National Policies to Support Regional Clusters and Innovation Systems (OECD Reviews of Regional Innovation: 15 Mexican States 2009)

As the data reveals, there is an imperative to improve both labour productivity and multi-factor productivity growth to ensure Mexico's future competitiveness. Mexico's competitive advantages in low-cost labour are slipping with respect to emerging market competitors, yet there is insufficient investment to ensure an effective transition to the knowledge economy. Furthermore, as innovation investment is pro-cyclical, there is a need to ensure continued public and private sector investment in innovation despite the financial and economic crisis so as to ensure sustainable growth in the long term.
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