airlines, Emirates, Cathay Pacific

• In process of developing a contract of 15M Euro with a German Company to supply machining in Chihuahua for Aircraft Interiors. Contracts with customers in Canada: Zodiac (with presence in Mexico), C&D.

• Joint Venture with American company: National, forming NASO (New • Buisnesss Unit for Machining)• Contracts in Pipeline: BE Aerospace (B/E) (USA), Recaro (Germany) and

Bombardier (Canada & Mexico)• MRP ready for 5 times growth capabilities, see graph:• 1st TechBA –Montreal company to access funding from: Crédito HIRPYME

Our Customers and Products:Our Customers and Products:

Aerospace ManufacturingAerospace ManufacturingAS-9100 CertifiedAS-9100 Certified

•AirlinesAirlines:

•OEMsOEMs

Main Plant:Calle Melchor Guaspe 3800Chihuahua, Chih MexicoCP 31050jemesta@soisa.com.mx

Canadian Office:550 Sherbrooke WestMontreal, QuebecH3A 1B9

US Address:WTS - SOISA360 Americas AvenueEl Paso, Texas 79907

Composite assembliesand softcovers

Canopies

Decontamination Systems

Adhesive safety devices

Seat covers- leather and fabric

Insulation & Acoustic PanelsFlotation devices

Galleys

Hydraulic Products Pneumatic Products Machined Products

Electro-Thermal Products Hydro forming & Special processes High Strength Steel Alloys Distribution

TechBA Montreal AerospaceInternational Private Public Academic Network

Basic ideas behind TechBA

• Technology intensive businesses (TIBs) MUST have a global vision in relation to markets, technology and financial strategies

• TIBs profit from the interaction with different ecosystems, cooperation with specialized organizations and companies of regions that have a culture and a broad experience in developing similar type of businesses

• A key element of the TechBA Program has been the selection of ecosystems with high innovation drive, suitable for partnerships with Mexican TIBs

Strategic Partnership

• The Ministry of Economy of Mexico chose FUMEC as a strategic partner that:– brings into the program strong technology and business networks – understands the key cultural and economic issues involved in

developing successful international endeavors

• Another key element of the TechBA Program has been the selection of ecosystems with high innovation drive, such as Silicon Valley in California, Austin in Texas , Montreal in Quebec and Madrid in Spain.

• In each region, TechBA partners with recognized organizations and networks of specialized consultants, that have a proven track of successful results in accelerating innovative companies– Inno-entre in Montreal and – Wave Front in Vancouver

• Interact with the local ecosystem to: – Accelerate specific technology based companies, by helping them to:

• Capitalize their intellectual property and business skills by reorienting their capacity to global markets.

• To reach milestones in terms of sales, alliances and access to angel and venture capital investment.

– Facilitate the development of global technology business ecosystems in the regions with better capabilities to take advantage of these interactions

– Strengthen collaboration between organizations promoting innovation in specific niches in areas like:

• Business intelligence mechanisms • Fairs and TechShows• Training and capacity building

Lessons : Interact fully with the local ecosystem

FUMEC mechanisms that support the strategy of building innovation clusters around strategic niches

13

Building strategies, infrastructure and innovation capabilities in specific niches

Acceleration in international ecosystems

Regional Development of companies and clusters to

access opportunities

SATE

FUMEC MECHANISMS OF WORK

TechBA

Innovation Projects

Innovation Networks: AERIS, etc.

Development of appropiate Ecosystems for Technology-based Companies.

StrategicNiches

Specialized incubation

Studies of Niches

Capacities Mapping

Empowerment of technological and entrepreneurial capabilities

SW FOR MOBILE DEVICES

Database of 160 companies

Training and/or interaction with

support of corporations

Prototype development

based on opportunities

Interaction with TechBA

20 hour training program with any of these companies•RIM•Microsoft•Nokia•Motorola•Telef. Móvil•Iusacell•Telcel

Selection of best projects

Additional support of corporations in developing the prototype

Workshop in TechBA Vancouver•Feedback on proposals•Testing services with support of Wavefront•Introduction to Vancouver business ecosystem

Integration of companies to acceleration processes

Ongoing support to companies in HR and innovation projects

Social network

Company profiling

(40)

Workshop on business

opportunities and

strengthening program

Development of local innovation network

•4 universities•8 companies•SATE•Training with support of OEMs •Basic equipment

EVOLUTION OF A LOCAL NETWORK TO PROMOTE MOBILE TECHNOLOGIES IN THE STATE OF MEXICO

16

Alex Systems

•Company establishment in Mexico•Development of two international projects•Documentation of development process•Training of teachers and students from a local university

Articulation with the “Mobile Leadership Program”

Lessons: Collaboration with regional and niche innovation programs

• Success of the acceleration process relies on the quality of the

companies that have the potential to grow in the global technology business environment

• These companies emerge mainly from programs in innovation regions and in priority niches of high growth potential sectors

• Global acceleration programs of technology companies require, in the country sponsoring the program, strong collaboration with the leading and operational structures of innovation regions and priority niches

• These interactions facilitate the development of the “business –technology ecosystems” that are essential for the creation and growth of many more technology companies.

Lessons: International collaboration for “Global Acceleration of TIB” also broaden S,T & E cooperation

• These programs facilitate broader science, technology, education and business collaboration among countries.

• Building up closer ties in high technology provides immediate economic results and also develops synergies among – universities, – research institutions, – governmental agencies and – business organizations,

• Starting from the grass roots and moving up to the state and national levels

Conclusions: • The TechBA Program is stimulating growth and innovation in

Mexico and in our partnering countries.

• It is specially important for Mexico because it:– Accelerates business and technological development of participating Mexican

companies– Provides global business and technology intelligence and networking to key

Mexican technology business sectors – Supports the development of clusters and acceleration processes in Mexico– Focuses in value added and intellectual property creation with products for

the global markets– Promotes the kind of global competitive business culture that is highly

needed in the XXI century

Thank you

Guillermo Fernández de la Garzagfernandez@fumec.org

US - 1 202 250 9106Mex - 52 55 5200 0561