building competencies in human resources: the role of...
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Academia de Ciencias Administrativas, A.C. Congreso Anual Internacional 5 al 7 de mayo, 2004
Building Competencies In Human Resources: The Role Of Highly Skilled Human Resources As A Key Policy For The
Mexican Innovation System
Hector C. Parker Rosell Centro de Investigación Científica y Estudios Superiores de Ensenada
The most productive and fastest growing economies are developing innovative solutions, building and strengthening capabilities as central part of corporate and public-sector strategies. To reach these, the competencies in terms of knowledge, skills and abilities that the human resources provide needs to be consider as key factors to face these new challenges. This paper is focus on the development of Highly Skilled Human Resources (HSHR) and its absorption by the productive sector in order to strengthen the performance of the Mexican Innovation System (MIS). The guideline of this paper will be the analysis of two main problems related to the educative performance; (a) insufficient amount of HSHR; (b) and the supply of HSHR whose are not efficiently absorbed by the National Productive System. The objectives: (1) to identify the flows of HSHR inside the MIS; and (2) to gain a deeper policies understanding of the formation and development of HSHR and mechanisms implemented to persuade firms to deal with HSHR to facilitate innovation and gain competitiveness. I will make emphasis in the flow of HSHR into the productive sector in order to create organizations with the principal aim of design new arrangements, incorporating mechanisms to ensure the achievement of technological and innovation objectives; and the creation of links between the three main actors (government agencies, higher education institutions and productive system) in order to carry out policies and strategies settle in the National Plan for Development.
The most productive and fastest growing economies are developing innovative
solutions, building and strengthening capabilities as central part of corporate and
public-sector strategies. Meanwhile developing countries are looking to reinforce
their efforts fostering scientific and technological activities in order to accomplish
industrial competitiveness. If they do not, they can not be able to maintain their
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existing levels of economic growth and can not be able to face new and dynamic
challenges. A matter of critical importance is that it is considered at the level of the
nation or region, industry or Individual Company, technological innovation and its
effective management. To reach these, the competencies in terms of knowledge,
skills and abilities that the human resources provide need to be consider as key
factors to face these new challenges.
This paper is focus on the development of Highly Skilled Human Resources
(HSHR) - mainly people with a Master o PhD degree gotten in a National University
and/or abroad - and its absorption by the productive sector in order to strengthen
the performance of the Mexican Innovation System (MIS). The analyse will be
base on, according with some authors, the assumption that Mexico has a fragile
National Innovation System (NIS) because it has a weak economic, productive
and educative performance. The guideline of this dissertation will be the analysis of
two main problems related to the educative performance; (a) insufficient amount of
HSHR; (b) and the supply of HSHR whose are not efficiently absorbed by the
National Productive System.
This two problems are interdependent; if a country does not dedicate efforts to
elevate the quantity and quality of its human resources and does not include
policies and strategies to pursue the productive sector to employ highly skilled
personnel, then firms would not absorb what the country produces in human capital
and firms would not be able to develop technological and organizational change to
improve their performance. As a result the country would have a weak NIS
because firms would not be able to strengthen their innovative and productive
process and they will depend on international efforts, HSHR and knowledge.
In this paper two main objectives are develop: (a) to identify the flows of HSHR
inside the MIS; and (b) to gain a deeper understanding of the policies related to the
formation and development of HSHR and mechanisms implemented to persuade
firms to deal with HSHR to facilitate innovation and gain competitiveness. Taking
into consideration these objectives, this work would try to answer the following
questions:
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Q1. Are HSHR policies and strategies oriented to improve the development, competitiveness and performance of the productive sector? Q2. Does the Mexican productive sector have the capabilities and capacity to absorb and enrol HSHR?
In the first part of this paper I categorize the flows of Highly Skilled Human
Resources (HSHR) inside the Mexican Innovation System (MIS) in order to provide
evidence of the low production of HSHR and to identify the causes of the low
absorption of HSHR by the productive sector. Then I present the importance of the
National Innovation System (NIS) approach with the purpose of giving a framework
in which I can support the idea that the development of human resources is
important for the enhancement of technological and organizational change to
improve firm’s performance. Part 2 will analyse the Mexican Innovation System,
and its recent evolution. In addition I will analyse the behaviour that the main
actors have taken in the production of knowledge. So, part 2 will give a better
understanding (a) of what government has done related to HSHR competencies;
and (b) what are the interactions and link between the educational systems with
the productive system. Part 3 will describe the set of new mechanisms to
strengthen the links and networks between the educational system and the
productive sector to enhance industrial competitiveness.
1.1 Highly Skilled Human Resources Flows In order to recognize the causes of the low production of HSHR and the low
absorption of HSHR by the productive sector; is necessary to start describing how
the human resources flows are done inside the MIS (Figure 1). I identify two main
flows, X and Y. X are students whose after the tertiary level do graduate studies in
higher education institutions (HEIs) outside Mexico1; Y are students whose after
the tertiary level do graduate studies in National HEIs. Three different flows after
the graduate studies can be distinguish: (1) the flows that go to work inside the
1 Mainly in the US, UK, France, Spain and Canada.
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Education System (X1 & Y1); (2) the flows that go to work inside the productive
sector (X2 & Y2); and (3) the flows that go to work inside the Government (X3 &
Y3). The next equations can be establish: X + Y = NOT ENOUGH X1 & Y1 = HIGH DEMAND BUT FACES LIMITS TO HIRE AND RETAIN X2 &Y2 = NOT ABSORBED EFFICIENTLY BY THE PRODUCTIVE SECTOR X3 & Y3 = NOT RELEVANT FOR THIS ANALYSIS
HSHR FLOWS INSIDE THE MIS
Figure 1. X + Y = NOT ENOUGH
Y3
Y2
X3
X2
EDUCATION
SYSTEM
PRODUCTIVE
SECTOR
GRADUATE
ABROAD
GRADUATE NATIONAL
TERTIARY
LEVEL
Y
X
Y1
X1
GOVERNMENT
According to Parada2 Mexico, that by its population, territory and GDP is the
eleventh nation of the world, occupies in the global context the place 36 by its
income per capita (7,847.54); the place 42 by its low effort in Science and
Technology (S&T); and the place 31 by the low effort of its productive sector in
R&D. The following indicators demonstrate these. The first refers to expenditure of
2 General Director of the National Council for Science and Technology (CONACYT)
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S&T as a percentage of Gross Domestic Product (GDP). Mexico’s Research and
Development (R&D) expenditure is about the 0.4% of GDP (Figure 23). While in
Korea are about 2.7%, Brazil 0.91% and Spain 0.9%, so the percentage of GDP
spent on R&D, is the second lowest in the Organization for Economic Cooperation
and Development (OECD).
Figure 2
R&D expenditure as a proportion of GDP y GDP per capita
Country R&D/GDP GDP per capita USD Position
Canada 1.58% 26,441.54 9
Brazil 0.91% 8,206.08 31
Spain 0.9% 18.106.30 23
Korea 2.7% 12,607.56 27
Mexico 0.4% 7,847.54 36
Source: OECD, Main S&T Indicators, Vol. 1-2001.
The second indicator corresponds to R&D expenditures by source fund (Figure 34).
In Mexico, the majority of the funds assigned to R&D activities comes from the
government, approximately the 68.2%, meanwhile the expenditure by the private
sector is only 0.1% of the GDP, while in Korea the majority of the financial
resources for R&D comes from private funds.
Figure 3
Expenditure in S&T by source of fund.
Million of US Dollars
PRIVATE SECTOR
PUBLIC SECTOR
PRIVATE SECTOR
PUBLIC SECTOR
PRIVATE SECTOR
PUBLIC SECTOR COUNTRY
1980 1980 1990 1990 1999 1999
Brazil 134 571 555 2,247 2,194 3,291
Korea 303 323 3,769 907 7,317 2,706
Spain 201 757 2,069 2,297 2,521 2,541
3 CONACYT, 2002, 36 4 CONACYT, 2002, 38 - 52
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Mexico 45 514 60 606 483 1,617
Canada 1,110 1,923 3,470 4,891 4,938 5,098
Source: OECD, Main S&T Indicators, Vol. 1-2001.
The third indicator and the one that confirms that Mexico has insufficient HSHR
corresponds to the number of HSHR involved in S&T activities (Figure 45). In
countries with more dynamic economies and a higher R&D expenditure, personnel
devoted to these activities are counted in thousands per million of populations,
while in Mexico there are approximate 286 engaged in these activities.
In addition, Mexico has the lowest concentration of researchers per population of
OECD members, with only 6 researchers per 10,000 inhabitants vs. 48 in Korea
and 29 in Poland. Moreover, Mexico has the lowest absolute number of S&T
personnel (Valenti Varela and del Castillo, 2000).
The fourth and last indicator refers to the number of people devoted to S&T in the
productive sector. Mexico has only 4,846 people devoted to S&T activities working
in the productive sector, while Korea has 134,568. Even more revealing than the
sheer number of people is the fact that only 19.04% of the total personnel engaged
in S&T is within the productive sector in Mexico, whereas this sector accounts for
up to 50% of such personnel in other countries.
Figure 4
People dedicate to S&T activities by sector 1980 - 1999
1980 1990 1999 Country Public
Sector Private Sector
Total Public Sector
Private Sector
Total Public Sector
Private Sector
Total
Mexico 2,883 212 3,095 12,441 1,559 14,000 20,596 4,846 25,442
Brazil 0 19,868 1,673 21,541 44,994 3,787 48,781
Spain 13,494 4,829 18,323 47,057 19,525 66,582 85,866 30,729 116,595
Korea 6,230 13,441 19,671 22,328 48,175 70,503 42,618 91,950 134,568
Canada 20,613 18,377 38,990 34,787 31,013 65,800 39,676 51,134 90,810
Source: OECD, Main S&T Indicators, and Vol. 1-2001.
Conacyt, Indicadores de Actividades Cientificas, 1990 - 1999
5 CONACYT, 2002, 46
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A comparative analysis of the four indicators in their totality shows that Mexico
budgets does not have enough financial resources for S&T activities, and is
deficient of private funding sources. So, human resources are insufficient
according with International standards. However, the rate of growth of HSHR
(12.7%) is very significant (CONACYT, 2002). In addition, according to Valenti et
al. (2000) Mexico shows one of the highest annual growth rates (15%) for S&T
expenditures probably reflecting the greater effort that Mexico has made to
improve their capacities in the last years.
X1 & Y1 ≠ X2 &Y2
HSHR are mainly employed by the education system (universities and research
centres) approximately 68% (X1 & Y1); 19% work for the productive sector (X2 &
Y2) and only 13% are hire by the government (X3 & Y3) (CONACYT, 2000).
According to Parada, these tendencies are explained because there was a lack of
a well-defined and continuous S&T policy for the country related with the
development and formation of HSHR. Also he argues that Mexico did not have an
integrated innovation system in S&T that contribute to increase industrial
competitiveness. Cimoli and Valenti et al (2000) argue that the low hiring of high quality human
resources by firms is due to a lack of coordination between the productive sector
and the education system. They highlight that there is plenty of empirical evidence
clearly showing that technological improvement inside Mexican Firms requires
investment in human resources, while maintaining high quality, and advanced
curricula inside HEIs throughout different technical subjects. Moreover, they
recognized that in order to produce human resources with formal qualifications
regard to production and innovation activities, not only depends on the education
system, it needs to be done in relation with the productive sector. They point out
that the education system covers only partially the requirements for creating skills
and the job training and learning provided by the firms are also important in the
formation of HSHR.
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For Rocha-Lackiz the inefficiently absorption of HSHR by the industry is explained
by two reasons (a) policies were hold in great scale with the special aimed to
support the national graduate programmes and not attend policies that linkage the
education system with the productive one; and (b) the absence of a “demand pull”
from the Mexican productive system. She argues for the first point, that HEIs policy
pursued quantitative over qualitative and it makes by consequence, that the
formation and training of specialized personnel that fully satisfy industrial needs
were relegated. By consequence, these policies make insufficient education
quality in HEIs programmes that satisfied industrial needs, therefore there were not
a hard linkage between the graduate students that HEIs produce and the
specialized personnel that firms required. Rocha-Lackiz pointed out, in relation to
the second rason, that there were a low participation of private funds in S&T
activities because industry did not care in the benefits that R&D can provide, and
because the productive sector looks out for its necessities instead to look inside.
As a result Mexican industry forgot to enhance collaboration with the national
education system.
According to the World Bank, the low absorption of HSHR is because exists a
scare connection between the education system with the productive sector of
social needs and private sector does not make use of the research infrastructure
available at universities and technological institutes. One result is that university-
based researchers perform only 1.4 percent of R&D funded by the private sector
(second lowest percent among OECD members). So, for the World Bank, the
Mexican NIS is weak because it is not able to produce HSHR in quantity and
quality capable to provide the ways to innovate in R&D and fulfil satisfy industrial
needs.
1.2 What is a National Innovation System?
Nowadays it is generally accepted that a society’s economic development is based
on its capacity to generate and absorb innovation processes. The National
Innovation System approach is based on the analysis of the strategic alliances and
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interactions between firms, research centres, HEIs and Government. In fact,
innovation is seen as a social process that depends in the promotion and
production of knowledge infrastructure (Cimoli, 2000).
Lundvall (1992) defines a NIS as a set up of elements and relations that interact
within the national boundaries, in the production, diffusion and use of economically
useful new knowledge. Nelson and Rosenberg (1993), on the other hand, consider
a NIS to be a set of institutions whose interactions determine the innovative
performance of firms. They define innovation in a broad sense as the process by
means of which firms manage and put into practice product designs and new
parallel manufacturing processes. Their conception is not limited to the behaviour
of firms on the technological frontier or to institutions that perform advanced
scientific research, but includes all factors that determine national technological
capabilities (Rocha-Lackiz 2000).
For Rocha-Lackiz (2000) the NIS is focused in a national dimension that stress the
importance of the structure and interactions of firms, the educational and research
subsystems, the institutional framework and the diverse governments’ policies.
Also she argues that the different elements that constitute the system make
complementary contributions to the innovation process by informal and formal
relationships that facilitate knowledge flows and stimulate the creativity of agents,
improving the depth and quality of these connections. For her, networking, that is
the establishment of semi-permanent relations between agents, seems to be the
most adequate mechanism to allow such flows.
The purpose of the NIS approach would be: (a) to identify the main threads that
link technology, institutions and economic performance; (b) to provide mechanisms
that increase the systems’ capacity to accumulate, distribute, transform and
generate knowledge; (c) and to give a framework in which the mechanisms that
support technical change and innovation can be understood.
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1.3 Why human resources are so important for the NIS?
Human Resources are the competitive source that determines the abilities and
experience an organisation can be able to have in important decisions, such as
purchasing, adaptation, improvement and creation of technology efficiently. Inside
a NIS, the nation’s human resources are the result of a mixed of processes of
various institutions and policies with the aim that through them the nation is able to
carry out the economic performance.
The three main actors in the process of developing Human Resources
competencies are government agencies, higher education institutions (universities
and research centres) and productive system (firms and sectors). Governments
establish norms and policies that rule the behaviour of the system and also impact
the education and productive system. The role of the HEIs is to produce HSHR in
quantity and quality and provide the ways to innovate in research and
development. The productive system plays different roles, firstly firms address
specific requirements for production activities, these requirements can be fulfil by
HEIs, therefore firms absorb what the educational system produce; secondly firms
that invest in R&D activities employ highly skilled personnel with a specialization in
the firms production needs; thirdly firms are the ones that innovate, therefore firms
need HSHR to be competitive in order to satisfy the technological needs and
market competitiveness. The NIS works if the government establish norms that
enhance economic growth and HSHR formation; if HEIs have programmes that
fully satisfy industrial needs and encourage the study of a graduate degree; and if
firms innovate, develop market competitiveness and provide work for HSHR, so a
satisfactory interplay of the principal actor of a NIS takes place.
On the other hand, a weak NIS is when government creates policies to correct
market failures and did not take much care in its human resources base; HEIs
pursued quantitative over qualitative education; and the productive system did not
innovate and develop technological change therefore HSHR are not efficiently
absorbed by firms. Nevertheless, Valenti, et al. (2000) affirmed that if firms include
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in their strategies the investment in HSHR they would be more apt to develop
technological and organizational change and to improve their performance.
Consequently firms would encourage HEIs to modify their programmes according
to industrial needs and together would force government to invest and support
R&D activities and HSHR formation. In other words, firms will be able to innovate
and influence in a positive way the NIS.
Due to these, it can be pointed out that there are three important elements that
configure the NIS; (a) HSHR competencies are, at the first stage a function of
government and HEIs policies; (b) firms abilities to adapt and use technological
capabilities are associated with the development of HSHR competencies at the
production and managerial levels; and (c) it needs to be a positive and
interdependent relationship between competencies relative to HEIs and the
knowledge skills and abilities required by the productive system (Valenti, et al.
2000).
2.1 The evolution of the HSHR inside the Mexican Innovation System The Mexican innovation “system”, that encompassed the firms, universities, and
other public and private institutions involved in the generation, diffusion, and
application of knowledge for productive purpose, remains inefficient in channelling
S&T investment into productive applications (WB, 1998). Mexican industry has
been developed in an environment in which enhancements in quality and
technology were largely un-rewarded. Even large firms apparently invested low
amounts in adapting and developing new technologies.
Similarly, the academic and public research sectors developed largely in isolation
from the needs of industry. Furthermore, institutions that could serve as bridges
between universities and firms including the system of SEP-CONACYT6 centres
6 27 research centres integrate the SEP-CONACYT system: 9 in Exact and Natural Sciences; 9 in Humanities and Social Sciences; and 9 in Engineering and Technology.
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have been operated as academic research centres rather than firm-oriented
service organizations.
What is also evident in the last decade was the absence of incentives schemes for
the diffusion of knowledge and the creation of technology based firms; and was left
to private agents the responsibility to conduct the innovation and technology
modernization processes. The only concerned of the government during this time
were to strengthen the education system, X1 & Y1, and so on the formation of
HSHR, but the government did not create any policy, programme or plan to
incorporate this force of knowledge to the productive system, X2 & Y2, and
enhance the built of links and networks between these sectors.
We can said that the Mexican Innovation System (MIS) during the last decade was
hold in the internationalisation process, based on the external performance, so
Mexican industry was oriented towards exports and specialization in manufactured
commodities, acquiring, assimilating and adapting foreign technology. In other
words, the Mexican production system has modernized part of the economy by
capturing the effects of opening up the economy (Cimoli, 2000). But there was not
a development and stimulation of the indigenous technology due to those R&D
activities - that were carry out in national institutions - and these did not resolve the
problems that firms face during this transformation. So, this provokes that the
productive sector moved away from the education system; consequently the
productive sector looked outside to satisfy its technological and human resources
needs.
2.2 Educations and Human Resources Behaviour According to Cimoli and Constantino in a knowledge-based economy, economic
improvement is related to the efficacy and efficiency of using and producing
knowledge. In this context, the growing specialization of knowledge induces the
stimulation of a great interdependence between the actors. At the same time, this
fact creates conditions for the emergence of a system of networks, as an
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expression of the social arrangements for capturing the benefits derived from the
knowledge exchange and diffusion of innovation. These conditions are derived
from the role played in the creation of different competences inside government,
the education system and the productive sector. However, high educational
competencies are necessary conditions for skills, technical experience and
innovative efforts within industrial activities; such as, the interaction between
government, the educational and productive system is the main issue explored
throughout this section. For this analysis is important to see the evolution and
importance that each actor has taken in the production of knowledge, thereby the
formation of HSHR.
Inside Government7
The effectiveness of Mexican investment in S&T activities may be viewed as a
function of productivity of researchers in terms of publications, and human
resources investment. Regarding the productivity, significant improvement in
productivity of Mexican research has occurred in recent years, as evidenced by the
12.8% per annum increase in scientific and technological publications in
specialized international journals during 1995-2000. Despite this impressive
growth, productivity remains low in international terms at 0.64% of publications by
Mexican researchers. Human resources formation, a critical output of research
projects, also remains disappointingly low.
The proportion of students in higher education has increased since the 1970s while
graduate enrolments (X & Y) have shown a more recent growth, about 12.7% per
year. The number of doctoral programmes has increased from 117 in 1990 to 446
in 1999. The greatest percentage (23.5%) of these in 1999 was in the area of the
exact sciences and administration, 18.8% in engineering and technology, 14.2% in
education and the humanities, 11% in the health sciences, and 10.3% in the
agricultural sciences (CONACYT, 2000). 7 All figures and indicators presented in this section were taken out from CONACYT, (2000). 30 years of CONACYT’s scholarship program: evolution, results and impact. Mexico DF: Consejo Nacional de Ciencia y Tecnología.
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The total number of doctoral degrees awarded from 1990-1999 was in the order of
5,200. The increase average per year during this period was 17.3%. In spite of
this growth, the number of doctoral degrees awarded in Mexico was still lower than
others OECD countries. Meanwhile, the number of doctoral students graduated
per year is around 1,000 in Mexico; Brazil graduated is 6,000; Spain 5,900; Korea
4,000; and the United States 45,000.
The number of student loans8 “becas-credito” given by CONACYT over the last 30
years amounted to more than 100,000 increasing from 580 in 1971 to 6,800 in
2000. It was not until the 1990s that the support for doctoral programmes was
given priority, and as a result two-thirds of the awards have been given to Master’s
students. Seventy-five percent of the loans were awarded for postgraduate studies
within the country (Y), and the rest supported studies abroad (X). It is more
common for CONACYT to support education abroad at the PhD and Postdoc
levels than at the Master’s level. While in the period from 1971 to 1979 only 44%
of all grantees completed their studies, this figure rose dramatically to 97% for the
period 1995-2000.
While in the period from 1971 to 1973 more than 50% of the scholarships were for
study abroad, from 1998 to 2000 more than 80% went to support national
programmes. This is due to the increasing number and quality of postgraduate
courses available in the country. More recently for every 100 scholarships
awarded, 28 were in the field of engineering, 23 in the basic and natural sciences,
19 in the social sciences and administration, 14 in applied biology, 10 in the
humanities and in the behavioural sciences, and 6 in the health sciences. As of
2000, approximately four of every five former grantees worked in the public sector,
the majority inside the education system (X1, X3 & Y1, Y3). According to
CONACYT it is due that inside the education system is where the largest
proportion of research efforts is carried out. This try to explain flow X1 & Y1. 8 These loans are called “becas-credito”. Rather than repay the value of the loan, loans may also be forgiven in the scientist returns to a institute of higher education or research centre and works for a time period that duplicate the duration of the loan.
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It deserves special mention the concern and the determination that the SEP-
CONACYT Centres have put in the formation of human resources of high level;
there are 34 programs of doctorate and 45 of masters. During 1997, 2,769
students were in the different programs; almost 400 graduated, 1049 articles and
200 books were published, 471 technological projects were produced and 362
were commercialised; also, 8.469 companies receive consultancy and together
were lent more than 50 thousand services of different degrees of complexity.
As it has been seen, the government through CONACYT had made an important
effort in the creation and formation of HSHR (X & Y flows), However, it is still
insufficient according to OECD indicators.
Inside HEI System
During the 1970s the government paid special attention to higher education
focused on quantitative rather than qualitative results. In the 1980s, the economic
crisis caused significant reduction in the funding assigned to higher education
specially affecting public HEIs whose received 90% of their income from
government subsidies. During the period 1990-2000 the government supported
public universities with extraordinary resources destined to the improvement of
different institutional elements: the teaching staff, through the Teaching Staff
Improvement Programme (PROMEP); the infrastructure, through the Higher
Education for Modernization Fund9 (FOMES); the management, through the
Administrative Normalization Programme (PRONAD); the cooperation between
institutions, through University Support and Development Programme (PROADU);
and the construction and equipment of physical spaces, through the Multiple
Contribution Fund (FAM). Also these policies were supported by three
9 Fondo para la Modernización de la Educación Superior, which grants additional support to the HEI on the basis of specific projects directed towards the improvement of institutions.
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mechanisms: (a) the SNI; (b) the Excellent Graduate Programmes Register10; (c)
and the creation of a new type of HEI, the Technological University11.
According to Valenti, et al (2000) the enrolment rates in national research graduate
level is still low, since the vast majority of students at the tertiary level select
business and social sciences instead of engineering and technological science.
This is due to the fact that students tend to be greatly influenced by the job
opportunities available in the labour market. Also students increasingly prefer to
choose certain programmes offered by private HEIs than in public HEIs, this
change in trends is explained by (a) the preference for a particular type of private
HEI, in which programmes are more closely linked with the productive system and;
(b) the prestige that some private HEIs have, caused by the fact that firms prefer to
employ students from these HEIs. In addition, this consequence is also a symptom
of the problems that public HEIs might still have in solving their operational
problems as well as their bureaucratic process that do not allow them to have an
efficiently linkage with industry needs.
Although the collaborative relations between HEIs and firms trend towards growth,
it seems that programs created inside HEIs to link the technological development
and the production of knowledge with the productive system still seems atypical.
Furthermore and in spite of some HEIs that have established relations with SMEs,
it seems that there are not formal programs that link R&D activities with the
productive system. As well, the relationship between National Research Centres
and private business appears to be more problematic than with universities.
Research centres expect to be able to guide their own research independently, and
they are unsatisfied with industry’s short-term perspectives and desire to influence
the research project. Private Sector tends to want short-term solutions, which
researchers are not usually able to provide. Moreover Mexican government
10 This classifies those academic programmes that due to their quality deserve special financial support from the government. Of almost the 2.500 graduate programs that by their characteristics could be part of it, only 430 have been recognized by their good quality. 11 These universities are based on close relationship with local industry in different parts of the nation.
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through SNI12 encourages the misunderstanding by rewarding researchers for
research and publications that are often irrelevant to the natural resource problems
faced by the productive system.
A growing number of Mexico’s largest and most important centres for graduate
training have acknowledged that their educational and research programs need to
be changed in order to better meet the needs of a modern economy. Students
tend to take a very long time to complete their degrees. As new PhD become
researchers they face unnecessary delays establishing themselves. Salary
incentives at the national and university levels give the priority to publishing over
training.
In summary, the general policy implemented during the last decade has
beneficiated national graduate programmes; also has notably stimulated through
scholarship programs13 professors interest in graduate level studies, and has
achieved an improvement in the wages paid to professors (SNI). However and
even the number of HSHR has increased in some areas, firms have not fully felt
the direct impact on their innovation performance. Firms still have a low demand
for highly skilled personnel, these shows that the effort that government and HEIs
have done still need to be improved so actually HEIs still have a weak linkages
with the productive sector.
Inside the Productive System Mexican policy to support firm-level technological enhancement has been reduced
in effectiveness due to a variety of factors, including: a narrow definition of
individual program objectives; inadequate integration of support services provided
by various public and private agencies; a tendency toward centralized control by
12 The SNI is generally looked upon as a “necessary evil”, although the pressure of having to maintain the required level of productivity, particularly in international journals, is influencing the scientists’ research agendas and priorities. 13 The Ministry of Education in 1998 create two scholarship programs: PROMEP (for public HEIs) and SUPERA (private HEIs), to encourage professors to obtain a PhD degree abroad. These due to the fact that national universities need to actualise and modernize their teaching system.
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federal agencies; and an over-emphasis on the creation of the supply of services
versus incentives for articulation of demand. Since Mexican firms show low R&D and hire few professional employees and even
fewer highly trained human resources (X2 & Y2), there is a poor absorption rate for
HSHR within firms. This low human resources profile has greatly hindered proper
linkages with the productive system within the Mexican NIS at a time when firms’
performance often depends on the cognitive and technological competencies of
their human resources. Empirical evidence has shown that the firms that hire
larger proportions of engineers and professionals show a greater propensity to
introduce modern technology and innovate. The opposite is also true: the firms
that have fewer professionals within their labour force seem to have rather
stagnant innovation and technological profiles. (Valenti, et. al 2000, 150)
Few firms in Mexico are in this dynamic of change so the country still has a
vulnerable productive plant. This is explained because of the 2.8 million companies
approximately established in Mexico, 99% has a level of emergent
competitiveness; 3,377 counts with quality systems like ISO 9000; 2.500 are
exporters and less than 30014 do some type of R&D. This explains the low
competitive position that Mexico has respect to Korea and Brazil.
Collaboration between researches and users/producers is very important for both
parts. However, they recognise that it is a difficult partnership. The Private Sector
has an unwillingness to invest in long-term projects. They assume that the
research results belong to the state and that production of knowledge is a public
good for which they do not have to pay for.
The support received from the industry to R&D activities and for the formation of
HSHR is extremely deficient. As it was said above, Private Sector tends to want
short-term solutions and researchers are not usually able to provide it, furthermore
the relation between these two sectors tends to back off when it comes to invest
money. But, links with local industry are vital for both parts, for the researchers to
understand the problems that the producers have and for the producers to 14 Together they represent the 64% of the incomes of the GNP. The rest is produce by the 99% of firms.
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understand how can research help them. In general, researchers are unaware of
the needs of the industry. So, the problem is partly cultural but also due to that
SMEs do not have enough capital for research.
In summary, adjustments must still need to be made to apply the basic NIS
scheme, that means to increase effort to improve human resources competencies;
training in complex skill, experience and conscious that permit a country’s
enterprises efficiently to buy, use, adapt, improve and create technologies in order
to capture the specific dynamic of the interactions, linkages and networks among
the actors in the Mexican Innovation System (Cimoli, 2000). Moreover, the future of
Mexico's economic success depends in large part of the development of effective
strategies and policies for science, technology and innovation in both the public
and private sectors. HSHR needs to be considering as the principal key to achieve
these objectives.
3.1 Present and Required Transitions
Mexican S&T capacity has expanded considerable in recent years. Today, Mexico
has a strong system of higher education and research institutions with a number of
advanced research centres of excellence. R&D infrastructure has been expanded
and access to telecommunications is widespread within the universities’ system.
The National System of Graduate Education15 is in a position to train an increasing
number of graduate students. Institutional arrangements have become more
flexible, particularly within the leading universities16 and research centres, and
priority has been given to developing technological and innovation activities.
A number of research funding schemes have also been created (Fondos Mixtos y
Sectoriales) in the recent past, new tax incentives17 have been made and firms that
are involve in R&D activities are allowed to import research inputs free of duties.
15 A significant number of the professors who teach inside it have obtained their highest degree abroad mainly in the US, UK, and France. 16 UNAM, CINVESTAV, UAM, IPN, UPN. 17 In 1999 there was emended the 15 article of the Federation’s Income Law, to allows for tax break and incentives to the privates that incrementally spend on technology innovation activities.
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What is more, is the creation of a new Scientific and Technological Research Law18
and the establishment of a special board composed of representatives of the
scientific and business communities to advise the executive on S&T policies and
programmes. International flows of trade, knowledge and people have been
considered as essential inputs for the major national innovation endeavours,
already in progress (Valenti et al, 2000).
In spite of the important progress that had been made, other issues are still being
addressed. Although the numbers with graduate training have increased in recent
years, there is a continuing need for more young people to pursue advanced
courses of study in the best national and foreign institutions specially in the science
and engineering fields. Decentralisation of research facilities continues to be a key
issue in spite of the progress made.
Mexico is still highly dependent on technology imports, technology adoption and
diffusion; that are still considered more important than local research. Mexican
R&D activities need to have more emphasis on projects directed towards solving
problems of national importance; for that, it is necessary to strengthen effective
links between academic and industry and the need for a greater diversification of
funding sources including increased participation of private investment and the
implementation of a powerful national strategy for innovation. (Valenti et al, 2000).
In other words, more research funding needs to come from the industry and more
joint research between public research institutions and the productive sector needs
to be done, this would enhance flow X2.
All the recent effort and the recognition of the weaknesses have made known that
Mexico have recognised the value of the development of S&T and its importance to
economic growth and innovation performance. Moreover, it seems that the
creation, formation, training and development of HSHR are taken as innovative key
policy to enhance the organizational change and technological development inside
the Mexican Innovation System (X2).
18 This law provides additional budgetary flexibility for research centres and allows firms that make some R&D activities to apply for funds. Also creates a national S&T database.
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International Organisations such as the World Bank and the OECD have
suggested most of the recent programmes implemented in Mexico19. One of this
project was designed to support productivity growth and to improve the
effectiveness of the creation in knowledge. Its principal aim was “to promote the
generation, diffusion, and application of knowledge for innovation in support of
economic and social development” (World Bank, 1998, 2).
These recommendations seem to be the base of some of the sectional
programmes of the National Plan for Development 2001-2006 (NPD). The NPD
conceived policies in order to coordinate activities among academy, industry and
government to strengthen the domestic innovation system, an issues that are
certainly crucial to the development and the economic growth of the country. The
NPD tries (a) to increase the effectiveness of investment in innovation; (b) to
strengthen the formation of HSHR; (c) to generate knowledge with potential
applications to economic and social development; (d) to encourage enterprise
investment; (e) to increase involvement between industry with universities; (f) to
support bridge institutions; (g) to finance joint university-industry projects; (h) to
develop new fields, which are relevant to Mexico’s needs; (i) to strengthen
scientific and technological capacity and; (j) to develop Venture Capital Fund
(Presidency, 2001)
CONACYT, the Ministry of Education (SEP) and the Ministry of Economy (SE) are
the principal bodies that are in charge to carry out the S&T strategies. These
bodies will establish the mechanisms of coordination and collaboration necessary
to support and strengthen jointly the formation and training of HSHR; the graduate
studies, putting special attention to the increase of their quality; the consolidation of
academic-industry research groups; and the involvement of the productive sector
in R&D and technological development in all the areas of knowledge with the aim
19 The Knowledge and Innovation Project was signed in 1998, and it gave to Mexico around $300 Million USD. The principal actions suggested were (a) increase the availability of scientific and technological human capital; (b) the creation of a pilot private sector-led venture capital scheme and (c) enhance linkages between university-industry to foster the development of technology within firms through financial support for joint activity and technical assistance to bridge institutions; In other words, to improve the performance of the Mexican innovation system (World Bank, 1998).
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of increase the competitiveness and innovation activities inside the NIS
(Presidency, 2001).
The Special Programme of Science and Technology 2001-2006 (S&T programme)
principal goal is to settle down the national investment in R&D activities that will
need to be 1% of the GNP by 2006, considering that the Federal Government will
invest the 60% and the productive sector the rest. Figure 5 compares the current
cost in R&D activities and the projections for the 2006. Figure 5
National Expenditure in S&T 2000 (Thousand of million MXP 2001)
Public Sector Activity Total
$ Conacyt
$
HEI Private Sector
$
Foreign Sector
$
TOTAL $
% %
GNP
Expenditure In R&D
14.0 1.7 2.5 5.7 1.3 23.5 68.5 0.40
Graduate Education
4.6 1.3 2.1 4.6 13.4 0.08
S&T Services
6.2 0.2 0.1 6.2 18.1 0.11
TOTAL 24.8 3.2 4.7 5.7 1.3 34.3 100 0.59
Source: CONACYT Projection
National Expenditure in S&T 2006 (Thousand of million MXP 2001)
Public Sector Activity Total
$ Conacyt
$
HEI Private Sector
$
Foreign Sector
$
TOTAL $
% %
GNP
Expenditure In R&D
42.7 10 2.6 31.1 1.3 77.7 67.1 1
Graduate Education
13 8.5 5.5 4.5 17.4 15.1 0.2
S&T Services
11.2 2.9 2 9.5 20.7 17.9 0.3
TOTAL 66.9 21.4 10.1 45.1 1.3 115.9 100 1.5
Source: CONACYT Projection
Also the Programme raises the strategies, the action lines and the sectional
programmes of S&T to allow that these goals would be reached with cost efficiency
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and high quality. Moreover, it establishes the necessity to increase substantially
its personnel dedicated to R&D activities and the technological development; for
that, the S&T programme suggests to increase from 25,000 to 80,000 the number
of researchers (figure 6), while 30,000 will work inside the productive sector. In
other words the S&T programme is designed in order to promote among
entrepreneurs the idea that the formation, absorption and retention of HSHR is an
advance to increase productivity and foster innovation (CONACYT, 2001).
Figure 6
Total of Graduate Personal in R&D activities, 2001 - 2006
2001 2006 SECTOR
ESP. MASTERS PHD TOTAL ESP. MASTERS PHD TOTAL
Researchers in the Academic* Sector Total
7,290 5,210 12,500 17,807 10,218 28,025
SEP-CONACYT R. C. 1,050 1,200 2,250 3,116 2,725 5,841
Public Research Centres 2,925 2,325 5,250 8,681 5,279 13,960
TOTAL 3,975 3,525 7,500 11,797 8,004 19,801
FIRMS TOTAL 1,515 3,030 455 5,000 27,000 3,896 1,278 32,174
TOTAL IN R&D 1,515 14,295 9,190 25,000 27,000 33,500 19,500 80,000
* Include personal dedicate to R&D activities
Source: CONACYT, Survey in Technology R&D, 2000, and ANUIES, Annual Report of Graduate Studies, 2000
The Programme establishes a structural change in the efficiency and efficacy use
of the resources. There are four main structural change suggested: (1) to support
projects oriented to the industry problem-solution with the endorsement of the
government agencies in charge to solve it and that involve research groups instead
of individual researchers in order to generate networks between the different
centres and agencies; (2) to promote a higher education of high quality with the
specific aim to create specialists, scientists, humanists, technologists and
researchers able to innovate and to transmit knowledge; (3) to support projects
oriented to enhance competitiveness inside the productive sector and that
generate research partnerships between companies, research centres and HEIs
without neglecting the basic research; and (4) to support projects that have a direct
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impact in the regional development to accelerate the decentralization of the S&T
activities (CONACYT, 2001).
Related to the formation and strengthen of HSHR, the programme puts forward
that it is necessary (a) to give annually an increasable number of no reimbursable
scholarships to enhance technicians studies until reaching 300,000 in the 2006; (b)
to give annually a increasable number of “becas-crédito” for do master and PhD
programmes from 6,000 that are giving in this year until reaching 22,400 in 2006;
(c) to obtain that from 1,187 students who graduate annually in the level of PhD in
the 2000 goes to 2,300 in the 2006; (d) to obtain that by the 2006 the number of
networks of interchange and collaboration between academic bodies of national
institutions have been increased (CONACYT, 2001).
By the other hand The National Programme of Enterprise Development 2001-2006
enhances the productive sector to increase the investment in S&T activities from
5.7 to 45.1 thousands of millions of MXP by the 2006 (figure 5), which includes the
formation and training of highly skilled personnel - it suggests that the productive
sector needs to hire by the 2006 more than 32,000 HSHR in contrast with the
5,000 that are already in; the development of technological services; and the
investment in R&D activities (SE, 2001).
The Ministry of Economy with the intention to support SMEs and to increase its
productivity and competitiveness, has designed the following programmes: (1) The
Technological Forums, which allow to tie directly SMEs with centres and institutes
of applied research and technological development of the country, in order to solve
their problems of technological character. This way, the technological culture of
the enterprise sector is fomented and it helps to its modernization and increase of
its productivity and competitiveness. (2) The System of Quality with base in Norm
ISO 9000 Programme20, its objective is to give support and advice to SMEs that
wish to implement a System of Quality (SE, 2001). (3) The Technical Education 20 The National Committee of Productivity and Technological Innovation, A.C. (COMPITE) organism without profit aims, is the one in charge to manage the resources transferred by the SE as well as the income received by concept of Diagnosis, Consultancy, Revision of Advance and Qualification that the Program offers.
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and Training Modernization Project, its objective is to initiate a process of structural
change in which the formation and training of human resources becomes the
central axis of the increase of the productivity and competitiveness of the firms. To
reinforce this programme the Ministry of Economy in relation with the Ministry of
Labour has created the Industrial Training Programme (PECE21) to support SMEs,
in spite of that, these programmes are not directly related with HSHR, together
promote the cultural change because allow Firms to train their workers in the
operation of new technology (SE, 2001).
In summary The National Programme of Enterprise Development suggests that
through a cultural change focused in technological development and the creation of
technological base firms, the productive sector will be able to hire more HSHR;
therefore will allow firms to innovate and compete advantageously in benefit of all.
Also the National Plan of Development tries to (a) establish the right business
climate to innovate and invest in HSHR; (b) strengthen the national capabilities
(infrastructure) and enhance the creation and transmission of knowledge (HEIs and
Research Centres); and (c) promote collaboration in the science and innovation
systems between the three actors. These will put Mexico in conditions for
successfully participate in the new economy which is characterized to be highly
competitive and opened.
CONCLUSIONS
In Mexico it appears to be a public misunderstanding of the value of science and
technology to the welfare of firms and society. It seems that Mexico has a poor
performance system for knowledge and innovation; low productivity
growth/investment in firm upgrading; lack of demand-driven technological support
institutions; low effectiveness of research programs; and inadequate research and
graduate training policy at universities. But even these arguments, Mexico has
recognised the value of the development of S&T and its importance to economic
21 Nowadays there are 6,746 firms register in the programme and 1,373,874 workers have been beneficed. The Inter-American Development Bank finances the PECE.
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growth and innovation performance. Indeed, Mexico has made efforts to
restructure its knowledge and innovative processes. As a result, the new S&T
policy can effectively be implemented to improve firms’ competencies, so firms will
be able to efficiently buy, use, adapt, improve and create new technologies.
The formation of HSHR is what truly allows a country to be competitive; reason
why HSHR need to represent the leading investment of the country. For this
reason, it is necessary to set out that the creation of knowledge needs to represent
the key motor for the development. In Mexico, the creation, formation, training and
development of HSHR is taken as innovative key policy to enhance the
organizational change and technological development.
In my perception the strategies and policies to strengthen the countries capabilities
are well orientated, particularly the ones related with the formation of HSHR, but it
is still an unknow if all these objectives and strategies would increase the demand
of HSHR in the labour market (X2 & Y2), specially in the productive sector.
However, to create these, it is necessary that the Government brings firms and
businesses closer to the Programmes of HSHR formation to strength and speed
the flow of high-level human resources to all sectors of the economy. So, sharing
cost through signing collaborative agreements, firms will be able to efficiently
absorb what the country produces in HSHR.
In summary the future of Mexico's economic success depends in large part of the
technology and innovation development in both, the public and private sectors and
in considering as a principal key factor to achieve these objectives the formation of
Highly Skilled Human Resources.
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ELECTRONIC RESOURCES Mexican Ministry of Economy (SE) http://www.economia.gob.mx/ Mexican National Bank for Exterior Commerce (BANCOMEXT) http://www.bancomext.com Mexican Ministry of Education (SEP) http://www.sep.gob.mx/ National Council for Science and Technology (CONACYT) http;//www.conacyt.mx/ Mexican Ministry of Labour (STPS) http://www.stps.gob.mx/ Mexican Ministry of Foreign Affairs (SRE) http://www.sre.gob.mx/ Sistema de Información Empresarial Mexicano (SIEM) http://www.siem.gob.mx Mexican Presidency http://www.presidencia.gob.mx World Bank http://www.worldbank.org Organization for Economic Cooperation and Development http://www.oecd.org Inter-American Development Bank http://www.iadb.org
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