IT@BAJA
April 2007
IT@BAJA
April 2007
• Closest State of Mexico to Asia
• Neighbor to California the 7th most important Economy in the World
• Part of North America’s High-tech Corridor
• 6 Border Crossings
• Symbiotic Regional Culture
Baja California Location
Baja California Location
• Airports: Tijuana Mexicali Ensenada (Private) San Diego Los Angeles Yuma / Imperial Valley Phoenix
•Sea Ports: Los Angeles, Ca. San Diego,Ca. Ensenada, Mx
•RailroadConnection between Union Pacific and Ferromex
LOGISTICS
• Communications. Telecom, Broad Band Services and other technology communications services (over 600 thousand tel. lines).• Industrial Parks: More than 77 Industrial Parks and Industrial Complexes. Industrial Developers, USA Building Standards, Flexibility and support.•University Research Parks: 4 Parks, focused on Information Technology, Biotechnology & Specialized Electronics Applications (UABC & CETYS).
•Electricity. 4 Main sources available +2 (exports): Rosarito Geothermal Plant 1,168 MW CERRO PRIETO Geothermal plants(2) 720 MW INTERGEN (Private) 1,165 MW
SEMPRA ENERGY(Private) 600 MW Total Production 3,653 MW
• Water. Main source: Colorado River with 1,850 M3 Per Year.
•Non Hazardous Land fill.
• Natural Gas. Available in the majority industrial zones in Baja California.
Baja California Infrastructure
**Proprietary to Technology and Industrial Services de Mexico SA de CV**
Baja California in numbersBaja California in numbers• GDP Participation: 3.42% (Mexico 625 BD-US)
• GDP Growth Rate: 7% (estimated 2005)
• 2005 Total Exports: $10.91 BD Total Imports: $8.67 BD
• 5 municipalities (Mexicali, Tijuana, Tecate, Rosarito, Ensenada)
• 15 High added value Industry Sectors (diversified)
• FDI Investment Ranking: 3rd (2005 bellow Mexico City and Nuevo Leon)
• Total Population: 3.3 million
• Population Growth Rate: 4.15% (higher than the national average)
• 114 Higher Education Institutions & 114 Technical Training Centers & 17 Research & Development Centers
• Over 20 thousand students enrolled in Science, Engineering & technology fields (2005-2006).
• Over 7 thousand graduates in IT related fields (2000-2004)
• One of the top ranking Public University in the Country (UABC)
• Ranked as one of the top 5 most competitive states in Mexico (Baja California, Mexico DF, Nuevo Leon, Aguascalientes, Baja California Sur).
• GDP Participation: 3.42% (Mexico 625 BD-US)
• GDP Growth Rate: 7% (estimated 2005)
• 2005 Total Exports: $10.91 BD Total Imports: $8.67 BD
• 5 municipalities (Mexicali, Tijuana, Tecate, Rosarito, Ensenada)
• 15 High added value Industry Sectors (diversified)
• FDI Investment Ranking: 3rd (2005 bellow Mexico City and Nuevo Leon)
• Total Population: 3.3 million
• Population Growth Rate: 4.15% (higher than the national average)
• 114 Higher Education Institutions & 114 Technical Training Centers & 17 Research & Development Centers
• Over 20 thousand students enrolled in Science, Engineering & technology fields (2005-2006).
• Over 7 thousand graduates in IT related fields (2000-2004)
• One of the top ranking Public University in the Country (UABC)
• Ranked as one of the top 5 most competitive states in Mexico (Baja California, Mexico DF, Nuevo Leon, Aguascalientes, Baja California Sur).
BUSINESS BUSINESS DEVELOPMENTDEVELOPMENT
POLICYPOLICYVOCATIONSVOCATIONS
COMPETITIVNESS & COMPETITIVNESS & BUSINESS BUSINESS
DEVELOPMENT LAWDEVELOPMENT LAW
CLUSTERSCLUSTERS
FINANCINGFINANCING
TARGETED FDI PROMOTIONTARGETED FDI PROMOTION
CC
OO
MM
PP
EE
TT
II
TT
II
VV
NN
EE
SS
SS
TRAININGTRAINING
TECHNOLOGY & TECHNOLOGY & INNOVATIONINNOVATION
STATE ECONOMIC DEVELOPMENT PUBLIC POLICYSTATE ECONOMIC DEVELOPMENT PUBLIC POLICY
BAJA CALIFORNIA’S BAJA CALIFORNIA’S VOCATIONSVOCATIONS
Reasonable•Consumer Electronics•Food Products•Commerce•Tourism
To Promote•Construction•Wood Products Manufacturing•Information Technology•Automotive Industry•Medical Devices
To Incubate•Retirement AttentionServices•Custom / Luxury Automobile Manufacturing
TIJUANATIJUANA MEXICALIMEXICALIReasonable
•Consumer Electronics•Metal Mechanics•Restaurant Industry•Automotive Industry•Plastics•Commerce
To Promote•Tourism(San Felipe)•Medical Devices•Agricultural•Aerospace•Information Technology
To Incubate•Specialized Electronics•Semiconductor Microelectronics•Energy & Alternative Sources
Reasonable•Tourism Industry•Restaurant Industry
To Promote•Aquaculture•Fishery•Information Technology
To Incubate•Logistics•Wine Industry•Biotechnology•AgroIndustry•Mining•Construction / Naval Repair Industry
Reasonable•Tourism Industry•Restaurant Industry•Manufacturing & Commerce of rustic & hand crafted furniture
To Promote•World Class Tourism Destination•Select Manufacturing•Resort Hotels
To Incubate•Sport Fishing•Film Industry•Theme Park & Family Destination
ENSENADAENSENADA ROSARITOROSARITO
TECATETECATEReasonable
•Food & Beverage•Manufacturing•Electronics•Plastics
To Promote•Hand Crafts•Clay Products•Wine Industry
To Incubate•Eco Tourism•Resort Hotels•Automotive•Retirement Homes•Health & Rehabilitation Centers
Technology Based Clustersin Baja California
Technology Based Clustersin Baja California
Medical Devices
Display devices (electronics)
Automotive
Aerospace
Life Sciences
Microelectronics / Semiconductors
Information Technology
IT Sector in Baja California
IT Sector in Baja California
After 4 years of combined efforts:
• Over 112 IT business organizations in Baja California (companies, freelance, integrators, etc.),
• IT@baja Cluster integrates 43 IT companies,• 42 SME +1 Anchor Companies generated 28 mdd in Software
related Revenue in 2005,• Cluster SME’s represent 95% of software companies,• More than 4000 high-tech & high added value jobs, (SME’s & 4
Anchor Companies + Government & Foreign Companies Software Development Centers)
• 4 integrator companies (2 Soft. Dev, multimedia, Medical, Web) • 5 Anchor companies collaborating with the cluster• Full integration with business organizations, government &
academic sectors.
After 4 years of combined efforts:
• Over 112 IT business organizations in Baja California (companies, freelance, integrators, etc.),
• IT@baja Cluster integrates 43 IT companies,• 42 SME +1 Anchor Companies generated 28 mdd in Software
related Revenue in 2005,• Cluster SME’s represent 95% of software companies,• More than 4000 high-tech & high added value jobs, (SME’s & 4
Anchor Companies + Government & Foreign Companies Software Development Centers)
• 4 integrator companies (2 Soft. Dev, multimedia, Medical, Web) • 5 Anchor companies collaborating with the cluster• Full integration with business organizations, government &
academic sectors.
IT business processes in Baja CaliforniaIT business processes in Baja California
• Government Services & Applications• Telecommunications• Web Based SME’s Packaged Applications• Accounting, Tax, Human Resources Software• Foreign Trade Applications• Gaming Software• Embedded Systems • E-learning• Biometrics• Call Center & BPO Services• R&D Services• CRM & ERP Solutions• Process Modeling• Software Development Outsourcing
• Government Services & Applications• Telecommunications• Web Based SME’s Packaged Applications• Accounting, Tax, Human Resources Software• Foreign Trade Applications• Gaming Software• Embedded Systems • E-learning• Biometrics• Call Center & BPO Services• R&D Services• CRM & ERP Solutions• Process Modeling• Software Development Outsourcing
Baja California’s IT Participation at the National Context
Baja California’s IT Participation at the National Context
• One of the 5 most competitive States to invest in IT business (Baja California, Nuevo Leon, Mexico City, Jalisco, Aguascalientes)
• Pro IT business environment and support infrastructure.• Government aligned IT Industry support program.• Leading IT Cluster Organization IT@baja (Business, Academia,
Government)• 36 Funded IT Related projects with a combined (public/private),
investment of $159.5 million pesos in 3 years.• 15 Universities with related IT Programs.• Over 5,000 students enrolled in IT Related Programs.• Ideal partner for Nearshore outsourcing…
Keep it simple…keep it in Baja
• One of the 5 most competitive States to invest in IT business (Baja California, Nuevo Leon, Mexico City, Jalisco, Aguascalientes)
• Pro IT business environment and support infrastructure.• Government aligned IT Industry support program.• Leading IT Cluster Organization IT@baja (Business, Academia,
Government)• 36 Funded IT Related projects with a combined (public/private),
investment of $159.5 million pesos in 3 years.• 15 Universities with related IT Programs.• Over 5,000 students enrolled in IT Related Programs.• Ideal partner for Nearshore outsourcing…
Keep it simple…keep it in Baja
Were do opportunities exist in Baja CaliforniaWere do opportunities exist in Baja California
• Diversified Industry Experience: Electronics, Medical, Aerospace, Automotive + Information Technology.
• Growing pool of Human Capital (40% growth 2005-2006)• Local Business Organization Support through IT@baja.• New Business Development Law (fiscal & None Fiscal
Incentives).• University Research Park space available (Ensenada,
Mexicali, Tijuana).• California/Baja California Symbiotic Regional Business
Culture.• Easy access to Baja California from the US, Mexico and Asia.• Government (Federal & State) support through the
PROSOFT Program.
• Diversified Industry Experience: Electronics, Medical, Aerospace, Automotive + Information Technology.
• Growing pool of Human Capital (40% growth 2005-2006)• Local Business Organization Support through IT@baja.• New Business Development Law (fiscal & None Fiscal
Incentives).• University Research Park space available (Ensenada,
Mexicali, Tijuana).• California/Baja California Symbiotic Regional Business
Culture.• Easy access to Baja California from the US, Mexico and Asia.• Government (Federal & State) support through the
PROSOFT Program.
STATE’S PUBLIC POLICY GUIDLINE STATE’S PUBLIC POLICY GUIDLINE ON PROMOTING VALUE GENERATIONON PROMOTING VALUE GENERATION
RETAIN & EXPANDRETAIN & EXPAND
ATTRACT STRATEGIC FDI ATTRACT STRATEGIC FDI
PROMOTE EXPORTSPROMOTE EXPORTS
PROMOTE TECHNOLOGY PROMOTE TECHNOLOGY & INNOVATION& INNOVATION
Add
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Pre-manufacturing Manufacturing Post-Mfg.
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DISTRIBUTION OF THE BUSINESS VALUE CHAIN
L1 L5L5
2016 2016 GoalGoal
Technology & Innovation
Strategy
Control of the introduction of new products
Brand and mark-up (overpricing)
20062006
20012001
The function of innovation in the productive & economic escalation strategy
World classWorld classmanufacturingmanufacturing
EVOLUTION OF THE LOCAL ECONOMIC DEVELOPMENT STRATEGIES EVOLUTION OF THE LOCAL ECONOMIC DEVELOPMENT STRATEGIES
Productive Re-conversionOld national & regional
industriesHeightening of worldwide competition
Worldwide Economic RecessionWorldwide Economic Recession
Increasing loss of Increasing loss of regional & national regional & national
competitivenesscompetitiveness
Productive Chains Productive Chains & Clusters & Clusters
of high added value of high added value and technologyand technology
PROINNOVAPROINNOVAPlanPlan
FDI FDI
DrivenDriven
PoliciesPolicies
Local NodesLocal NodesOf InnovationOf Innovation
Coming of the new economyComing of the new economy
BusinessBusiness
DevelopmentDevelopment
PoliciesPolicies
Str
ateg
ies
for
De
velo
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++ AddedValue
++Technological Complexity
Business Clustering Strategy.Value chain rapid scaling due to key and high added value projects.high added value and high-tech manufacturing business opportunities.
Creation of capacities for the innovation & development of technologies with MKT Sense.Capital & Technology Intensive Investments.HC in research, development & design.
Support to previously established industriesAttraction of OEM, EMS, Manufacturing Capabilities
System of Local Innovation Organizations: System of Local Innovation Organizations:
Clusters that don’t necessarily share the same industry sector but they do integrate around the same innovation & technology businesses.
They are networks of businessmen, corporations, investors, scientists and technologists, bankers, universities, strategic support agencies, business
organizations, all focused on reaching a successful development and sustainability of high-tech business.
DRIVING ORGANIZATIONSBCInnovaCCCBCPRODUCENCENTRIS
•PROMOTING ORANIZATIONS•Local Innovation Councils•CDT, CDIM, COPREEN, etc.•CANIETI, CANACINTRA, etc.•City Governments.
•SUPPORTING ORGANIZATIONS•SEDECO/SEE•Ministry of Economy•CONACYT•NAFIN
Local Capacity for Technological Innovation
(High Value FDI, High-tech Jobs,
High-tech business)
•GENERATING ORGANIZATIONS•CENI2T, Design Centers•UABC, CICESE, IPN, UNAM, etc.•H.R. Development Centers•SEE/Science Centers, Museums
Systems of local Strategic Organizations for Innovation
Mexicali, Tijuana-Tecate-Rosarito, y Ensenada
Systems of local Strategic Organizations for Innovation
Mexicali, Tijuana-Tecate-Rosarito, y Ensenada
Business in:Business in:ResearchResearch
+Development +Development +Design+Design
IT Initiative IT Initiative (Embedded Systems,
Gaming &Firmware)
BiotechnologyBiotechnologyInitiativeInitiative
(Biomedical, Biometrics, Aquaculture.)
NanotechNanotechInitiativeInitiative
((Nanomaterials, Nanodevices)
Specialized ElectronicsSpecialized ElectronicsInitiativeInitiative
(Display Tech)
Six great technology & innovation initiatives of BCSix great technology & innovation initiatives of BC
Mechanical Design+Mechanical Design+R&D+TestR&D+TestInitiativeInitiative
(Aerospace & Automotive)
MicroelectronicsMicroelectronicsInitiativeInitiative
(MEMS, ICs, Semiconductors)
1. Science & Technology Parks (Silicon Border + others)1. Science & Technology Parks (Silicon Border + others)2. High-tech Clusters (Software, Biotech, etc.)2. High-tech Clusters (Software, Biotech, etc.)
3. Innova Grant Fund3. Innova Grant Fund4. CENI2T Innovation Centers Program4. CENI2T Innovation Centers Program
5. State Fiscal Incentives5. State Fiscal Incentives++
Federal Government SupportFederal Government Support
AlternativeAlternativeEnergiesEnergies
((Solar, Fuel Cells Etc.)
Government Support Structure
•Business Development Law (Fiscal
Incentives)
•Infrastructure & Public Infra. Support
•High tech & University Research Parks
•Automotive, Aerospace, Biotech, IT
Incubators
•Innovation & Technology Development
Grants
•Private sector Professional services and
support
•Federal support and incentives negotiations
support
Accumulated Investment in Technology Sectors2004-2006 (Millions of Pesos)*
Accumulated Investment in Technology Sectors2004-2006 (Millions of Pesos)*
Program 2004 2005 2006 Total
Federal 25.84 42.26 72.55* 140.65*
PROSOFT 18.84 9.47 39.85 68.16
TECNOLOGY SME’S 4 17.79 28 49.79
CONACYT 3 15 4.70 22.70
State 18.29 35.33 82.90* 136.52*
SEDECO/Prosoft 11.29 7.83 15.7 34.82
SEDECO/Pymetec 4 6 4.5 14.50
SEDECO/F.Innova --- 5.5 57 62.50
FONDO MIXTO/SEE 3 16 5.70 24.70
Total F+S Resources 44.13 77.59 155.45* 277.17*
Private Funds 20.35 97.35 499.85* 617.55*
TOTAL 64.48 174.94 655.30* 894.72*
**Approximate investments according to 2006 investment commitmentsApproximate investments according to 2006 investment commitmentsSource:Source: 2004-2006 committed investments: PYME, PROSOFT, 2004-2006 committed investments: PYME, PROSOFT, BC-Conacyt Mixed Funds. SEDECO, SEBSBC-Conacyt Mixed Funds. SEDECO, SEBS
Become part of our Baja
family of companies
Become part of our Baja
family of companies
“Reflect on the past, act on the present, plan for
the future”
Baja California:Baja California:Technology & Knowledge FrontierTechnology & Knowledge Frontier
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