By Adina Moloman
Mexico is a federal state, where its sub-national governments have extensive regulatory powers. For instance in the case of Baja California the state authorities with its municipalities have the capacity to design, implement, and enforce their own regulations when it comes to industrial competitiveness and measures to attract foreign direct investment.
The regulatory framework establishes that the three levels (federal, states, municipal) will concur in specific governance matters and competitiveness policy is one of them.
Baja California shows a strong ability to attract investment and create jobs. Its regional policies are oriented towards clusters emergence and innovation systems. The state policies are oriented to create a business-friendly environment.
The state is promoting several clusters, such as automotive, medical, electronics, aerospace, among others.
In order to achieve this the state creates its own tools, including regulatory policies and strategies, institutions, and other policy tools.
One of the main tools to promote competitiveness in Baja California is the Law to Promote Competitiveness and Economic Development that was approved in 2005.
To support this law a Working Group on Regulatory Reform was established, where the state, municipalities, and the private sector are responsible for the review of laws, rules, and procedures with an immediate impact on regional business activities. After that, the same working group has the power to elaborate proposals for regulatory reform regarding competitiveness and attracting investment.
In this particular case SEDECO is an institution that counts with an office in charge of collecting economic information and foreign direct investment data and also has the power to support local investment through different programs and funds.
Besides the Law to Promote Competitiveness and Economic Development, there are other programs in charge of supporting the Sector Manufacturing in Mexico such as innovation funds and training programs.