Fostering innovation through strengthening institutional capacity: the role of the government in Nuevo Leon

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Conferência Internacional LALICS 2013 Sistemas Nacionais de Inovação e Políticas de CTI para um Desenvolvimento Inclusivo e Sustentável 11 e 12 de Novembro, 2013 - Rio de Janeiro, Brasil Fostering innovation through strengthening institutional capacity: the role of the government in Nuevo Leon Danilo Chavez EGAP School of Government and Public Policy Tec de Monterrey Conferência Internacional LALICS 2013 Sistemas Nacionais de Inovação e Políticas de CTI para um Desenvolvimento Inclusivo e Sustentável 10 a 13 de Novembro, 2013 - Rio de Janeiro, Brasil 1

Agenda 1. Guiding question 2. Theoretical background 3. Methodology 4. Findings: Nuevo Leon Case Study 5. Concluding remarks 2

1. Guiding Questions How does institutional capacities foster innovation at subnational level? o What are the main components of the RIS of NL? o What is the government s role fostering innovation? o What kind of institutional capacities foster innovation in the RIS? 1. Guiding question 2. Theoretical background 3. Methodology 4. Findings 5. Concluding remarks 3

2. Theoretical background Regional Innovation System Approach political boundary; innovative activities takes place; urban conglomeration. Institutional Capacities o Organizational level 1. Guiding question 2. Theoretical background 3. Methodology 4. Findings 5. Concluding remarks 4

Customers Collaborators Technology mediating institutions Regional System Innovations Regional socioeconomic and cultural setting Knowledge application & exploitation subsystem Vertical Networking Industrial companies Horizontal networking Contractors Competitors Knowledge, resources, and human capital flows and interactions Knowledge generation and difusion subsystem Workforce mediating institutions External influences NSI institutions NSI policy instruments Other RSIs International institutions Public research institutions Educational institutions International policy instruments Source: Autio (1998) 5

RIS for subnational government Regional socioeconomic and cultural setting Regional policy Subsystem External influences NSI institutions Normative Incentives for firms STI Public organizations Infraestructure NSI policy instruments Other RIS Knowledge, resources, and human capital flows and interactions International Organizations Knowledge generation and difusion subsystem Public & Private research centes Human capital Knowledge application & exploitation subsystem Firms Industries International policy instruments Universities Intermediate organizations Clusters 6

3. Methodology Case Study: Monterrey, Mexico o Monterrey International City of Knowledge 2003-2012 Monterrey Metropolitan Area (12 municipalities) Regional Innovation System Model: o Generation and diffusion of knowledge subsystem o Use and exploitation of Knowledge subsystem o Regional Policy subsystem 1. Guiding question 2. Theoretical background 3. Methodology 4. Findings 5. Concluding remarks 8

4. Findings: Nuevo Leon Case Study Source: CEDEM (2006) Monterrey statistical area: 85% of the state population Average annual growth rate of 6% (based on manufacturing activities in products of heavy industry) 7.3% of the national GDP. Economically active population:60.2% Average state per capita income exceeds 84% of national average (OECD, 2006). Of northern states, NL has highest number of registered researchers. (Nationwide, it has 3.4% of total) 1. Guiding question 2. Theoretical background 3. Methodology 4. Findings 5. Concluding remarks 9

Institutional Framework for promoting a regional innovation system in NL Source: Villasana (2010) 1. Guiding question 2. Theoretical background 3. Methodology 4. Findings 5. Concluding remarks 10

INSTITUTOS TECNOLÓGICOS CI-PÚBLICOS CI-PRIVADOS UANL CENTROS DE INVESTIGACIÓN (CI) UDEM ITESM UNIVERSIDADES SUBSISTEMA DE GENERACIÓN DE CONOCIMIENTO CLÚSTERS PIIT SUBSISTEMA DE POLÍTICA REGIONAL SUBSISTEMA DE USO DE CONOCIMIENTO GOBIERNO DEL ESTADO SECRETARIA DE I2T2 DESARROLLO ECONÓMICO CONACYT-REGIONAL GOBIERNOS MUNICIPALES CÁMARAS DE COMERCIO SECTORES ESTRATÉGICOS EMPRESAS CONACYT SECRETARIAS GOBIERNO FEDERAL SECTOR EXTERNO: SNI, SRI, ORGANIZACIONES INTERNACIONALES

RIS Nuevo León IC (1): NORMATIVE CAPACITY LAW OF STI Legislative committee 1% for STI activities Incentives Development Program Sectorial Programs NUEVO LEON STATE GOVERNMENT LICITD-NL I2T2 - DevSec LFIE-NL Citizen Councils (Clusters) Citizen Councils for the I2T2 INDUSTRIAL PROPERTY LAW IMPI NOREAST REGION GENERATION AND DIFUSSION KNOWLEDGE SUBSISTEM USE AND EXPLOTATION KNOWLEDGE SUBSYSTEM INNOVATION

RIS Nuevo León IC (2): CAPACITY TO GENERATE INCENTIVES NUEVO LEON STATE GOVERNMENT INTERNATIONAL FUNDS CONACYT I2T2 SEDEC MIX FUNDS UNIVERSITIES PUBLIC RESEARCH CENTERS LABORATORIES FONLIN FIRMS CLUSTERS PRIVATE RESEARCH CENTERS PROGRAM TO FOSTER INNOVATION SECTORAL FUNDS GENERATION AND DIFUSSION KNOWLEDGE SUBSISTEM USE AND EXPLOTATION KNOWLEDGE SUBSYSTEM ECONOMY SECRETARY: PROGRAMS FOR FIRMS I NDIRECT INNOVATION DIRECT

RIS: Monterrey, Nuevo León IC (3): CAPACITY FOR CREATION STI ORGANIZATIONS NUEVO LEON STATE GOVERNMENT I 2 T 2 SEDEC INTERNATIONAL ORGANIZATIONS CONACYT REGIONAL CONACYT TECHNOLOGICAL INSTITUTES- NL 10 CLUSTERS TECHNOLOGIC AL INSTITUTES GENERATION AND DIFUSSION KNOWLEDGE SUBSISTEM USE AND EXPLOTATION KNOWLEDGE SUBSYSTEM RESEARCH CENTERS UNIVERSITIES LABORATORIES RESEARCH PUBLIC CENTERS INNOVATION FIRMS

RIS: Monterrey, Nuevo León IC (4): CAPACITY TO SUPPORT INFRAESTRUCTURE NUEVO LEON STATE GOVERNMENT INTERNATIONAL FUNDS CONACYT UNIVERSITIES FIDEICOMISOS I2T2 14 PUBLIC RESEARCH CENTERS LABORATORIES RITP (PIIT) 10 CLUSTERS ECONOMIC DEVELOPMENT SECRETARY 1 INCUBATORS 19 PRIVATE RESEARCH CENTER STI HUMAN RESOURCES MIX/SECTORAL S FUNDS FORDECYT / FIT ECONOMY SECRETARY GENERATION AND DIFUSSION KNOWLEDGE SUBSISTEM USE AND EXPLOTATION KNOWLEDGE SUBSYSTEM INNOVATION

5. Concluding remarks Monterrey is a case of an emergent regional innovation system in which the creation of institutions to support innovative capacity have added to the already existing cultural, institutional and organizational assets in the state. 1. Guiding question 2. Theoretical background 3. Methodology 4. Findings 5. Concluding remarks 16

5. Concluding remarks Components and functions o Conditions for the interaction of the RIS Nuevo Leon. Governmental State role o Internal structure o Relation with federal government Institutional capacities to foster innovation o What is/are the public problem(s) that the government of Nuevo Leon need to solve? 1. Guiding question 2. Theoretical background 3. Methodology 4. Findings 5. Concluding remarks 17

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