KEY DEVELOPMENTS IN MEXICO S ICT SECTOR, POLICIES AND REGULATIONS: SETTING THE STAGE FOR THE 2016 OECD MINISTERIAL TIC General Director for Innovation, Services and Domestic Trade Ministry of Economy Raúl Rendón Montemayor raul.rendon@economia.gob.mx
Structural Reforms Mexico: a global player and a leader on the global stage Energetic Energy Reform Reform Educative Reform Raise the productivity 4.4-4.9% GDP 2018 + 1% GDP Financial Reform Reform Telecomm in Reform Economic Competition + 0.5% GDP Financing Reform Economic Competition Reform Labor reform Strengthen and expand the rights of Mexicans Telecommunications Reform Tax Reform +0.3% GDP Education Reform Labor Reform Reforma Financiera + 0.1% GDP Transparency Reform Strengthen our democratic regime and freedoms Rights of a new generation* Right of access to information and communication technologies, as well as to broadcasting and telecommunications services, including broadband and internet. Quality in mandatory education * Constitución Política de los Estados Unidos Mexicanos
National Development Plan 2013-2018: Innovation-related policies & strategies Strategy 3.5.1. Increase Gross Domestic Expenditure on R&D (GERD) to 1% of GDP Strategy 3.5.4 Foster knowledge transfer from academy to industry Strategy 3.5.3. Foster local STI* vocations to stimulate regional development Strategy 4.2.4. Increase access to finance for innovation and patent creation Strategy 4.5.1. Foster ICT* sector development and ICT adoption Strategy 4.2.4. Foster innovation through public procurement *STI=Science, Technology and Innovation. ICT= Information and Communication Technologies
Information technologies : A National Priority The ITC services should act as a catalyst for innovation and productivity for the rest of the economic sectors. National Development Plan National Digital Strategy: (EDN) Encouraging the adoption and development of ICT. Innovation Development Program Focus in strategic sectors of high added value. Implementation of a Specific program of Government: a Close and modern Government Strategy for the people. Direct support and encouragement for the Innovation and the ITC Sectors. The IT Sectoral Agenda: Establish a comprehensive and strong IT sector. Objective: Increasing national productivity and skills to innovate in the rest of the economic sectors. Articulated Public Policies designed to encourage the supply and demand for digital goods and services.
Innovation Policies
Finland Switzerland Israel Japan United States Germany Sweden Netherlands Singapore Taiwan, China Canadá China Costa Rica Panamá Chile India México Brasil Rusia Colombia Uruguay Bolivia Argentina Perú 3.91 3.78 3.65 3.54 3.53 3.31 3.31 3.29 3.21 3.15 3.15 3.04 2.76 4.54 5.8 5.7 5.6 5.5 5.5 5.5 5.4 5.3 5.2 5.1 Mexico: Innovation Pillar, The Global Competitiveness Report 2013-2014 7 6 Mexico ranks 61 out of 144 countries on the innovation pillar. Forth among Latin- American countries. Index 5 4 3 2 1 0 Selected countries Source: The Global Competitiveness Index 2013 2014. WEF
Innovation Development Program Sectors Mature Dynamic Emerging Metal-mechanical Textile, leather and clothing Wood and furniture Steel Food and beverage Automotive and auto parts Aerospace Electrical Electronic Chemical Biotechnology Pharmaceutical IT Creative Industries Medical equipment Increase Productivity Increase competitiveness Attract and encourage emerging sectors
Transversal strategy Sectoral and Transversal Strategy Mature Dynamic Emerging Sectoral strategies Development of suppliers Incorporation of suppliers to value chains through tractor companies Increased production value added Increase technological and productive capacity of suppliers Create a baseline of suppliers Bonding with the productive sector Regional Clusters Linking with dynamic sectors Create manufacturing regions with definite vocation and unified standards Automotive: NL, Guanajuato, Chihuahua, State of Mexico, Ags. and Pue Aeronautical: BCN, Chih, QC, NL and Son. Electronics: BCN, Jal. and Chih. Program of intersectoral linkages Electrical: NL, QC. and Chih Innovation Joint projects for capacity building with wide coverage Public support for industrial re-converting and investment in physical, human and technological capital Creation of a networks of innovation centers. Development of human capital with high-level skills National initiative to promote Digital Market Human capital
Innovation Strategy Sectoral Specialization Governance Innovation Pillars Ecosystems Articulation Financing
The Federal Government has a number of programs to foster innovation Venture capital and other Companies (>2 years) Young companies (<2 years) Mexico Ventures I (VC) Mexico Ventures I (VC) Seed Capital Fund Accelerators Mixed Funds PEI: Innovapyme-Innovatec-Proinnova FINNOVA: Innovation vouchers Technological Innovation Fund INADEM Funds PRODIAT, PROSOFT Mexico Ventures I (direct investments) Entrepreneurs Universities and Research centers Resources for Research Centers Sectorial Funds Fondo Co-inversión Capital Semilla FINNOVA: Offices of Knowledge Transfer Incubators SE SE- CONACYT INADEM Researchers SIN* NAFIN-SE Students Scholarship CONACYT Human capital skills * Researchers National System Basic Research Applied research Technology development Activities Development for commercialization Production Commercialization Commercial expansion
Mexico: Catalog of Programs to Foster Innovation, 2014 (million US Dollars*) MUSD* CONACYT PEI- Grants $297.7 PROSOFT- Gtants $56.2 PRODIAT- Grants $15.7 Federal government programs to foster innovation Ministry of the Economy FINNOVA. Grants Seed and Venture Capital PROIND- Grants $22.7 $22.8 $19.0 $543.5 MUSD* FIT. Grants $9.6 INADEM INADEM. Grants $7.6 Seed and Venture Capital $49.2 PROMÉXICO. Grants $43.0
Mexico ICT Sector is the best kept secret We ve been implementing for the last 12 years a successful long-term Public Policy in the IT Sector. Political Commitment with the Sector. Goals for 2024. Another 10 years.
PROSOFT 3.0 Sectoral Agenda 2003-2007 2008-2013 2014-2024 PROSOFT PROSOFT 2.0 PROSOFT 3.0 Create a Launching Platform Strengthening pillars: Human capital; Software development; Firms organizational quality Digital Market and Innovation. IT as a cross-industry MISSION To foster a strong and global IT sector that increases overall productivity and innovation capabilities in the other economic sectors.
IED DESTINATION 1 Mexico is ranked as the 2nd place in Latin America as a destination for investment attraction. 3º GLOBAL EXPORTER 2 Mexico is the third-largest exporter of IT services after India and the Philippines POOL OF TALENT 3 There are currently in the country 625 thousand professionals in IT and there are annually 115.000 graduates in the areas of engineering and technology 4º OUTSOURCING DESTINATION 4 Mexico occupies the 4th position among the best destinations to provide activities for outsourcing, including IT services and support, contact centers and support backoffice. Mexico IT Provider GEOGRAPHICAL PROXIMITY TO THE BIGGEST MARKET 5 Mexico is the "natural" supplier of IT services to the markets of Latin America and North America. Fuente: 1. AtKearney. 2. Gartner. 3. ANUIES. 4. Atkearney 5. Gartner
The IT Industry in Mexico has shown a positive performance in the last decade Indicator 2002 2012 2014 Market Value(BUSD) /1 3.95 14.39 20.7 Exports (BUSD) /2 1.75 5.56 - Economic Units /3 2,095 4,152 3,093 Jobs /4 226,000 625,000 564,989 Certified Development Centers /5 4 627 680 National spending on IT (BUSD) /6 6.1 21 23.1 /e 1/ Source: Cifras Select, 2014 estimado (tipo de cambio promedio 2014: 13.29 pesos [SAT, 2014]); 2/ AT Kearney. 2011; 3/ Fuente: DENUE, INEGI; 4/ Fuente: INEGI para cifras de TI, sin incluir BPO, Censo de agencias de servicios de outsourcing, IMT, 2014; 5/ Se refiere a Certificaciones SEI (CMMI) datos a 13 feb/2015, CERVERT y NYCE (MOPROSOFT); 6/ Fuente: Gartner Forecast IT Services End-User Spending, Business Monitor Internacional.
PROSOFT 3.0 Indicators and Targets 2 Exporting country (today 3 ) 3 Destination of IT outsourcing (today 4 ) Multiply by 4 the market value of IT (today 14.4 BUSD) 3 In LATAM in use of IT enterprise (today 5 ) 1,000 Quality Centers (today 680) Approach to 15 sectors. 90% of demand for talent cover (today 50 %) 50% of IT companies innovate (today 25 %) 25% of value added services (today 9.4 %) 30% With linked projects (today 5 %) 50% of IT companies innovate (today 23 %) 5 global poles of IT in the country (today 0) Annual strategic planning. LATAM Leader in laws related to IT (today 5 ) Main Indicators Exports. Volume of transactions made with outsourcing. Number of firms that use IT of value. Certified Companies. Added Value of Services Linking academy - industry. Poles of global competitiveness. Strategic planning and impact evaluation. Change of the regulatory environment.
Strategies and Success Factors of PROSOFT 3.0 Digital Market Business Innovation Talent of excellence Globalization Market`s approach with Value Digital chaining Supreme quality Linking Innovative activity Disruptive technologies Volume Skills Localization Global Players Investment Attraction Exports Financing Smart Regionalization Legal Certainty Governance Financial Formation Financing Alternatives Seed Capital and entrepreneurial Differentiated Niches Strategic Alignment Global Positioning Global Integration National regulatory harmonization Protection Articulation and policy alignment Impact Evaluation Effective Communication
Objectives and Strategies of the PROSOFT Fund. Program for the Development of the Software Industry. Digital Market Business Innovation Talent of excellency The overall objective of the Program is to contribute to the growth in the IT sector in Mexico. 2015 Budget 748.78 Financing Globalization Legal certainty Governance Smart Regionalization
Established Priorities in the Operation Rules Digital Market Business Innovation Talent of excellence Globalization Financing Smart Regionalization Legal Certainty Governance Organizational certifications of supreme and intermediate quality E-commerce Digital Chaining Approaching the market with value Priority enterprises and new ones Innovative Activity Protection of intellectual and industrial property Disruptive Technologies Labs Academy- Industry Applied Investigation Individual Certification of high specialization Creation of new areas of expertise Massive open courses on-line for IT Employment of high specialization Internships in businesses Exports Investment Attraction Mexico Ventures FIT http://www.prosoft.economia.gob.mx Poles of competitiveness Differentiators Niches Global integration and national harmonization PROSOFT 3.0 Activation Articulation and policy alignment
MINISTERIAL ON DIGITAL ECONOMY 2016 JUNE 21-24 2016 CANCUN, QUINTANA ROO
MINISTERIAL ON DIGITAL ECONOMY 2016 JUNE 21-24 2016 CANCUN, QUINTANA ROO Overall Structure (Preliminary) 21 Stakeholder Forum(s) 22, Ministerial Opening Session Welcome Ceremony Track 1 23, Ministerial Track 2 24 CDEP Meeting Track 1 Track 2 2.1 Global Mobile Connectivity 4.1 New Markets and new Jobs in the digital Economy 1.1 Economic and social benefits of an open Internet 3.1 Consumer Trust and Market Growth 2.2 Internet Of Things 4.2 Skills for a Digital World 1.2 Stimulating Digital Innovation across the economy 3.2 Digital Security and privacy risk managament Closing Sessions Press Conference
we are determined to transform Mexico and place it at the cutting-edge of technology and knowledge... ENRIQUE PEÑA NIETO President of Mexico
We are ready to welcome you in Cancun