New Directions in Mexico s Innovation Policy

Transcription

1 New Directions in Mexico s Innovation Policy JAIME PARADA AVILA GENERAL DIRECTOR CONACyT MEETING OF THE AMERICAN ASSOCIATION FOR THE ADVANCEMENT OF SCIENCE APRIL 23, 2004 WASHINGTON, DC

2 Outline Investment on Science and Technology and its Impact on Competitiveness and Income per Capita Overview of Mexico s Science and Technology Policy Human Capital and graduate studies in Mexico NAFTA beyond Commerce: Reasons for a New Cooperation Agenda

3 Over the last 40 years, Mexico s income per capita has not increased significantly $50 $45 $40 $35 $30 (thousand dollars 1995) Japan Denmark Norway Germany 31x $25 $20 $15 $10 $ Israel Argentine Portugal Korea Spain Greece France México x

4 Emerging economies that invested in S&T achieved a significant improvement of Income per Capita Investment in Science and Technology, as % of GDP, increased in: %GDP Mexico 2 times, Brasil 4.5 Spain 5 Korea year R&D as % of GDP Spain Korea Brasil Mexico Income in dlls. Income per Capita multiplied by: (dollars) Mexico 3.8 times Brasil 6.3 Spain 7.4 Korea 25.4 $20,000 $15,000 $10,000 $5,000 $0 year Income per Capita 16,500 12,600 6,100 5,

5 A new model is necessary to grow and compete in a global, knowledge-based economy Target income per capita: $25-30,000 Open economy Production of high added Free Trade value goods based on Agreements Closed economy (32) scientific technological Maquila Transition to Substitution of knowledge Industry primary imports and foreign industrialization State investment Protectionism Inertial growth : $10-12, Vision 2025 % GERD/GDP < 0.20% 0.25 % 0.40% > 2% GDP per person ($ yr 2000) $2,280 $4,600 $ 5,000 $25,000 Years of Education Higher Education <10% 10% 20% > 50%

6 Most of Mexico s Industrial Production is in Low Value Commodities R&D Intensity 40% - 30% - 20% - 10% - 0% - Agroindustry Textiles Wood and paper Products Cement, Steel, Oil Advanced Software Pharmaceuticals, Nutraceuticals Equipment and Electronic instruments Telecommunications Plastic Aeronautics Components Chemicals Metal Chemical specialties Electric Machines Products Biotechnology Other basic Advanced Materials Autoparts machinery Machine Tools Low Medium - Low Medium - High High Market Price: Dlls per kilogram <$1 <$10 <$100 <$1000 % GNP Mexico (manufacturing) 39.1 % 29.0 % 24.5 % 7.3 % Wage (USD/hr) Average $3,00 $6,00 $12,00 $24,00 Productivity (USD/hr) $10 $40 $160 >$600

7 Outline Investment on Science and Technology and its Impact on Competitiveness and Income per Capita Overview of Mexico s Science and Technology Policy Human Capital and graduate studies in Mexico NAFTA beyond Commerce: Reasons for a New Cooperation Agenda

8 Vision 2025: A Road Map for Mexico s S&T Growth (R&D as % of GDP) High Medium Low Level of S&T per Country Germany, Korea, USA, Canada, France, Israel, Sweden, Taiwan, Japan 2.00 Australia, Canada, Italy, Norway, China, United Kingdom Singapore, 1.35 Brasil, Spain, Italy, Poland, Russia > 2 % % 1.5 % 2% Emerging Mexico, Argentina, Chile, Turkey 0.40% R&D as %GDP 0.00 Foundations Take off Fast growth World Class

9 6 year Action Plan for S&T in Mexico ( ) 1st Stage Structural Changes 2nd Stage To consolidate reforms and introduce best practices in R&D 3rd Stage Integration of the National Innovation System: capturing the benefits of knowledge and innovation

10 6 year Action Plan for S&T in Mexico 1st Stage : Structural Changes New Law for Science and Technology 1. General R&D Council headed by President of Mexico (participation of 9 ministries and representatives from business and academic community) 2. CONACYT s reforms: S&T advisor to the President Executive Secretary of the General R&D Council Coordinator for the integration of the National Budget for R&D (0.42% GDP, $2.7 billions USD, 28,500 R&D personnel;more than 170 centers) Reports to the President of Mexico Coordinator of CONACYT s network of R&D Centers (27 centers; 6,000 people)

11 6 year Action Plan for S&T in Mexico 1st Stage : Structural Changes New Law for Science and Technology Research Funds 3. Creation of 43 CONACYT s match funds with Ministries, Federal Agencies, States (health, environment, industry, energy, agriculture and regional development): 200 MDlls, 1800 new R&D projects in Creation of a research fund specific for Basic Science, Ministry of Education-CONACYT; more than $60 million USD, more than 600 projects awarded in 2002.

12 6 year Action Plan for S&T in Mexico 1st Stage : Structural Changes Promoting private sector investment in R&D 5. Tax incentives for companies (30% of annual R&D expenditure). To foster private investment in R&D and facilitate linkage with research institutions: 150 M Dlls awarded to approx. 1,700 projects from more than 450 companies Strengthening Graduate Education 6. National initiative to increase Graduate Program Quality: 4,500 graduate programs, 655 programs certified, 15,000 scholarships awarded nationally and abroad; 8,000 scholarships per year.

13 6 year Action Plan for S&T in Mexico 1st Stage : Structural Changes International Cooperation International Cooperation Agreements, more than 30 countries Collaboration in Big Science : Great Millimetric Telescope (USA-Mexico): 10 years project, $100 M Dlls investment (to be completed at the end of 2004) Global strategies in International S&T ; North American Initative, FTA with Japan linking trade and S&T, Regional Approaches: Mexico and Central America; S&T treaty with the EU( 6th Framework programme)

14 6 year Action Plan for S&T in Mexico 2nd Stage : To consolidate reforms and introduce best practices in R&D AVANCE Program: Creation of high added value business through R&D 8. CONACYT s fund to provide seed money to integrate and promote start-ups (320 projects in evaluation; 30 M Dlls) CONACYT-NAFIN( National Development Bank): Venture Capital Fund CONACYT-NAFIN Guarantee Fund to provide commercial lines of credit to new R&D based businesses Government purchasing to stimulate R&D businesses Business schools programs in Innovation and technology management

15 6 year Action Plan for S&T in Mexico 2nd Stage : To consolidate reforms and introduce best practices in R&D R&D networks and Industry consortia 9. Focused areas: Biotechnology, IT, Materials, Advanced Design Engineering and Manufacturing 10. R&D applied to societal needs (housing, water,...) CONACYT s Managerial Modernization 11. Digital and web enabled systems, ISO 9000 and 6σ quality model

16 6 year Action Plan for S&T in Mexico 2nd Stage : To consolidate reforms and introduce best practices in R&D Public Policies Aligned to foster innovation 1% of GDP(reaching 60% Public, 40% Private for 2006) Structural Reform of the Fiscal Policy in order to derive monies for research funds Promoting Patenting practices among researchers and companies Venture Capital and Financial Support Integration of Industrial Value Chains Networks industry-r&d centers

17 6 year Action Plan for S&T in Mexico 3rd Stage : Integration of the National Innovation System: capturing the benefits of knowledge and innovation Integration of R&D Regional Policy (32 states) State R&D current situation: 21 state councils and 5 laws Technopoles and Incubators ( Nuevo León, Jalisco) Technology extension programs for SME s Enlarge S&T Base Strengthen basic science and infrastructure Increase the number of young scientists High quality Ph D programs

18 6 year Action Plan for S&T in Mexico 3rd Stage : Integration of the National Innovation System: capturing the benefits of knowledge and innovation New High Value Added Businesses through R&D New R&D ventures at the commercial stage (50) as a showcase for innovation International Cooperation in R&D Participation in R&D Global Networks International Agreements (EU, USA, Canada, Japan) Strategic Partnerships with Universities and R&D Centers

19 Overview of application of CONACyT s programs and instruments Basic Science Applied Research Technology Development Business-Technology Integration (AVANCE) Ministry of Education & CONACYT Fund New knowledge generation Human Capital Education (Postgraduate programs) Sectoral and State Funds Oriented to National Problems and priorities New Product and Processess development (grants up to 50%) FISCAL TAX INCENTIVES (30% ANNUAL EXPENDITURE of R&D) Pre-commercial Stage CONACyT s funds for : 1.Seed capital 2.Risk capital 3.Credit lines Private Investors Enterpreneurs Business Schools Business experts (Mentors) Business Generation New High Value Added Businesses Commercial

20 Outline Investment on Science and Technology and its Impact on Competitiveness and Income per Capita Overview of Mexico s Science and Technology Policy Human Capital and graduate studies in Mexico NAFTA beyond Commerce: Reasons for a New Cooperation Agenda

21 Human Capital in R&D 28,500 R&D personnel in Mexico. (75% in universities and R&D centers, 25% in private enterprises) 20% Basic Science 28% Engineering and Technology 21% Life sciences and Medicine 31% Social sciences and humanities Over 170 Universities and R&D Centers of excellence in all research fields;

22 CONACYT s Research Centers Social Sciences IT & TeleComm Electronics Optics Food Advanced Materials Metallurgy Polymers 4,800 R&D Personnel Aquaculture Environment Nanotechnology Electrochemistry Automation IT Software Applied Mathematics Software Optics Leather Mechatronics Ecology Biotechnology Biotechnology Electronics Software Mathematics

23 More than 40% of Ph Ds programs certified as high quality in CONACyT-Ministry of Education programs is in Applied Sciences and 30% in Basic Sciences 2003 Ph D Master Specialties Applied Sciences 19.5% Total 656 Basic Sciences 18.1% 25.5 % 10.4 % 10.9% 15.8 % 14.9 % 21.6 % 8.6 % 76.9 % 13.2 % 7.7 % 10.8 % 12.5 % 7.7 % 3.8 % 10.4% 7.8 % 3.8 % Health Sciences and Medicine Biotechnology and Agro sciences Engineering Physics, Math and Geosciences Chemistry and Biology Humanities Social Sciences

24 Over the last decade, China, Korea and India have more students in USA universities than Mexico, in a ratio 4:1 or higher Number of Foreign students in USA universities Number of Students Country 1987/ / / / / / /00 Mexico 6,170 6,540 6,650 8,021 8,687 9,559 10,607 China 25,170 33,390 42,940 44,381 39,613 46,958 54,466 India 21,010 26,240 32,530 34,796 31,743 33,818 42,337 Korea 20,520 21,710 25,720 31,076 36,231 42,890 41,191 Fuente: National Science Foundation, "Science and Engineering Indicators 2002".

25 In the last 10 years, Chinese Ph Ds have surpassed on average Mexican graduates by 16:1 Ph D in Science and Technology in USA by country of origin Número de personas Mexico Brazil China Korea India Total ,069 1, , ,240 1, , ,542 1,150 1,065 10, ,762 1,005 1,207 10, , ,262 10, , ,211 9, , ,082 9, , , , , , ,188 Fuente: Science and Engineering Doctorate Awards: 2001, NSF Korea and India Ph Ds are close to 7 per each Mexican graduate

26 A NUMBER OF IMPORTANT UNIVERSITIES IN NORTH AMERICA HAVE SIGNED AGREEMENTS FOR CO-FINANCING GRADUATE EDUCATION WITH CONACYT IOWA STATE UNIVERSITY* MCGILL UNIVERSITY TEXAS A&M UNIVERSITY UNIVERSITY OF ARIZONA UNIVERSITY OF CALIFORNIA AT BERKELEY, DAVIS, IRVINE, LA, SD, SB UNIVERSITY OF TEXAS-AUSTIN YALE UNIVERSITY MIT VANDERBILT UNIVERSITY UNIVERSITY OF ILLINOIS UNIVERSITY OF HOUSTON UNIVERSITY OF NEW MEXICO IDAHO STATE UNIVERSITY NEW SCHOOL FOR SOCIAL RESEARCH TEXAS TECH UNIVERSITY GEORGETOWN UNIVERSITY UNIVERSITY OF AKRON Michigan Technological University Virginia Politechnic Institute and State University UNIVERSITY OF CALGARY UNIVERSITY OF BRITISH COLUMBIA UNIVERSITY OF ALBERTA UNIVERSITÉ LAVAL UNIVERSITY OF REGINA UNIVERSITÉ DE MONTREAL Ontario Council on Graduate Studies (Waterloo, Carleton, Windsor, Wilfried Laurier, Trent, Toronto, Queens University at Kingston, McMaster, Lakehead, Guelp, York y Ottawa) General Government of Québec (Concordia, Ecole de Hautes Etudes Commerciales, Ecole Politecnique de Montreal, Mc Gill, Québec, Montreal, Sherbrook New Scotia Universities Presidents Council More than 650 new CONACyT s SCHOLARSHIPS awarded in 2003 to USA universities

27 Outline Investment on Science and Technology and its Impact on Competitiveness and Income per Capita Overview of Mexico s Science and Technology Policy Human Capital and graduate studies in Mexico NAFTA beyond Commerce: Reasons for a New Cooperation Agenda

28 NAFTA: An Engine for Prosperity From 1993 (the year preceding NAFTA implementation) to 2002, trade among Canada, USA and Mexico has climbed 109% (from $289 to $ 603 US billion Dlls) The annual average trade growth is 8.5% NAFTA parties conduct nearly US$ 1.7 billion in trilateral trade every day NAFTA has converted North America in one of the most competitive regions in the world

29 World Trade Data by Regions Population (million people) 1,600 1,400 1,200 1, , ,000 10,000 8,000 6,000 USA 2.4 Canada 1.9 Mexico ,300 R&D Expenditure(% GDP): , , , ,000 0 NAFTA E.C. Asia * * China, Japan, Korea, Singapore GNP (billions USD) 0 NAFTA E.C. Asia *

30 Reasons to include Science and Technology in a beyond NAFTA scenario (1) Take advantage of Mexico s open economy (free trade agreements with 32 countries and growing) Increase competitiveness of NAFTA countries (exports, output, among others): we face stiff competition from other trade areas Attract more Foreign Direct Investment (FDI) Added value chains in manufacture Take advantage of demographic trends Increase highly skilled R&D personnel

31 Reasons to include Science and Technology in a beyond NAFTA scenario (2) Take advantage of Mexico s competitive capabilities in engineering Availability of a wealth of natural resources and rich biodiversity Adding 53 million Mexican consumers with higher income and purchasing power to the regional economy R&D Networks of internationally competitive research Centers in areas of common interest

32 In addition, education is a key to a successful S&T partnership Mexico has a demographic bonus that can increase the region s competitiveness by renewing the skilled workforce. 33 million young people with the potential to become skilled workers, scientists,reseachers and highly trained professionals. Mexico wants to take advantage of this window of opportunity

33 Age Due to demographic changes, Mexico has a window of opportunity to boost the region s potential Millions of people Total Population: 100 millions Average Age: 23.3 years This is what we call our demographic bonus: 33 millions children and teenagers

34 Mexico s Demographic Data 2025: Demographic Bonus and Productivity Age Challenge: To educate 33 million people that will affect Mexico s competitivity Millions of people

35 Vision for the future: a North America- Trilateral R&D Space A trilateral S & T Agreement A feasible mechanism to finance collaborative activities Cooperation in education Partnership between universities and research institutions Research consortia between business firms and research centers Bi(Tri)-national laboratories Networks of excellence of R & D in strategic areas

36 Strategic Knowledge Areas defined for Mexico in Science and technology 1. Biotechnology and Genomics 2. IT and Telecommunications 3. Advanced Materials 4. High value added products: advanced design and manufacturing processess 5. Science and technology oriented to social needs We are interested in fostering knowledge in these areas through International cooperation and new alliances

37 Areas of Applied Research of potential Interest for NAFTA countries Border development : social stability, order, security Health: including fight against infectious diseases and drug addiction, new emerging infectious diseases control and prevention Food, including food safety Education Environment and Sustainability Development of Small and Medium Businesses based on Technology

38 Thank you!