Technological capabilities and global–local interactions: the electronics industry in two Mexican regions

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.