Technological Capabilities and Global-Local Interactions: The Electronics Industry in Two Mexican Regions

Summary The evolutionary approach to technical change considers technological capability building as the outcome of interactions among individuals, firms, and organizations within a socio-economic and institutional framework in a geographically defined space. This paper aims to study technological capabilities by combining the analysis of both micro and meso levels, emphasizing the role of global-local interactions. It addresses the following research question: what are the main determinants of advanced technological capabilities of firms and regions in an FDI-dominated manufacturing sector? We study the case of the electronics industry in two regions of Mexico. The methodology allows accounting for process and product-centered capabilities in the case of the firms, and for components, attributes, and relationships in the regions.