Innovation policy in the agri-food sector: evidence from undeveloped Mexican regions

Mexico has an economic dynamic mostly associated with low added value sectors; regions of Guerrero and Michoacan highlight at national and even international levels in the agri-food production, however, they present substantial lags in their development and competitiveness. The purpose of this paper is to analyze the innovation policy in the agri-food sector of these regions through its regulations and local policy.

The present work has a qualitative approach through a case study with the treatment of units of analysis (UA), in which innovation policy in the agri-food sector as main UA, whose sources of interpretation have been direct observation and documentary sources such as laws and the guiding instruments of the regional public policy on innovation and the agri-food sector.

This paper identifies severe institutional weaknesses, a lack of incentives and structures for generating certainty and innovation capabilities in the agri-food sector. Both regions have weak and poorly articulated institutions in their innovation policy, with few incentives and scarcely defined property rights tending to increase uncertainty among the actors participating in the agri-food sector, although the economic dynamics of both regions is mostly associated with that sector, therefore, the low development and lack of competitiveness are a direct consequence of a minimum priority of innovation policy.

Our research is useful for the academic sphere by contributing to applied knowledge on the implications of innovation policy at the sectoral level on the development and competitiveness of regions, particularly in an emerging country such as Mexico, allowing to generate bridges gaps between theory and practice.

The main contribution is for policymakers, allowing them to compare and facilitate a better design of regulatory and public policy instruments that enable them to address and enhance economic vocations through innovation for regional development.

The research focuses on a debate at the regional level on the institutional limitations of promoting innovation through public policy. This study approaches economic and political processes having as empirical evidence of two undeveloped Mexican regions that stand out internationally in agri-food production. These regions have sectoral dynamics inserted in global value chains but have not achieved a local articulation, which has negatively affected their competitiveness and development. The cases of Guerrero and Michoacan are examples of regions like many others, which present diverse institutional weaknesses and lack of incentives associated with innovation policy that limit the development and articulation of their territorial capabilities.