innovative - Fundación México-Estados Unidos para la Ciencia
Transcription
innovative - Fundación México-Estados Unidos para la Ciencia
Annual Activities Report 2012 © 2013 The United States-Mexico Foundation for Science Fundación México-Estados Unidos para la Ciencia San Francisco 1626 - 205, Colonia Del Valle, 03100, México, D.F. Printed and made in Mexico www.fumec.org Editorial Coordination: Rosario Taracena Editorial Assistance: Stephany Hernández, Yamania Olivé and Jessica Borth Design: Dinorah Mosqueda Index Board of Governors 4 Origins of FUMEC 5 Letter from the Chairman of the Board of Governors 6 Letter from the Immediate Past Chairman of the Board of Governors 7 Letter from the CEO 8 Innovation Based Economic Development 10 FUMEC and its support programs for technology SMEs11 Promoting innovative health technology companies - Elemental Clinical Research: clinical research for a growing market - CECYPE: clinical research for the global pharmaceutical industry Supporting the growth of Mexican IT companies - CloudSourceIT: a 100% mobile world 17 18 21 23 24 - Imagination Films: 3D dreams that become a reality27 Promoting the development of processed food SMEs 28 - Grupo Jaztea: natural fresh tea, from Sinaloa to the world 30 - Avideg de México: the unmistakable flavor of Mexican food33 Opening opportunities for advanced manufacturing firms 35 - Industrias Automotrices RC: innovative, but still traditional37 - Intercovamex: high vacuum equipment with very high added value40 Colombia looks to FUMEC programs to accelerate technology SMEs 41 Advanced Market-Oriented Research - I/UCRC: A role model for academia-industry liaison in Mexico Development of Human Resources in Science and Technology 43 45 - CECyTEQ: shaping competitive talent for the knowledge economy46 - Veracruz: children and young people building quality scientific education48 - Motorola and Intel: companies committed to science education 50 Health and Environment - FUMEC supports U.S.-Mexico collaboration in epidemiological surveillance 52 - Encouraging entrepreneurs in low-income communities 54 Strengthening our collaboration with Canada 56 58 59 60 - Directory - Our Offices - Financial Information Board of Governors Warren J. Baker Chairman President Emeritus of the California Polytechnic State University Juan Silanes Vice-Chairman President of the Bioclon Institute Francisco Barnés de Castro Immediate Past Chair Commissioner of the Energy Regulatory Commission Karl Rüggeberg Treasurer Executive Director at Chatsworth Securities LLC Thomas Bowles Executive Director at New Mexico Computing Applications Center José Luis Fernández Zayas Researcher at UNAM’s Engineering Institute William Harris CEO of Science Foundation Arizona Silvia Hernández President-Associate of Public Strategy Consultants Cristina Loyo Varela General Director of the National Laboratory on Advanced Computer Science Nestor Montoya Advisor at the financial services company TIAA-CREF Bernard Robertson Senior Vice President at DaimlerChrysler Corp. Leopoldo Rodríguez Adviser and Partner of various enterprises Cipriano Santos Senior Scientist at Hewlett-Packard Laboratories Mary Walshok Associate Vice Chancellor for Public Programs at the University of California, San Diego Misael Uribe Esquivel CEO at Médica Sur hospital Guillermo Fernández Secretary of the Board CEO of FUMEC Santiago Levy Vice-President for Sectors and Knowledge at the InterAmerican Development Bank 5 Origins of FUMEC “I believe that our countries have a shared path and scientific cooperation is part of it.” Congressman George E. Brown Jr. The United States-Mexico Foundation for Science (FUMEC) is a nongovernmental organization created during the preparatory proceedings for signing the North American Free Trade Agreement, based on a binational accord with the aim of promoting and assisting collaboration in science and technology between the two countries. U.S. Congressman George E. Brown, Jr. played a key role in forming and consolidating FUMEC. As President of the Science and Technology Committee of the U.S. House of Representatives, Brown defended the need to strengthen binational exchange in these fields and his lobbying in the United States achieved the integration of an initial endowment for FUMEC of close to 11 million U.S. Dollars, which was an exceptional grant in assistance awarded to a nongovernmental organization by the U.S. Government. Congressman Brown was an untiring promoter of science and technology. After his death in 1999, he left an impor tant legacy of enhancements to science and 6 technology programs in the United States, standing out collaboration with other countries in this field. Two important players in establishing FUMEC were the scientific advisors of the Presidents of both countries, Guillermo Soberón Acevedo in Mexico and Alan Bromley in the United States, who were in charge of organizing work groups and ensuring that a commitment to create the Foundation was reached by both governments, which was formally established as an organization with legal status in both countries since 1993. The United States-Mexico Foundation for Science, continuing with the spirit of collaboration that distinguished the work of Congressman George E. Brown, Jr., is seeking to become an entity that brings together binational efforts by identifying opportunities, creating synergies, integrating programs with objectives of binational interest, and searching for results in the fields that it is working. Letter from the Chairman of the Board of Governors The Foundation has been expanding and consolidating its role as a catalyst for collaboration between the United States and Mexico in science, technology and innovation in an effort to help solve important problems that are of interest to the two countries. To this effect, it is very important to have available scientific and technological training that allows all those involved to be better prepared to contribute to finding solutions to the greatest challenges faced by our countries. One of the most pressing issues regarding competitiveness is undoubtedly improving education in regards to science, technology, engineering and mathematics (STEM education). FUMEC understands that to achieve this goal it is essential to work as a team and continue to generate partnerships between academia, industry, government and civil organizations. Improving STEM education has been a major goal of the United States and holds the highest priority within President Barack Obama’s administration. As a result, great impetus has been given to these activities and programs related to them are being improved and expanded. Studies of STEM education programs have shown that they promote the development of critical and independent thinking skills, teamwork and problem solving skills.These are all essential in order for individuals to have more opportunities and make greater contributions to the development and application of scientific and technological advances. In the last ten years FUMEC has promoted collaboration between the two countries in STEM education, and in Mexico it has facilitated the use of experiential and investigative basic level science education systems. This has been done through Innovation on Science Education (INNOVEC as abbreviated in Spanish). INNOVEC has used the experience of institutions such as the Smithsonian Institution Science Education Center and other institutions in the United States and has drawn on the experience of countries like France, Argentina and Brazil, to name just a few. In the last decade, INNOVEC has trained more than 30,000 teachers in 12 Mexican states, now benefitting 425,000 students annually. The results obtained by this program have led to the backing of federal and state authorities, as well as additional support from companies such as Motorola Solutions Mexico, Dow Chemical and Intel. FUMEC has also supported collaboration between the two countries in STEM education at the college level, through the Engineering Basics program in High School Education with the College of Science and Technology in the State of Queretaro (CECYTEQ as abbreviated in Spanish). The experiences of the South Texas Science Academy with programs such as Project Lead the Way (PLTW), and the University of California with its Mathematics Engineering and Science Achievement program (MESA), have been taken advantage of.This program has been very successful and is now an excellent reference for FUMEC activities. Throughout 2012 the Foundation opened new opportunities for collaboration between the two countries in STEM education at the university level.The groundwork for collaboration between CONACYT and the National Science Foundation in an effort to promote collaborative academia-industry cooperation was laid, creating partnerships with long-term vision. I am very pleased to be part of the efforts of an organization such as FUMEC, which has the vision and commitment needed to propose solutions that allow us to move steadily toward greater development and prosperity in our countries. Its programs in education, innovative business support and industry and health applied research show this to be true. Sincerely, Warren Baker President of the FUMEC Board of Governors 7 Letter from the Immediate Past Chairman of the Board of Governors In May of 2012 in Washington, we celebrated the 20th anniversary of FUMEC in the United States. The Foundation was honored to have the participation of many distinguished guests such as John Holdren, Advisor to President Barack Obama on Science and Technology; Arturo Sarukhán, Mexican Ambassador to the United States; Mario Molina, Nobel Laureate in Chemistry and Martha Brown, widow of Congressman George Brown, who was a key figure in the creation of FUMEC. At the celebration, these individuals affirmed their support for the initiatives and projects of the Foundation and recognized FUMEC as an organization that contributes to the implementation of solutions and the creation of opportunities for development in North America. Throughout its history, FUMEC has been known for being flexible and creative and for translating global experiences into actions and programs that promote social and economic growth locally, nationally and internationally. This role as an articulator of efforts has allowed FUMEC to identify the interests and meet the needs of today’s knowledge economy, and to be a pioneer in developing initiatives that both countries need to become more competitive. The experience gained over the last 20 years has resulted in programs that support successful technology companies by taking advantage of the best experiences of programs in the United States and Canada, to allow these companies to grow and become sustainable in a highly changing and competitive global market. Thanks to the support of FUMEC and the TechPYME program, hundreds of Mexican companies have been able to identify existing market opportunities, and refocus their business plans to take advantage of these opportunities. Also, more mature companies have received very high level business advising from the TechBA acceleration program and as a result, have discovered new business openings in global markets. The effectiveness and robustness of the Foundation is now recognized by many public and private actors due to the impressive results achieved by their programs. After 20 years of work, FUMEC is certainly a major player in 8 science, technology and innovation in both Mexico and the United States, and even in countries like Canada, who see the Foundation as an ally for increasing collaboration among North American countries. This report details the progress achieved by FUMEC during 2012 and recognizes the Foundation’s great efforts in helping to create a better life through science, technology and innovation. One of the great strengths of FUMEC, is its ability to foster cooperation with institutions and organizations that rely on the Foundation’s experience and knowledge. I would especially like to thank the Secretariat of Economy, the National Council for Science and Technology and the Mexican Institute of Industrial Property for their support. These institutions have worked with FUMEC to benefit technology companies and researchers, but also, to ultimately contribute to the creation of a culture of innovation. I would also like to thank my colleagues on the Board of Governors, for the support they have given us during the time I was at the head of this body. Their experience and knowledge have enabled the Foundation to achieve greater focus and to have a stronger impact with their programs. I am sure that this organization will continue to make a strong contribution in achieving a better quality of life for both our countries. Sincerely, Francisco Barnes de Castro Chairman of the Board of Governors of FUMEC from 2011 to 2012 Letter from the CEO A central goal of FUMEC is to open new avenues of cooperation in science, technology and education, and to promote the economic and social development of Mexico and the United States, in the context of regional cooperation in North America. During 2012, we made strong advances in the innovation and internationalization of Mexican companies by facilitating partnerships with organizations, companies and government agencies in the United States, Canada and other countries. This year, we also expanded educational collaboration in science, technology, engineering and mathematics (STEM) and opened new opportunities for collaboration in research oriented towards the needs of companies and government organizations.We continued channeling program resources from the United States government to Mexico for binational health and environment programs. A change of federal government in Mexico occurred in 2012. As a result, part of our energy has been directed at maintaining close contact with the transition team and with those who will shape the new policies in Mexico. These efforts have been to ensure that collaboration with our allies in North America in science, technology and innovation is central to addressing many of the great challenges facing Mexico, including quality education, supporting entrepreneurs and boosting innovation as an engine for development. In 2012 in Washington DC, we celebrated the 20th anniversary of the creation of the Foundation in the United States.This celebration provided the opportunity to bring our Board of Governors closer to the heads of government offices and non-governmental organizations who have worked with and supported FUMEC over the years. It also helped to open new opportunities, for example, with the National Science Foundation in the field of Industry-University Consortium with long-term objectives, and the National Institutes of Health on research and development to address diabetes and its complications. The 20th anniversary celebration in Washington received an excellent response from key organizations in the United States, especially from the White House Office of Science and Technology Policy, an organization that coordinates and promotes science, technology and innovation activities in the U.S. These interactions show a favorable outlook for further advancing tri-national cooperation on these issues, to generate a more competitive region in the global context. We are pleased with the results we have achieved, both with the companies we have served through our TechBA and TechPYME programs, as well as with our programs that promote childhood education in science and technology. In addition, we welcomed the establishment of a new line of action of FUMEC aimed at advanced market-oriented research and are proud to see excellent results in our surveillance and food safety programs. The work in all of these areas favored new relationships with local and federal associations, as well as with key stakeholders who define regional development policies.We have also expanded our collaboration with international organizations such as the Inter-American Development Bank and the World Bank and have maintained a close relationship with the U.S. Embassy in Mexico. The results shown in this report are reflective of the efforts of more than 120 people who worked with us throughout 2012. We appreciate the commitment that they put forth every day to better position FUMEC as a major player in binational collaboration I would also like to thank the invaluable support we have received from our Board of Governors, who have provided guidance and support to us and have enthusiastically shared their knowledge, experience and contacts. Last but not least, I want to thank all of the organizations and individuals who have been allies of our projects and initiatives, because without them we could not move forward in achieving our goals. Sincerely, Guillermo Fernández de la Garza Chief Executive Officer of FUMEC 9 Results by Programatic Area Innovation Based Economic Development Innovation is the motor of the transformations that will keep the Mexican economy competitive. Mexico is way behind many of its allies and competitors in innovation-related indexes. There is an urgent need to step up the pace in technological and corporate ecosystems that support innovation in businesses. FUMEC has facilitated valuable interactions between Mexican, U.S. and Canadian organizations that have expanded the view of Mexican experts, business leaders and government organizations in terms of the mechanisms and programs which can be developed and strengthened by leveraging the best experiences of the three countries. Some of these mechanisms and programs, such as TechPYME and TechBA, have already been rolled out as a preview to the kind of programs that might be implemented at national level with international partnerships and referents. This involves the creation of sectoral innovation networks in specific regions, and nationally, the alignment of companies’ technological strategies with the development of education and research institutions, and with the support of the relevant government programs both at state and national level. In other cases, there has been support for initiatives like that of Dr. José Narro Robles, Rector of the UNAM, to integrate a National Science, Technology and Innovation Agenda, and that of Antonio López de Silanes to create the Business Foundation for Innovation, a clear sign that innovation is a key issue for business leaders in Mexico who are willing to build a collaboration program with the Federal Government through this Foundation. Furthermore, there has been collaboration with the Science and Technology Advisory Forum in other initiatives, such as the “National Innovation Agency,” and efforts involv- ing the United States National Research Council (NRC) and Canada’s Science, Technology and Innovation Council (STIC), underlining the importance of mechanisms that are independent from the organisms that operate innovation support programs, to study, propose, manage and ultimately evaluate the country’s initiatives in innovation. The following pages describe FUMEC’s work to promote economic development based on technological innovation, through local, national and international processes such as the formation of innovation networks to facilitate interactions between academia, industry and government, and through specialized programs for technology firms who work in market niches with high growth potential. 11 FUMEC and its support programs for technology SMEs In 1997 the Foundation began activities to leverage the best experiences of the United States and Canada, to boost the growth of small and medium-sized technology businesses with the help of universities, research institutions and specialized organizations. Through the years, we have been able to build programs directed at technology businesses with rapid growth potential, to help them find counseling and support to develop internationally, taking full advantage of opportunities for technological and business improvement, and join innovation networks focused on strategic economic niches. Around 12 years ago we adopted different elements from programs like the Small Business Technology Development Center (SBTDC), the Pennsylvania Technological Assistance Program (PENNTAP) from the United States, and the Industrial Research Assistance Program (IRAP) from Canada, which have enriched the way in which we provide our services to companies, enabling us to be more timely and effective. Through the years, we have been able to build programs directed at technology businesses with rapid growth potential. In 2004, following an in-depth investigation of the most successful international mechanisms of business support, and in conjunction with the Secretariat of Economy, we created TechBA, the Technology Business Acceleration Program for Mexican technology companies, which today has eight sites in highly dynamic business ecosystems: five in the United States, two in Canada and another in Spain. The experience gained over the years has enabled us to mature our service models and organize the services we give to firms in two programs: TechPYME and TechBA. TechPYME (PYME is the Spanish equivalent of SME) is a program focused on building national innovation networks, particularly with state governments, supporting businesses 12 in strategic economic niches through coordination mechanisms with local institutions and organizations.TechPYME studies and develops the capacities and development potential of technology-business ecosystems in those niches. TechBA is the network that facilitates the internationalization of technology SMEs in the strategic economic niches in which the Foundation works, and is also the point of contact for national innovation networks with the international ecosystems where it operates. Innovation networks: key to the growth of businesses One of the key components of our work through TechPYME and TechBA is the creation of innovation networks, connecting firms with all those players who can support their growth, such as universities, research centers, state and federal governments, clusters, business chambers and tractor companies, among others. Firms that join either of these programs not only gain access to a support program, but also come into contact with different innovation networks in which FUMEC participates, in order to support the firms in the best way possible. We at the Foundation know that an isolated SME must face a series of challenges which can be overwhelming without the support of organisms and actors helping them to grow. However, when a business accesses a support network and an adequate coordination system, it can receive technical assistance, specialized assessment and information and a wide variety of services which enable it to better define its path to strengthen and be successful. FUMEC collaboration networks contribute to the development of technology companies and to the growth of strategic economic niches. Throughout this report we will show how the local networks created by FUMEC support the growth of technology SMEs and how these networks are also effective mechanisms to promote economic development in several states. A clear example of how FUMEC support networks operate occurred in 2012 with our Health Technologies Coordination, which worked in close collaboration with the Mexican Consulate General in Boston to take a group of Mexican companies to BIO 2012, the world’s biggest biotech convention. After the event, the General Consul sent a letter which read, in part: Thanks to the work of FUMEC, it was made clear to the other participating countries and industries that Mexico is also a major player in biotechnology and the life sciences, which contributed significantly to improving our country’s image, enabling different actors to see firsthand the quality and abundance of scientific research in Mexico. FUMEC continues to work with ProMéxico and the Consulate General in Boston to take a group of businesses to this great event again in 2013, further spreading the potential of the country and its biotechnology companies. In a similar way, in April 2012, a Mexican delegation of six companies attended the SAE Congress, a major international automotive convention held in Detroit, Michigan. This time the delegation included three companies supported by TechBA in Michigan, and who, in turn, received suppor t from ProMéxico to attend the event. These and many more examples presented throughout the report show how FUMEC collaboration networks contribute to the development of technology companies and to the growth of strategic economic niches, connecting Mexican regional ecosystems with international business ecosystems, thereby opening endless opportunities for the companies themselves and the actors who drive economic development in Mexico and North America. Focus on high growth potential niches As mentioned earlier, central to the work we do in FUMEC is the organization of innovation and business support networks, which are formed around economic niches or subsectors with the potential to generate new development opportunities. The Foundation has identified more than 15 industrial niches or subsectors which have undergone considerable growth and which offer incomparable business opportunities for SMEs seeking to consolidate and win new markets. A breakdown of these strategic niches is given in the following table. 13 Strategic Niches Identified by FUMEC SEC TOR Information Technologies Automotive Aerospace N ICHE S Cloud computing Mobile technologies Multimedia Advanced manufacturing Advanced manufacturing Overhaul and maintenance Airport services Health Technologies Medical devices Clinical trials New drugs IT for health Food technologies Nutraceutics Manufacturing processes Sustainability Clean technologies (air, water, earth) Alternative energy Microsystems Embedded systems FPGAS FUMEC participates in and promotes networking in each of these niches, allowing us to broaden the horizons of activity for companies through national and international actions such as: • liaison with other government and private programs, • experience and expert knowledge in areas related to their own, • association with similar companies with whom they can build partnerships, • interaction with tractor companies seeking to strengthen their supply chain, and contact with potential investors to finance their projects. 14 TechPYME As already mentioned, the TechPYME program works with technology SMEs in Mexico and forms innovation networks to help businesses develop their capacities. As well as working directly with businesses, another key objective of the program is to strengthen regional ecosystems that work in strategic niches to enable them to generate and mature an ever greater number of companies, in turn boosting new knowledge industries. To achieve this, TechPYME works alongside the state Secretaries of Economic Development to create collaborations which encourage the growth of both businesses and the business ecosystems where they operate. This program also analyzes growth opportunities in the strategic niches in which we work and develops studies to gain insight into market opportunities which businesses can take advantage of. These studies help businesses discover the challenges and opportunities in their industries, and also serve to attract new companies looking to grow in those niches. TechPYME begins by identifying companies eligible to receive support from FUMEC. It then does an evaluation of needs and growth opportunities and draws up an action plan for each company. Later, the companies receive all kinds of services ranging from training and assessment in specific areas, to help obtaining certifications and liaison services with actors and programs to help them grow. Furthermore, this program encourages the development of innovation strategies that the companies can present to federal and state organisms when seeking funding, and facilitate the registration of patents and utility models with national authorities. TechPYME works through a network of Business Technology Advisors who are responsible for identifying the companies, evaluating them and introducing them to the services they need to boost their growth. These advisers work at local and regional level, have areas of specialization, and use tools that are of great use to the companies, including road maps, cash flow evaluation and management skills assessment. The TechPYME service model is summarized in the next graphic. TechPYME Service Model NEEDED INFRASTRUCTURE FOR EACH NICHE Trends and Opportunities Studies Training of Human Resources -Academia -Enterprises Integration of the Business Technology Advisor Development of a Innovation Network for the Niche DEVELOPMENT OF STRENGTHENING PROGRAMS FOR THE COMPANIES Market opportunity analysis workshop BUSINESS STRENGTHENING • Diagnostics • Roadmap • Entrepreneurial tools • Liaison with other support programs and institutions ACTION PLAN BY COMPANY INNOVATION STRATEGIES • Innovation networks • Calls for companies and presentation of projects • Intellectual property • Technological monitoring IDENTIFICATION OF COMPANIES WITH POTENTIAL TO BE INTERNATIONALLY ACCELERATED COMMERCIAL AND TECHNICAL READINESS • Technical advice • Certification advice • Interaction with commercial and • Networking events • Integration to the technological networks TechBA program Results in new products, new markets, access to innovation funds, new organization culture and measurement of impact on sales. TechPYME results In 2012 TechPYME continued to search for and evaluate technology companies with growth potential in an effort to find the SMEs that work in the niches detected by FUMEC and that could be integrated into this program. This was done to combine the portfolio of companies to be worked with in the 2012-2013 period, adding businesses with growth potential to those that had already been identified. TechPYME reviewed and analyzed state, regional and national business directories, and subsequently made several calls to interview and learn more about the companies interested in entering the program. As a result of these efforts, a portfolio of 361 companies that entered TechPYME starting in August 2012 and that will continue to receive services until July 2013 was created.The following table shows the distribution of these companies and the niches in which they work. Results of the TechPYME Program S ECT O R N u mb er of comp a ni es Information technologies 92 Automotive 29 Aerospace 4 Other advanced manufacturing areas 55 Health technologies 68 Food technologies 54 Clean technologies 32 New materials 27 Total 361 15 TechBA The TechBA program was designed to help Mexican technology companies gain access to the most dynamic business ecosystems in the world and expand their operations into international markets, primarily the United States, Canada and Europe.TechBA has eight locations in cities with highly competitive and specialized economic activity: Arizona, Austin, Madrid, Michigan, Montreal, Seattle, Silicon Valley and Vancouver. The TechBA acceleration model is aimed at catalyzing the development of companies, facilitating access to a wide network of high-level international advisors and experts with profound knowledge of the technological processes and markets of each sector. The guidance from these experts enables companies to improve their value offer to ensure international success and guarantee long-term permanence. This program facilitates the interaction of Mexican SMEs with different business environments, allowing them to achieve accelerated growth by creating partnerships, generating new sales and attracting investment. Each TechBA site has a wide network of experts in their economic fields, and key actors and organizations from the region who support the growth of the Mexican companies. In addition to their acceleration services,TechBA offers businesses a pre-acceleration process that consists of ana- lyzing their potential for penetrating international markets and the advantages that would imply for each company from a technical-commercial angle. Pre-acceleration informs companies about their strengths and weaknesses, and improvement opportunities should they want to enter the global marketplace. During acceleration, work centers on improving the value offer of each business. On many occasions this implies deep adjustments to the products and services they hope to launch on new markets. Another relevant aspect is improving the way the value offer of each company is presented to potential buyers, and familiarizing business owners with how business is done in global markets. The TechBA service model is shown below. TechBA Service Model Incorporation and work plan Initial market penetration plan Sales support Business maturation Review of value proposition and market penetration strategy (investment and alliance search) Implementation of “beta test” and interaction with “friendly” clients Directory development and client profiling Integration of an Advisory Council Adaptation of the product or service to the new market (certifications, IP protection, etc.) Consulting and access to network of contacts 16 Refinement of marketing and commercialization strategies Implementation of commercialization tools (campaigns, demand generation, distributor development, etc.) Sales coaching Sales channel development Customer service Evaluation of company’s development Implementation of complementary financial strategies, innovation, and business model review The TechBA program has played an outstanding role in the internationalization of innovation networks involving Mexican companies. The TechBA program has played an outstanding role in the internationalization of innovation networks involving Mexican companies, and in introducing innovative support models to Mexico for the creation of new businesses and the strengthening of technology companies. An example of this is the Bootcamp model, designed to help companies establish successful, sustainable business in a few weeks. Bootcamps allow companies to quickly evaluate whether their business ideas have market po- tential or need adapting. Bootcamp is an opportunity to conduct market research, develop and refine business ideas and build prototypes, as well as validate clients and investment possibilities to ultimately take sustainable products to market. Results of the TechBA Program During 2012, the TechBA program worked with 185 businesses which generated international sales in excess of $140 million dollars. When compared to the resources invested by the Secretariat of Economy to operate the program, this figure gives a $22.88 dollar return on every dollar invested. The following table shows that the return rate of the TechBA program has increased consistently over the last four years. Operation costs of the TechBA program vs. international sales generated by companies in the program (figures in U.S. dollars) 2009 2010 2011 International sales $40,958,171 $95,579,760 $145,024,881 Supported companies 160 228 209 Resources coming from Mexican Secretariat of Economy $5,673,600 $7,432,000 $8,037,037 7.22 12.87 18.04 Rate of return (international sales generated per dollar invested) 2012 $147,761,921 185 $6,459,090 22.88 17 Promoting innovative health technology companies Mexico has enormous growth potential in numerous areas related to health technologies, including medical devices, clinical trials and pharmaceutical industry, medical tourism and information technology applied to health. This section describes the opportunities that FUMEC has identified for the growth of health SMEs in the country, and how we had worked in those niches to boost the competitiveness of businesses and enhance the capacities of the ecosystems in which they operate. Medical Devices In recent years, the country has become increasingly attractive for the global medical device industry and this is reflected in the accelerated growth of domestic production and the growing number of investments received in this area. Mexico is the seventh biggest exporter of medical devices in the world and, according to data from INEGI and ProMéxico, produced $8.56 billion dollars in medical devices in 2011. By 2020, production is expected to reach $14.91 billion dollars.1 In 2011, Mexico exported $6 billion dollars in medical devices and attracted 23 investment projects in the same area.2 This industry has grown at a rate of 6.4%, well above traditional producers like Germany, Japan and Switzerland. According to data from CANIFARMA, between 2007 and 2010, Mexican medical device companies increased sales by 24.2%. Similarly, from 2002 to 2011, jobs in this niche grew from 17 to 32 thousand and are expected to continue to grow with the presence of new companies.1 In early 2013, DHL Supply Chain revealed a study which indicated that the robust domestic demand and a forecasted annual growth rate of 5.2% for 2020, have turned the Estrada Cortés, Jesús (2012). “Medica Devices, a Healthy Business”, in Negocios ProMéxico. October. 1 18 country into “an attractive option for many medical device manufacturers from the United States and other parts of the world seeking to serve the domestic market or improve manufacturing costs with a maquila strategy in Mexico.” Beyond the numbers, Mexican business owners are ready to face a greater demand for their products; in the words of Miguel Ángel Félix Díaz Alonso, treasurer of the Medical Device Cluster of the Californias, “In this region we are used to putting up a fight.The mentality of business owners here is to find the way to do things right.There are many regulations in medical devices and the process for being a supplier can be slow, but we will come on board because by being authorized suppliers we will be on a path towards success.” This cluster includes the majority of medical device companies in Baja California Norte and Sur and maintains close ties with the cluster in San Diego, California, Juárez López de Nava, José Mario (2012). “Medical Devices en Mexico: Opportunities for Baja California”, in Negocios ProMéxico. October. 2 Mexican business owners are ready to face a greater demand for their products. forming one of the most complex and diverse groups of medical products in the whole of Nor th America. Since 2010, the cluster to which Félix Díaz belongs, has been a FUMEC ally, providing support to health companies in Baja California. When asked how the work was going, he said, “In Tijuana we have had a very healthy relationship; through FUMEC some companies have benefitted from help obtaining certifications, attending seminars and courses on project portfolio management, and getting more information about the sector.” Other benefits of being in contact with FUMEC has been broadening the cluster’s spectrum of relationships and getting to know new business environments. “In 2011 we took a trip to Spain,” says Félix Díaz. “We were met by TechBA Madrid and through them we made visits to get contacts, talks and see the kind of support we could get.” This business owner appreciates the Foundation’s work in putting the cluster in touch with new actors because, “The relationships have shown us how we might achieve a different projection. I think we were focused too locally, very much within the region, but FUMEC has allowed us to see things more globally, to see that as a group we need to be related to other sectors and countries, and that we must have greater openness with government, education and other entities.” hacetouch with nwts, chat and see the kind of support we ogoing, the enter the ie accelerate Although this relationship did not immediately bear fruit, in the medium term the companies who participate in the cluster have seen results: “As a sector, it would never have occurred to us to go to Madrid to explore business opportunities, because the whole world naturally tells you ‘we have the United States right next door,’ but this relationship has enabled us to get help for seminars and courses and that is a very valuable result, beginning as a group to have joint initiatives,” concludes Félix Díaz. Elemental Clinical Research: clinical research for a growing market In 2010, six Jalisco doctors decided to develop an intraurethral catheter to administer drugs to parts of the body which are inaccessible by traditional catheters. They realized they needed to do clinical trials and opted to conduct them themselves. And so Elemental Clinical Research was born, a company specialized in clinical research and services for the pharmaceutical industry. To consolidate their project, the doctors attended an incubator of the Tecnológico de Monterrey, where they learned the basics of creating a business. They soon realized they were getting into a very little known area in Mexico, because “even the Tec people struggled to understand our business model,” remembers Luis René González Lucano, Operations Director of Elemental Research. As they continued the incubation process, they discovered that FUMEC offers support to health companies, in particular those conducting clinical research. With the help of Michelle Otero, FUMEC’s FUMEC helped us make many contacts, have opened many doors for us and that is why we are here now. Health Technologies representative in Jalisco, they contacted the Foundation and began to see Mexico’s enormous potential for growing businesses like theirs. In 2012, Elemental Research responded to an invitation from FUMEC to attend the 3rd International Life Sciences Convention, where they met a company called CECYPE, also supported by FUMEC, and began to analyze ways to partner. Today the partnership is a reality and their primary objective is “to strengthen clinical research in our zone,” said González. “We want to offer comprehensive services like CECYPE and CIATEJ to expand the 19 cover to Jalisco which is the second most important zone for the pharmaceutical industry, after Mexico City.” And so, almost without forethought, Elemental Clinical Research entered the clinical trial business at a very opportune moment when there was already a demand for their services. “New medicines are coming into the country because the population has grown a lot, and investors see Mexico as an area of opportunity. Furthermore, we have a privileged position right next to the United States and that enables us to conduct studies very quickly,” explains González. The growth of the industry has meant the consolidation of this company which, despite being only two years old, has already more than doubled in sales and the number of employees. For its founders, part of the success is due to the support received from FUMEC. “They have helped us make many contacts, have opened many doors for us and that is why we are here now,” says González, who predicts that the company “will grow even more, because we have projects ready to sign and that makes us optimistic.” Clinical Trials and Pharmaceutical Industry Another great area of opportunity in health has to do with the development of preclinical and clinical trials for drug development. In 2008, investment in the global drug industry rose to 86 billion dollars. Investment in clinical trials was $54.8 billion dollars in 2009, with a 9.1% growth over the previous year and prospects of reaching a value of $81.2 billion in 2014.3 Today the drug industry is facing the need to develop new products, but is struggling to do so in developed countries because of high costs and problems recruiting volunteers for their trials. As a result, large firms have begun to pass preclinical and clinical trials on to specialized companies known as clinical or contract research organizations (CROs) which develop different stages of the process in certain developing countries. This situation suggests a favorable setting for clinical research in Mexico, since the country has excellent conditions for creating and consolidating companies that function as There is a favorable setting for clinical research in Mexico, since the country has excellent conditions for creating and consolidating companies that function as CROs. CECYPE, 2011. Ensayos clínicos en México: retos y oportunidades. Estudio elaborado por CECYPE a solicitud de FUMEC. 3 20 CROs. A study performed in 2011 for FUMEC found that Mexico underutilizes its capacity to generate this kind of company, and occupies a marginal position (26th in the world) in the conduct of clinical trials in spite of its privileged geographical location, internationally competitive regulations, good number of inhabitants and skilled professionals.3 Furthermore, Mexico is listed among the so-called pharma emerging countries, but the growth of its drug market is below the average for this group and will drop from 11th place in 2005 to 17th in 2015. It is worth remembering that there are more than 200 drug companies in Mexico with the infrastructure to produce drugs to supply a domestic market of $14 billion dollars. Through its TechPYME and TechBA programs, the Foundation has helped develop companies seeking to enter the clinical trial market and the pharmaceutical industry, giving them advice and resources to do so.The support network for health companies that TechPYME has formed in Jalisco is shown in the next page. Support network for health companies in Jalisco A .Clusters 1. Medical Tourism Cluster 2. West Bioclúster 3. Association of Private Hospitals of Jalisco B.Universities and research centers 4. 5. 6. Guadalajara University Center of Research, Technological Assistance and Design of the Jalisco State Center of Research and Advanced Studies of the National Polytechnic Institute C.Government institutions and other entrepreneurial support organizations 7.ProMéxico 8. Jalisco Institute of Information Technologies 9. Council on Science and Technology of the Jalisco State 10. Regional Chambe of the Transformation Industry 11. Jalisco Secretariat of Economic Development 12. National Chamber of Commerce 13. Jalisco Institute of Quality 14. Institute for Development and Innovation within the SMEs In Jalisco, the representative of the Health Technologies Coordination, Michelle Otero, has provided support to 32 health companies with help from the local Ministry of Economic Development and the organisms that form part of the network created by FUMEC. According to Ernesto Baez López, Director General of Sectoral Development and Integration of Jalisco, this state “is the second most important corridor in the country for human pharma and the first in animal pharma,” so support for health companies is vital for the local economy. In the Baez’ experience, “Companies which have participated in FUMEC programs have been satisfied.” Nevertheless, he feels that FUMEC “has tools which as an institution we could leverage a lot more.” Two clear examples of the support that FUMEC provides to health SMEs are Elemental Clinical Research of Jalisco, whose success story was presented on page 20 NN, and CECYPE of Morelia, whose case is given below. Medical Tourism In mid 2012, The New York Times published an article which spoke of the influx of United States citizens who travel to Mexicali seeking medical care.4 The text described how in 2011 more than 150 thousand patients traveled to that city to see a doctor, generating an economic spillover for the local economy of $8 million dollars. The publication of this article was no more than the acknowledgment of the growing popularity of Mexico among United States patients who need low-cost medical care and travel south for everything from dental care to heart surgeries to cosmetic weight-loss procedures. According to the United States-Mexico Chamber of Commerce (USMCOC), medical tourism in Mexico has enormous growth potential, made popular by rising health costs in the United States and improvements in other countries in the standards of care and the technology they use.5 USMCOC (2011). Tourism Development, Medical Tourism, and Safe and Secure Tourism in Mexico. Issue Paper 3. Retrieved from http://www.usmcoc. org, on February 2013. 5 Medina, Jennifer (2012). “Mexicali Tour, From Tummy Tuck to Root Canal” artículo publicado en The New York Times el 27 de junio de 2012. 4 21 CECYPE: clinical research for the global pharmaceutical industry CECYPE executives are convinced that Mexico can become a world leader in preclinical and clinical research. “We need to create an environment that converts the country into a hub, because the best way to grow this industry is to have more people developing research,” explains the engineer Jorge Herrera, CEO of the Morelia company. A couple of years ago, at FUMEC’s request, CECYPE made an analysis of Mexico’s opportunities in this industry and found that the country did not leverage its growth capacities and is in a secondary position, 26th in the world, despite its incomparable geographical location, competitive regulations, a good-sized market and competent professionals. “Hence, we’re looking for the opportunity to develop that capacity in Mexico,” continued Herrera. We need to create an environment that converts the country into a hub for clinical trials. It all seems to indicate that the pharmaceutical industry will continue to demand specialized research services, which motivated CECYPE to partner with the CIATEJ research center in Jalisco to start new preclinical, clinical and analytical trial units, and generate new units as growth demands. The said units will be built in two or three cities and serve to evaluate biotechnology and bioequivalent medicines, pharma chemicals, medical devices, new treatment schemes and even functional foods. Paradoxically, this national expansion plan is the result of the CECYPE’s exposure to international markets which they had the opportunity to explore thanks to TechBA Madrid, a program it entered in 2009 and that helped it set up a company in the 22 Volunteers on a study conducted by CECYPE. Photo courtesy of the company. Basque Country by the name of CECYPE Europe. There, the company is about to begin an investigation on the genetic factors which predispose renal impairment, through an alliance with the University of Euskadi. Although CECYPE has been well received in Spain, things were different in the beginning; the Spanish were skeptical. “There had been total incredulity about Mexico’s capacity to conduct studies. They even asked us questions that might seem offensive: ‘Do they know what good clinical practices are in Mexico? Do they work with ethics committees?’” recalls Herrera, who adds, “You can understand their attitude because in the recent past it didn’t exist, but when we started to show them that we had clients like Sanofi and Bayer, who know our capability and recommend us, they changed their attitude and went from doubt to awe.” For CECYPE, having presence in Spain is part of its strategy to get into the European market. “We are still seeking out new markets and we have allies in Spain with knowledge of the French and Swiss markets. We are also definitely interested in the United States, Canada and Germany, above all with the new biotechnology services and functional foods,” said Herrera. Tijuana is another key site for developing medical tourism. Thanks to its geographical location, thousands of patients from California and the West Coast often visit the city. Since 2010, Minerva Avelar, representative of the FUMEC Health Technologies Coordination in Tijuana, has worked with a group of local hospitals to help them obtain certification as a Medical Care Facility authorized by the Mexican General Health Council. This certification shows that the hospital is internationally competitive, allowing it to receive patients from the United States. One of FUMEC’s allies in the city is the Medical, Dental and Hospital Cluster of Baja California, whose President, Karim Chalita, comments that three years ago this cluster and FUMEC began a process for hospitals to become certified.Together with the Foundation, a situational diagnosis was made for16 hospitals, which Chalita describes as “a watershed, because we were lost.We knew we needed the certification, but we didn’t know what shape our hospitals were in. Then on a second occasion we received help to review the hospital infrastructure and that has been a great support and an enormous help.” For Chalita, the cluster’s collaboration with FUMEC has triggered new projects in benefit of the hospitals. “Today there are already eight hospitals in the region that have fully entered the certification program. They found a federal resource where the government provides 66% and the remaining 33% comes from the company, but it was FUMEC who laid the foundations and sparked it all off.” Health Information Technologies Information Technologies (IT) are powerful tools for managing information related to medical treatments, and nowadays can be used to exchange information not only between doctors and hospitals, but also between doctors and patients and even between national and international health institutions. IT are seen as tools which enable better quality, security and efficiency in the handling of health information, obtaining benefits such as: improved care quality, reduced costs, improved administrative efficiency and even an increase in accessible health services.6 The world healthcare IT market is expected to grow from $99.6 billion dollars in 2010 to $162.2 billion in 2015, at a Compounded Annual Growth rate (CAGR) of 10.2% from 2010 to 2015.7 Some of the areas with most growth potential are: electronic clinical records, mobile applications and telemedicine. FUMEC, through its Health Technologies Coordination (hereinafter TecSalud), has engaged in a series of activities to promote the use of IT in medicine, from training in the use of electronic clinical records to boosting the development of mobile applications designed to resolve health issues. An example of this was seen in Nuevo León, where the Health Cluster has worked in collaboration with FUMEC and CANIETI on an electronic clinical record project to be used in state hospitals to provide communication and accurate information to other hospitals when a patient needs to be transferred. TecSalud has given workshops on electronic clinical records in states including Baja California, Jalisco and State of Mexico, given that this tool is already part of international quality standards that must be met. As far as boosting mobile applications for health, since 2011 TecSalud and FUMEC’s Digital Media Coordination have worked with Health Services of Oaxaca to promote a call for tenders to push the use of mobile technologies for following-up on patients in remote areas. As a result, Neoteck, a company from Aguascalientes and with the help of TecSalud, developed a pilot program of mobile monitors which allow patient follow-up for maternal mortality, arterial hypertension and vaccination, among other issues. Chaudhry, B. Wang, J., & Wu, S. et al., (2006). “Systematic review: Impact of health information technology on quality, efficiency, and costs of medical care”, in Annals of Internal Medicine, 144(10), 742–752. 6 Markets and Markets (2011). World Healthcare IT. Retrieved from http:// www.marketsandmarkets.com/Market-Reports/healthcare-information-technology-market-136.html in February 2013. 7 23 Supporting the growth of Mexican IT companies Information Technologies (IT) have brought about radical changes to everyday life, to such a extent that most of us would struggle to imagine what work was like before computers and before data processing became as natural as breathing. The pervasiveness of IT makes it an ever-growing industry all over the world. According to IT consulting firm, Gartner, global spending on IT for 2010 was $3.4 trillion dollars and for 2020 will reach $3.67 trillion dollars.8 In Mexico, IT is a highly dynamic sector which is growing by leaps and bounds. The AMITI organization says the Mexican IT services market has doubled in the last six years and another firm, Select, estimates an annual growth rate of 10% between 2011 and 2015.9 As part of its work to promote the growth of small and medium-sized enterprises, TechPYME has identified three niches within IT that offer unique development opportunities for SMEs: mobile technologies, cloud computing and multimedia.This section summarizes the Foundation’s work in these niches and how we help the companies that work in them. QFinance (s/f). Information Technology Industry. Retrieved from http://www. qfinance.com/sector-profiles/information-technology, in February 2013. 8 Rodriguez Abitia, Guillermo (2011). “Mexico: IT Just Makes Sense”, in Negocios ProMéxico. April. 9 24 Mobile Technologies The use of mobile technologies is growing at an exponential rate throughout the world. A report from GMSA and A.T. Kearney states that half the world’s population (a little over 7 billion people) use mobile communications and in the last four years one billion have subscribed to mobile services, bringing the total to 3.2 billion worldwide.10 This growth and constant innovations in the field have led representatives of leading mobile operators to believe that significant growth will continue in this market in the coming years. Some 700 million new subscribers are expected by 2017, surpassing the 4 billion mark by 2018.3 In Mexico, the number of mobile connections is estimated to reach 98 million, converting the country into the second largest market in Latin America, after Brazil.11 FUMEC, through its Multimedia Coordination, promotes the growth of companies seeking to develop mobile device applications using a strategy which gives them direct attention and connects them with industry giants in Mexico like Nokia, RIM and Qualcom. This relationship has allowed companies like RIM, the maker of Blackberry, and Nokia to discover the potential of Mexican SMEs and leverage their capacities. “FUMEC is a unique point of contact that contributes to building this community of developers and facilitates our efforts as an 10 GMSA y A.T. Kearney (2013). The Mobile Economy. (s/l). Retrieved from http://www.gsmamobileeconomy.com/, in February 2013. 11 eMarketer (2013). Challenges and Opportunities in Mexico, a Concentrated Mobile Market. Retrieved from http://www.emarketer.com/Article/Challenges-Opportunities-Mexico-Concentrated-Mobile-Market/1009075, in February 2013. industry to bring our technology into the marketplace,” comments Carlos Silva, Senior Alliance Solutions Manager for RIM, Mexico. For Rafael Olvera, Developer Marketing Manager for Nokia in Mexico, FUMEC has been a good ally to the company because “they filter and channel companies that are really useful to us and let us focus on what we want to achieve. The clearest example is the company Ironbit. When we started to work with them they already had developments for Nokia platforms, but through FUMEC we sat down to build a partnership and have done many things, like applications for brands that benefit our targets and generate business for them.” And indeed, Ironbit is a mobile company that has leveraged FUMEC’s support and grown considerably in the last few years, so much so that we included it as a success story in our 2010-2011 report. Similarly, CloudSourceIT has capitalized on the assessment and resources FUMEC has provided and is another of the success stories presented in this year’s report. Another initiative from FUMEC’s Multimedia Coordination has been to invite companies to events such as the Mobile World Congress held in Barcelona, taking 12 firms in 2011 and a few more in 2012, and preparing a special liaison agenda with the developer community in Spain.“We held business meetings with firms; we were with Telefónica, Nokia and BlackBerry in Spain, who are the key players in the ecosystem there, and we also met with a group of Austrian and French companies who do innovation,” says Mariano Contreras, leader of TechPYME’s attention program for mobile companies. FUMEC’s knowledge of firms in the sector has created an unexpected demand; some companies from Spain, Canada and Central America have sought assessment from TechPYME to analyze their opportunities to penetrate the Mexican market.Two firms from Spain are now operating in Mexico, one of which has partnered with a company being helped by FUMEC to enter this market. CloudSourceIT: a 100% mobile world If anything distinguishes CloudSourceIT from the hundreds of other Mexican software firms fighting for survival, it is that two years ago its founders decided to focus on one niche of opportunity, specialized in it, and are today growing at a phenomenal rate thanks to that decision. “We are a niche company,” says Director, Gustavo García. “We live and eat mobile.” And indeed, the company offer clients a wide range of applications for mobile devices including: mobile banking, comprehensive corporate travel tracking, medical applications that benefit patients and doctors alike, and highly sophisticated marketing solutions. Shortly after the CloudSourceIT founders made the decision to focus on mobile applications, they got in touch with the TechPYME program which supports businesses in this niche. The meeting FUMEC taught us that we are on a par with international companies and we have lost our fear of doing big things. could not have gone better and FUMEC invited the company directors to the Mobile World Congress in Barcelona. It was there they began to realize the opportunities that might open for them in Mexico. “In Spain we met with La Caixa bank and saw there was a niche that wasn’t being exploited in Mexico because banking applications were not 100% native. When we got back we were the first to offer them,” said García proudly. Today, the firm works with two major Mexican 25 banks to develop their entire mobile banking, which will make any transaction possible in fewer than four clicks. “What we learned in Barcelona is that there are features of online banking that should not go into mobile banking. For example, mobile cannot capture 1500 transactions because users should perform all their movements in between 5 and 15 minutes.” One of the enormous advantages of CloudSourceIT is that all its projects are conceived and developed on native mobile platforms, which results in highly efficient applications that give end-users a unique experience, unlike those which simply adapt web-based solutions to make them mobile accessible. Another example of how the firm is innovating is through the use of a sound called “GhostWave” which is only detectable by mobile devices and which, when activated, will allow applications to deploy that will offer users all kinds of information from shopping tips to the latest news. Cloud Computing In 2011, the cloud computing services market was worth $79.6 billion dollars and was forecast to grow at an compound annual growth rate of 23.21%, to reach a value of $148.9 billion dollars in 2014.12 A United States study calculated that cloud computing would increase the use of servers by between 12% and 60%, generating scale economies that would lead to significant economic, social and environmental benefits.13 For Mexico, it is estimated that these savings could be equivalent to 0.31% of the national GDP, of which 0.23% corresponds to private and 0.08% to public sector savings. (This last figure would be similar to the saving of 0.05% of the GDP estimated by the Federal Cloud Computing Strategy for the public sector in the United States.)13 FUMEC works in alliance with Microsoft to promote the migration of Mexican IT SMEs toward cloud computing schemes, since by offering cloud services they can become more competitive against the big companies without investing too much in infrastructure. Transparency Marketer Research (s/f). Cloud Computing Services Market Global Industry Size, Market Share, Trends, Analysis And Forecasts, 2012-2018. Retrieved from http://www.transparencymarketresearch.com/cloud-computing-services-market.html in February 2013. 12 26 The CloudSourceIT staff. Photo courtesy of the company. Specialization has allowed CloudSourceIT to embark on ever-bigger projects and increase sales up to 700% in the last year. “Before we were a very small company with a national vision, but the experience we had with FUMEC taught us that we are on a par with international companies and we have lost our fear of doing big things,” García concludes. For Ricardo Medina, Liaison Manager for Microsoft Mexico, cloud computing “represents an advantage for companies, because they are going to be able to get down to what really interests them, which is seeking clients and having better products, and they won’t have to worry about the server going down, getting the latest software versions, etc.” The efforts of FUMEC and Microsoft in cloud computing complement each other well; both organizations push the growth and internationalization of Mexican businesses. Microsoft identifies both young entrepreneurs and businesses with certain experience seeking to make developments in the cloud, and collaborates with FUMEC so companies that so require receive reinforcement services, reach a certain maturity and are able to offer competitive services within the country, and even prepare them for the international market. FUMEC works in alliance with Microsoft to promote the migration of Mexican IT SMEs toward cloud computing schemes. 13 Instituto Mexicano para la Competitividad y Microsoft (s/f). “Cómputo en la nube”: nuevo detonador para la competitividad en México. Retrieved from http://imco.org.mx/images/pdf/Computo_en_la_Nube-detonador_de_competitividad_doc.pdf in February 2013. National resources together with the international support networks created by FUMEC make a decisive contribution to this collaboration. In Medina’s words, “the support of the ecosystems, partners and technical consultancy services that Microsoft can give and the business and market consulting from FUMEC, is an extraordinarily good combination for anyone seeking to go beyond domestic markets.” Among the cloud computing companies receiving support form FUMEC are: • Netmark. This firm has specialized in the design, development, deployment and adaptation of web-based products and services, and offers advanced cloud computing solutions to help reduce IT costs.The firm operates in four countries including the United States, and thanks to its services has been able to generate value for around 500 businesses and organizations. • Scio. Scio is an expert in Microsoft technologies for solutions as diverse as email archives to algorithm systems for betting on horse races. Its team of 13 in 2006 had grown to 50 people by 2011. Sales in that period increased by more than 400% and it has already taken the leap to becoming a global company. 14 PricewaterhouseCoopers (2011). Global entertainment and media outlook 2011-2015. Events and trends Vol. 250. (s/l). 15 FUMEC (2010). Sector de medios interactivos. Programa de Innovación Orientada. Mexico. 16 Mojica Navarro, Alfonso (2012). “Mexico: A Key Player in the Videogame Industry”, in Negocios ProMéxico. March. Multimedia Multimedia is the name given to those cultural products that result from the combination of contents such as text, images, sound, animation and video. Multimedia technologies, their applications and products form part of what John Howkins in 2011 called “creative economies,” referring to the economic activities where ideas are both the raw material and the main product. Multimedia industries are in full expansion around the world. For 2015, world spending in entertainment and media industries is forecast to reach 1.9 trillion dollars, a 5.7% increase on the 1.4 trillion dollars spent in 2010.14 Latin America is the region with most growth in these industries with 10.5%, an increase from 66 billion dollars in 2010 to 109 billion dollars in 2015.7 The total value of the media industry in Mexico climbs to almost 54 billion pesos and records growth of 8%.15 In addition, according to ProMéxico the country is the biggest video game market in Latin America and is fast becoming one of the countries with most potential for industry development.16 As in other market niches, FUMEC promotes the growth of Mexican multimedia SMEs by offering services to improve their value offer and increase domestic sales, and even to conquer international markets if they are prepared to do so. FUMEC’s Multimedia Coordination works with businesses locally and, together with the TechBA sites, identifies those with the potential to enter international markets. Among the companies that FUMEC has helped is Nuflick, which offers an online transmission platform through the Internet for Mexican and Ibero-American independent films and documentaries that are not widely distributed by the major cinema chains in Mexico. Likewise, the work of FUMEC has boosted companies like Kaxan Games, which went through an acceleration process in TechBA Seattle that helped it make contact with Chillingo, a leader in the publication of video games for the iPhone. This liaison was evident in August 2011 when “Taco Master,” a video game created by Kaxan, became the most sold on iTunes Mexico for iPhone and iPad, surpassing international brands like “Plants vs Zombies” and “Angry Birds”. In 2012, Alucina Studio, a company also helped by TechBA Seattle, won a contract to develop a game for the NFL in the United States, and at the end of that same year signed a contract with toy giant Mattel to include a videogame in its special edition of the American Girl doll. 27 Another site that has helped the development of multimedia companies is TechBA Vancouver. Among their consultants are experts like Paul Gertz, who was vice-president of animation house Hanna-Barbera and has a long trajectory as the executive producer of television series and movies. TechBA Vancouver has provided advisory services to firms like Matzin Game Studios, JB Entertainment, Cluster Studios and Imagination Films, creator of the first 3D stroboscopic feature film made entirely in Mexico.The achievements of Imagination Films are presented in this report. Imagination Films: 3D dreams that become a reality They say that “when dreams go on too long, there’s a danger they’ll become nightmares,” and that might have happened to Ricardo Gómez, Director and founder of Imagination Films, who in 2008 embarked on one of the biggest projects of his career: to make the first 3D, computer generated imagery and stroboscopic film manufactured entirely in Mexico. After almost two challenging years of struggling to dominate the technology required to make the film, Gómez decided to go to TechBA Vancouver, where he presented the progress of Z-baw, his ambitious full-length film, to Paul Gertz, an American consultant with vast experience as an executive producer of film and television. Gertz made some very good comments about the project and gave Gómez just one recommendation: concentrate on finishing the film. “It was advice that I had tattooed in my head: FINISH, because if not I would have nothing, despite the enormous efforts and investment I had made,” recalls Gómez. Finally, in March 2012, the new production was released. It had little commercial success but marked a milestone in the history of Mexican animation. Imagination Films organized a screening for friends, partners and sponsors of Z-baw, which was attended by Federico Goroztieta, Director of TechBA Vancouver, along with Paul Gertz, and “there began a love story between TechBA and us, and fortunately we now have their backing and advice in almost everything we are doing,” says Gómez. Encouraged by the film’s excellent reception by the North American consultant, Gómez decided to invite him to take part in their next adventure: the feature film Upgrade. Gertz accepted the proposal and became the executive producer 28 Poster of the movie Z-baw. Image courtesy of the company. and script doctor of the film which is currently under pre-production. Finishing Z-baw, and a second film to be released at the end of 2013, left Imagination Films with invaluable knowledge and experience which the firm seeks to capitalize on with the opening of a new center fully dedicated to the development of 3D animation in the state of Querétaro. The center is the product of the collaboration that Gómez found between the Government of Querétaro, the Autonomous University of Querétaro and private investors. In its first five years, the center plans to generate 50 jobs and three productions per year (movies, TV series or videogames), whether of Mexican origin or by attracting investment from other countries like the United States. “I believe that in five years we can reach a quality similar to Pixar and Dreamworks,” says Gómez, explaining that his own experience has convinced him that Mexico has the talent required to successfully compete in international markets. Promoting the development of processed food SMEs In six years Mexico will be producing 75% of the food consumed by its inhabitants. The country is also the second largest food supplier in the United States and the third in continental America, all of which makes the food industry a promising sector.17 In 2011, production in this industry reached a value of $119.707 million dollars, an increase of 13.2% over 2010. The sector contributed 22.7% to the manufacturing GDP and 3.9% to the national GDP leading to an estimated annual growth rate of 6.3% between 2011 and 2020.17 These figures demonstrate that the food industry has business opportunities that SMEs can leverage, providing they modernize and follow innovation-based growth models. This is the only way they will be able to satisfy market demands and become competitive players inside the country and elsewhere. The growth of this industry, which today employs more than 800 thousand people, will depend on current consumer 17 ProMéxico (2011). “Industria de alimentos procesados”. Retrieved from http://mim.promexico.gob.mx/wb/mim/agroalimentaria_perfil_del_sector in February 2013. 18 FUMEC and COMECYT (2011). Estudio de tendencias y oportunidades para el sector de alimentos procesados del Estado de México. Mexico. demands, which mark four major trends identified by a study conducted by FUMEC with help from the State of Mexico Council for Science and Technology (COMECYT).18 1. Health and well-being. This is the biggest trend and covers three categories: a) functional foods, which are those to which a component is added or modified to raise its nutritional quality; b) organic foods, which are produced without chemical additives, and c) natural foods, which are made with as many natural ingredients as possible and contain no artificial flavors or colorants. 2. Convenience.Those foods which are easy to come by, quick to prepare and low-cost, and respond to the urban pace which leads people to spend less time eating. 3. Sophistication. Consumers are increasingly more demanding and seek new food experiences; therefore they are more open to trying new foods. The middle and upper classes are the ideal consumers for this kind of product. 4. Senses. The food industry tends to manipulate the senses through the use of colors, flavors, textures and aromas to generate sensations that are remembered by consumers. This is a growing tendency in the food market. As you can see, current consumer demands require growing innovation, as well as quality-enhancing processes and business owners who are interested in meeting market needs. In this context, the Foundation, through its TechPYME program, has created a strategy aimed at strengthening the business and innovation capacities of processed food SMEs. In recent years, this program has obtained state and 29 federal support to work with companies in this sector in the states of Jalisco, Sinaloa, State of Mexico and Nuevo León. The strategy with these SMEs begins with the identification of businesses with innovation potential and, from there, develop a work plan tailored to each business which includes specialized local attention and, where applicable, help getting into international markets through preacceleration and acceleration services provided by TechBA. Among the states where TechPYME has worked are Sinaloa and State of Mexico. Both had strong support from local authorities who were keen to promote the growth of food companies and relied on FUMEC to do so. and Liaison, said, “the Foundation has helped us for some years to attack different strategic sectors in State of Mexico, among them, food. Without their collaboration we would not be able to reach our businesses so directly because FUMEC has the approach and the tools to work with the companies.” State of Mexico has a long culinary tradition and has produced businesses with great growth potential both inside and outside the country. Below are some of the most promising SMEs that TechPYME has identified and supported: State of Mexico: traditional flavors for new markets State of Mexico has the largest number of food sector production units in the country,18 however, the majority manufacture products using traditional methods, making it essential to introduce mechanisms which broaden their horizon and share with them the market opportunities they might exploit. Since 2010, FUMEC has worked alongside COMECYT in the State of Mexico to boost the growth of food SMEs that use some component of innovation technology or that are willing to make changes in their processes with the help of technology; part of COMECYT’s mission is to promote innovation in small and medium-sized enterprises. Collaboration with this organization has provided help to The Foundation has helped us for some years to attack different strategic sectors in State of Mexico, among them, food. 48 businesses in the state between 2010 and 2012, through training and advisory services designed to strengthen their capacities as well as consulting services for innovation projects, help registering with CONACYT to access government funding, and liaison with research centers and universities which help them develop their innovation projects. Speaking of the collaboration with FUMEC, Elsa Blum, former director of COMECYT’s Technology Development 30 • Rancho San Andrés. Dedicated to the breeding and marketing of products derived from ostrich. In addition to the meat, the company sells the eggshells for use in handcrafts, and the skin, which is used to make bags and shoes. In 2011 it received government support to build a new plant that is about to open and will be TIF (Federal Inspection Type) certified to cover international demand. • Red Mariachi Food. This firm specializes in spicy gourmet sauces that are distributed in chain stores and restaurants. In 2012 it discovered it had huge growth possibilities in the United States where it has since doubled sales. • Comercializadora México Fresco. Produces, processes and sells cactus (“nopales” in Spanish) in brine and pickled nopales, and has begun to have presence in France, Mexico, Canada, Switzerland and the United States. The company is currently looking to bring clean technologies into the manufacturing process. Grupo Jaztea: natural fresh tea, from Sinaloa to the world The Fong-Payán family’s restaurant, which served jasmine tea to refresh its diners, was the beginning of a journey that would culminate in the creation of Grupo Jaztea, a Sinaloa business that produces the only iced tea in the world without preservatives or artificial flavors. After studying architecture and working at Arca Continental (a Coca-Cola bottling plant) Edna Fong, daughter of the founders of the restaurant and now company Director, convinced her mother to concentrate on producing tea and distributing it as a bottled refreshment. This simple idea would convert her into the first woman to be recognized by Expansion magazine as a High Growth Entrepreneur in 2012. Edna Fong in the cover of Expansión magazine “From the beginning I knew that Jaztea would not only position in Mexico but also abroad. That is the vision that led me to poke around in different places,” says Fong. One of the places she looked for opportunities was TechBA Vancouver, where she enrolled in 2010 with the intention of entering the North American market. Since then, Grupo Jaztea has received specialized consulting services to familiarize them with a new way of doing business and find the right partners to reach their goals. Thanks to that assessment, Jaztea is about to partner with a Portland company that will distribute its tea in the United States and Vancouver from 2012. “We are looking for a new name for the Manufacturing of tea at the Jaztea plant. Photo courtesy of the company. product because we did a market study and saw that it should be a multicultural name for all our target groups,” Fong explains. Although they are close to internationalization, the business owner believes that the support they received will still be useful. “Being in TechBA has left me with a lot of experience because they taught me how to negotiate with retail people and improve my elevator pitch and because of the feedback I got.” One feature of Grupo Jaztea is that it looks for ways to innovate in all its processes. For example, when the company saw there was no machine for squeezing lemons on the market, it developed its own, and it strives to constantly renew its product image: Jaztea original, Jamaite, Hawaiian Tea and Jaztea Kids. In 2011, Jaztea sold $147 million pesos and in 2012 will grow 12% reaching a production of 50,000 liters of tea. But expectations are still high; besides selling to North America, the company intends to market its products throughout Mexico. Fong is aware that she is up against a very competitive market dominated by giants such as Coca-Cola, Nestlé and PepsiCo, but she is not intimidated. “Here is where you can show that you can do things, and you shouldn’t be deterred by big competitors. You have to find the way to get ahead.” 31 Sinaloa: hotbed of global food companies Since early 2011, the Foundation has worked in Sinaloa alongside the Secretariat of Economic Development, through its Department of Foreign Trade, to strengthen a group of 52 companies whose primary goal is to penetrate international markets. The Department of Foreign Trade has several instruments to help companies enter international markets but strives to ensure that the SMEs who receive its help are mature enough and have the tools they need in terms of skills and certifications, to guarantee their successful incursion. FUMEC has helped it achieve that. The government of Sinaloa expressed interest in leveraging FUMEC’s experience with food SMEs because the Foundation’s programs have methodologies to strengthen and broaden the capacities of companies so that, after evaluating their strengths and overcoming their weaknesses, they are ready to make the leap into external markets. FUMEC has become a strategic ally to Sinaloa, above all because the state has a good number of businesses willing 32 FUMEC have methodologies to strengthen and broaden the capacities of companies. to internationalize their operations. Among the services that the Foundation has provided to businesses in the state are: • Advice on acquiring good manufacturing practices through the use of Standardized Operating Procedures (SOPs). • Help in obtaining HACCP certification for company managers.This system ensures food safety, facilitates inspection by health authorities and is essential for companies seeking to export. • Workshops on diverse topics, such as: strategic management, marketing, retail, supply chain, financial controls and smart capitalization, among others. • Specialized consulting services to improve what companies consider their priority areas, such as: costs, logistics, packaging, etc. The suppor t network that FUMEC has woven for companies in this state is shown in the next page. Among the most promising companies that TechPYME has identified and helped in Sinaloa are: • Vinata Santa Clara. A company that produces distilled agave, the same as tequila but without the designation of origin. It has won three international awards for quality and was honored in New York in 2011 for the best distilled spirit out of 22 contestants. The company is preparing to export. • Osako. Develops and produces honey and different versions of honey which vary in color, taste and smell depending on the vegetation. It also manufactures honey derivatives such as balsams, lollipops, candies and propolis syrup. • Grupo Jaztea and Avideg de México. The first manufactures iced tea and the second traditional dishes. The success stories of these two companies are described in this report. Support network for food companies in Sinaloa A. Support at the local level 1. Secretariat of Economic Development in Sinaloa 2. Monterrey Institute of Technology and Higher Education 3. PyMExporta Sinaloa 4. GS1 5. Mexican Institute of Professionals on Bottling and Packaging 6. Sinaloa Center of Sciences 7. Gestales Group 8. National Science Foundation B. Support at the national level 9. National Science Foundation 10. Monterrey Institute of Technology and Higher Education 11. Center of Research and Advanced Studies 12. Chapingo Autonomous University 13. Association for Standardization and Certification 14. National Polytechnic Institute 15. Salvador Zubirán Nutrition and Medical Sciences National Institute 16. National Autonomous University of Mexico 17. Center of Advanced Technology 18. Nuevo León Autonomous University 19. Metropolitan Autonomous University 20. Research Centre on Food and Development 21. University Program on Food**** C. Support at the international level 22. TechBA Austin 23. TechBA Vancouver 24. TechBA Madrid D. Support at the national and international levels 25. ProMéxico 26. National Council on Science and Technology 27. Secretariat of Economy Mexican food companies breaking into global markets The food sector has been fertile ground for the collaboration between our TechPYME and TechBA programs. This has meant that several food companies have received support from these two programs and pushed ahead in tandem in their local growth strategy, as they prepare to go out and conquer global markets. TechBA Vancouver has been the spearhead for a score of food companies that have begun to go to Canadian and United States markets with its support and advice. The previous FUMEC report presented the success stories of two companies who were helped by the TechPYME Food Coordination and TechBA Vancouver and who have grown considerably in 2012. These companies are Nekutli and Endotzi.The first produces organic and functional foods based on agave syrup which, besides being nutritional, improve body functions and benefit health. The second produces and packages mushrooms and fungi for the gourmet market. Like these two companies, Grupo Jaztea has also been assessed by TechPYME and TechBA Vancouver, and its achievements are described in this report. The services offered by TechBA Vancouver to food companies are shown in the following graphic. 33 TechBA acceleration process for food companies • Market Research • Distribution Channel Audit and Review • Cost model development • Legal compliance, regulatory evaluation and testing Market and Product Assessment • Company’s objectives (Short and Long Term)/ define metrics • SWOT Analysis (Strengths, Weaknesses/Limitations, Opportunities, and Threats) • Financial Analysis • Action Plan: Critical Path Strategic Plan Product Development and Compliance/ Marketing Plan Brand Launch Dedicated Business Manager • Business StrategyàMarketing Strategy • Branding: the 6 M’s • Packaging (Design and compliance) • Marketing Targets • Marketing and distribution network appointment • Organize/Manage fulfillment, warehousing and distribution logistics • Presentations to buyers across distribution channels and negotiations of terms • Key Account Management Avideg de México: the unmistakable flavor of Mexican food Making products which captivate the consumers’ palate is just the first step to conquering the food market. Javier Avilés, CEO of Avideg de México, knows that very well. The Sinaloa company produces and markets a line of delicious processed foods such as refried beans with corn, chilorio, red pepper, clams, sardines and snails. Judging by the figures, Avideg is well received. In 2012 the company grew 26% and is expected to do even better in 2013. Avideg knows it is on the right track not only because of the good numbers but also because its products are distributed in national chains including Wal-Mart, Comercial Mexicana, Soriana, Sam’s Club and Chedraui. Still, the company’s 49 employees are working day after day to grow even more. “We are building a future to 2017, which means selling 100 million pesos, and that’s what motivates us,” says Avilés. “We imagined an extraordinary future with what 34 A sample of the Avideg products. Photo courtesy of the company. we really wanted and we have been surprised at how we have been able to accomplish things.” A key piece to achieving this goal is to ensure that their products meet the highest quality standards, which they will achieve in part through Haz- We imagined an extraordinary future with what we really wanted and we have been surprised at how we have been able to accomplish things. ard Analysis and Critical Control Points (HACCP) certification, a system that guarantees food safety. In 2012, FUMEC’s TechPYME program started to assess and train Avideg personnel in food safety to speed up their HACCP certification. With FUMEC’s help, two members of the company obtained certification and with that they can adapt the new plant to be built on the outskirts of Culiacán so that it meets the required standards. Another crucial issue for the company is the packaging, which can go a long way to reaching sales goals. “Often consumer perception is wrong, but it turns out to be real because it determines the impulse to buy. For example, people think that a can lasts longer than a bag, but they both last just as long, or people believe that there are no preservatives in the bag, but there are none in the can, either,” explains Avilés. With the help of FUMEC, this company obtained assessment in packaging allowing it to adjust the sizes to lengthen the shelf-life of their products. Avideg also adopted the use of retort pouches for clams, being the first in Mexico to offer the product in this packaging. For the director of Avideg, the collaboration with FUMEC has been good, but feels it is just beginning: his sights are set on the international market. “FUMEC is going to be an essential ally for exporting. The real change will be when we can go abroad, that’s why I think the best is yet to come.” 35 Opening opportunities for advanced manufacturing firms At the level of the three countries participating in the Free Trade Agreement of North America, there is obviously great potential to complement production chains by involving advanced manufacturing firms, not only in terms of components that are integrated into finished products, but also the equipment and systems used in production lines, assembly and testing. These opportunities imply challenges to create shared visions, build partnerships to design and innovate collaboratively and promote synergies that enable the advantages of each of the three countries to be better exploited in order for production chains to be more competitive against other regions of the world. This involves opening new spaces for firms to develop proactive strategies which take full advantage of government support and facilitate the partnership-building process. FUMEC has recognized this great trinational challenge and has formed mechanisms that facilitate partnership building, such as the TechBA network which has seven sites in the United States and Canada; technology-business advisory services of the TechPYME program that operates in several manufacturing regions in Mexico, and alliances with organizations from the three countries. Mexico has geographical advantages, skilled human resources, competitive costs, infrastructure and experience, making it highly attractive for investment from the automotive and aerospace sectors, among others. In this context, the Foundation has readied itself to actively contribute to turning Mexico’s appeal into a trinational opportunity that also encourages integration in education, research and development, and supports innovation to contribute to the competitiveness of production chains in North America. 19 Manzanillo Xport (2012). “México avanza en exportación de manufacturas”. Retrieved from http://manzanillo.mexicoxport.com/noticias/5761/mexico-avanza-exportacion-manufacturas in February 2013. 36 Mexico is the ninth largest exporter of high-technology manufacturing in the world19 and the first in Latin America. Automotive exports are at the top of the table with 29.3% of manufacturing exports and 23.8% of total sales abroad.20 The automotive sector in Mexico has been growing fast. Between 1999 and 2011, car production reported a growth of 65%, going from 1.5 million units a year to more than 2.5 million. This increase has positioned the country in 8th place in car production globally and made it the 5th biggest car exporter.21 20 Mexican Business Web. “Manufacturas: 81.4% de exportaciones mexicanas”. Retrieved from http://www.mexicanbusinessweb.mx/analisis-economico-de-mexico/manufacturas-81-4-de-exportaciones-mexicanas/ in January 2013. 21 Rosas, María Cristina (2012). “Sucess in motion”, in Negocios ProMéxico. May. A successful investment attraction strategy has strengthened the industry by bringing in foreign investments to the tune of more than $10.78 billion dollars in the last four years.22 Today, 19 of the leading companies in the world have assembly plants in Mexico and 300 of the biggest suppliers operate here. Companies like General Motors, Ford, Chrysler and Volkswagen are leveraging Mexico’s advantages to improve productivity and face market challenges. In parallel, the aerospace sector has become increasingly important in Mexico. With annual growth of almost 20% in the last seven years, the country has emerged as an industry leader worldwide, capturing the most foreign direct investment with more than $4.2 billion dollars between 2008 and 2012.23 The stage is set in both the automotive and aerospace industries for growing small and medium-sized businesses. Mexican aerospace exports topped $4.33 billion dollars in 2011 and are expected to rise to $12.27 billion by 2021, showing an average annual growth rate of 14%.22 Low infrastructure costs, proximity to the United States and the availability of highly skilled technicians and engineers in mechanical engineering and electronics are just some of the factors that contribute to attracting investment. Today, Mexico has 249 aerospace companies, the majority of which are NADCAP registered and AS9100 certified and together employ 31,000 highly trained professionals.23 The stage is set in both the automotive and aerospace industries for growing small and medium-sized businesses seeking to form part of supply chains or interested in expanding into manufacturing areas, such as advanced electronics, plastics and embedded systems, to mention just a few. One of the main industrial challenges for Mexico is to increase the added value of its exports. Only 34% of manufacturing exports to the United States include value added in Mexico. It’s a difficult challenge requiring longterm vision and considerable investment so that Mexican companies can replace those from other countries, and one that can be achieved by partnering with United States and Canadian companies. 22 Estrada Cortés (2012). “Mexico at full trottle”, in Negocios ProMéxico. May. Through its business support programs,TechPYME and TechBA, the Foundation promotes the development of advanced manufacturing SMEs by offering a series of services aimed at enhancing their technology-business capacities, facilitating integration into automotive and aerospace chains, and becoming direct or indirect exporters.These programs provide specialized technical assessment, support to develop innovation projects, and access to collaboration networks to identify technology and business partners. FUMEC and automotive SMEs In Mexico, FUMEC works at regional level with automotive companies through TechPYME, a program which coordinates businesses with national networks and, through TechBA, enables them to accelerate internationally. FUMEC works with business groups like the Automotive Cluster of Nuevo León (CLAUT), the Mexican Association of the Automotive Industry (AMIA) and the National Autoparts Industry (INA); with assemblers and Tier 1 suppliers, and with national and state government bodies. The Foundation seeks to consolidate the position of SMEs already part of the industry production chains, and facilitate the incorporation of new companies. Our programs enable companies to connect with universities, research centers and international networks. The automotive industry has a pronounced global dynamic and for that reason the Foundation provides companies with the tools to keep them at the forefront 23 Sandoval, Manuel (2012). Mexico: The New Global Aerospace Hub, in Negocios ProMéxico. June. 37 of developments in the sector. An example of this is the “Proactive Business” workshops, given by experts from TechBA Michigan in collaboration with leading companies. This training exposes participants to real situations that occur inside the industry and with the expectations of tractor companies as far as quality and delivery times, and gives them a framework to understand the importance of certifications that will turn them into world class suppliers. In addition, the Secretariat of Foreign Affairs and CONACYT have entrusted FUMEC with the coordination of the National Contact Point Automotive Sector (PNCSA), an organization that links the Mexican diaspora abroad with industry groups, government and academia seeking to elevate automotive competitiveness in Mexico. In 2012, as part of the activities of the PNCSA, the Foundation promoted the Mexicanos Expresando sus Ideas (Mexicans Expressing their Ideas) Forum in Aguascalientes, bringing together key players and leaders of the automotive industry. One of the speakers at the forum was Pablo Mendoza Villafuerte, representative of the Mexican Talents Abroad Network, United Kingdom Chapter, who works as a development engineer at the Ford plant in Essex, England. Villafuerte has collaborated with FUMEC for more than three years sharing his experience with Mexican businesses, academics and students and has found the support he needs to accomplish that idea with the Foundation. In the words of this Mexican abroad, FUMEC has a strategic position because “it is in contact with everyone in the industry and research centers, and what we need FUMEC has a strategic position because “it is in contact with everyone in the industry as a network is to connect with those businesses and institutions. We see that connection as a value but we also value their experience; we have found that the people at FUMEC really know their business, whether it’s automotive or aerospace.” Internationally, SMEs looking to enter foreign markets can use the services of the TechBA network, in particular TechBA Michigan, which provides specialized consulting in automotive and advanced manufacturing in general. The advisors at TechBA Michigan are renowned professionals who have worked in the industry and together chalk up more than 200 years’ experience. In 2012, TechBA Michigan was recognized by the Secretariat of Economy with the SME Award as the best international accelerator for its work accelerating the development of Mexican automotive SMEs. Among the businesses who benefitted from acceleration in Michigan are Forza Global Solutions, which provides chassis protection services to more than 24 assembly plants in the United States, Mexico and Venezuela; Intran-Flotamex, which manufactures gas tank components, and Industrias Automotrices RC, an original equipment manufacturer that supplies international clients.This last is one of the success stories described in this report. Industrias Automotrices RC: innovative, but still traditional The majority of businesses that come into the TechBA program do so to try their luck in international markets, but that was not the case with Industrias Automotrices RC, a Mexican original autoparts and spare parts manufacturer which has been present in Latin America, the United States and Europe for years. But although the company already had clients in other countries, entering TechBA Michigan made them do an about-face in their handling of international business. “We had had clients outside of Mexico, but we had never treated or understood them as well as we do now,” said Sergio Alberto Cruz, the company’s CEO. 38 The director recalls how before going into TechBA they would go to clients “without having anyone to review the best approach to use; but that changed radically with TechBA. The consultants have a vast experience and now when we offer a product we have someone who has done successful business in the United States and transmits that experience to us. That has made a huge difference.” Founded in 1961, Industrias Automotrices RC is a family business with four industrial plants in Mexico City and 250 employees, that manufactures original vibration control equipment and spare parts which it distributes inside and outside Mexico. Another strategy for increasing sales abroad has been to go to events like the SAE World Congress, which they attended for the first time in 2012 with the support of TechBA and ProMéxico. “We discovered that these events are a showcase for us because really specialized people go there and it’s an excellent place for promoting competitive technology products,” Cruz pointed out. Industrias Automotrices RC manufactures both original equipment and spare parts. Photo courtesy of the company. In spite of more than 50 years in the marketplace, the owners dream of continued growth, and so, in 2009, decided to professionalize their international operations. They are achieving that with the help of TechBA and investing in a sales representative who works out of Michigan. The results of this new strategy are encouraging; the company has been able to renegotiate its products, increase sales margins by 5% and achieve a turnover of $1.7 million dollars to May 2012. They have managed to move up from being a Tier 3 to Tier 2 supplier, which also means new clients. We had never treated or understood our international clients as well as we do now. One of the greatest satisfactions for this company is that all these changes have been welcomed by their clients in the United States. In Cruz’s own words, “many have said they are very happy since we opened the office there. Now you can see a professionalism in our people and changes in the way we do business. The clients love it and have even entrusted us with new projects.” FUMEC and its support for aerospace SMEs FUMEC works at regional level with aerospace companies through the TechPYME program which coordinates them with national networks and, through TechBA, facilitates the international acceleration of these companies. The Foundation works in collaboration with business groups such as the Mexican Federation of the Aerospace Industry (FEMIA) and with assemblers like Bombardier, Tier 1 suppliers like Messier, and with the support of national and state government bodies. In the case of aerospace,TechPYME identifies the companies with high growth potential already in the sector, and businesses from other sectors who can successfully migrate to aerospace. TechPYME presents existing business opportunities to these companies and together with experts from TechBA, helps them visualize their own path within the sector, as well as providing ongoing training in key industry areas. Other services offered to businesses are connection with the sector’s national network, orientation to improve quality systems, support for managing work capital, acquisition of machinery with preferential benefits and obtaining resources for the development of innovation projects. On an international level, FUMEC serves aerospace companies through three sites located in Montreal, Seattle and Madrid. These offices provide high level consulting services to companies already in the sector and to those with the capacities to leverage growth in the industry. Between August and October 2012,TechBA Seattle and Madrid launched a new training initiative called “Aerocamp”, 39 a pre-acceleration program which was held in Nuevo León, Baja California and Chihuahua, states with important concentrations of aerospace companies. These meetings were supported by ProMéxico, the governments of Baja California and Chihuahua, and the Instituto Tecnológico de Monterrey. Thirty-four Mexican companies participated in the initiative: 14 from Chihuahua, 10 from Baja California, and another 10 from Nuevo León. They learned of the business opportunities in the sector and, after an evaluation of their strengths and weaknesses, a strategy was tailored for each company. The attending companies interacted with international specialists, learned how Original Equipment Manufacturer (OEMs) work throughout the supply chain, and how to apply these lessons to their own products and services. In addition, they received feedback from business advisors with vast experience in the sector and, after a detailed evaluation of their capacities, 15 of the companies went on to the acceleration phase. TechBA’s work model with the aerospace companies is shown below. Aerocamp 2012 was so successful that in early 2013 it was proposed to add TechBA Montreal, a site with an important network of industry allies who enrich the Seattle and Madrid support networks. The sum of the efforts of these three TechBA sites shows how companies in this program access the large international support networks, and can utilize the experience of consultants who have great knowledge of the industry. TechBA acceleration process for SMEs on aerospace Accelerated expansion Preparation • • • • • 40 Profiling Participation in Aerocamp Seminars on global opportuni ties and culture of the sector First dimensional diagnostic by international experts Regional collaboration and with Mexican clusters • • • Definition of the value proposition Financial planning Business model Fist version of the critical roadmap • • • • • • GAP analysis Process optimization Organizational structure Costs structure Monitoring of critical indicators (sales and profitability) Sales strategy and positioning Positioning • National and international events • Contact with OEMs, T1 T2 and comprehension of specific requirements Intercovamex: high vacuum equipment with very high added value French-born engineer Jean-Marc Zisa does not like to live in big cities, so when he decided to open his high vacuum equipment business in Mexico, he chose to do it in Cuernavaca, Morelos. Before starting his own business, Zisa worked for Riber France who offered him work in Texas, where he heard about the Free Trade Agreement between the United States and Mexico. He soon realized that there was no-one in Mexico selling the vacuum equipment he knew so well. “Mexico was virgin terrain in this technology. I tried to find people who knew about it and there were none so I decided to hire young people and train them. I found them to be positive and with a thirst to learn; they were flexible and dedicated,” he recalls. And so, in 1991, Intercovamex was born, a company that designs and manufactures high vacuum equipment for use in research laboratories and the automotive, electric, pharmaceutical, metalworking and aerospace industries. Since we have been with TechBA we have grown 60% a year. In the early days, the company only distributed products from other companies, but in 1994 it began to design and assemble vacuum systems for research and development. Soon, the growing demand for its equipment led the company to export to South America, but it was in 2009, with its entry into the TechBA program, that the internationalization project began to take shape. “Until we met with TechBA, the one with a strategy and a business plan was me, and I had everything in my head, a bit disorganized. I had the A vacuum machine developed by Intercovamex. Photo courtesy of the company. international vision, but I struggled to move from a business managed by me, as the founder, to a structured company,” commented Zisa. In that context, TechBA suggested that Intercovamex put together a business plan which resulted in a total restructuring. Before TechBA, the company had 15 employees, half of whom were engineers. Today the workforce has grown to 39, and 80% have university studies. The directors of Intercovamex are pleased with the changes made because they have led to unexpected growth in the company. According to Francisco Rodríguez, its General Manager, “Before the business plan we were growing at about 10% a year. Since we have been with TechBA we have grown 60% a year. It was a significant growth acceleration, but we have done it in three years with their help.” In spite of these important accomplishments, the future still holds much in store for Intercovamex; the acceleration has allowed it to open markets in France and Oceania, and begin to look like a truly global company, but it still expects to triple in size and export to anywhere in the world where its products are required. 41 Colombia looks to FUMEC programs to accelerate technology SMEs In October 2012, FUMEC took its experience working with IT and biotechnology SMEs to Manizales, Colombia to support Incubar and ParqueSoft in an important project for the area. The project is aimed to create their own entrepreneurship model and propel the region into a position as a knowledge society with a climate conducive to social and economic development through technology innovation. The project “High impact entrepreneurship as a strategy for the development of a knowledge economy in Manizales,” is part of a joint effort by the Manizales City Hall and the Luker Foundation, organizations with a shared goal of turning the city into a place for the incubation and The main objective of the alliance with the Colombian organizations is to develop and introduce an acceleration model in strategic niches and transfer work. creation of new businesses which do well in sectors with high development potential, such as biotechnology, mobile technologies, human resources, managerial information systems, IT solutions for the health sector, and others. FUMEC’s participation in the project is to share its own experience and knowledge of the tools and work models that have been successful for the businesses it supports within Mexico with TechPYME, and that it has helped to internationalize through its TechBA accelerators. The main objective of the alliance with the Colombian organizations is to develop and introduce an acceleration model in strategic niches and transfer work models and tools related to FUMEC’s national and international oper- 42 A seminar organized by FUMEC in Colombia. ating mechanisms, ranging from the Technology-Business Assistance System (SATE), the development of innovation and market networks, and the presentation of the TechBA operating model. During the project, the FUMEC team designed a pilot acceleration program in Manizales that included the identification of support ecosystems that are regionally and nationally available, and the contact network that could facilitate access to new markets or to specialized consulting services, using the networks that FUMEC has in Mexico and the eight TechBA sites. In addition, the FUMEC team interviewed 40 IT and biotechnology companies in order to diagnose opportunities and lead those with most potential into the acceleration program in the international ecosystems of Mexico and Silicon Valley. “The companies of Manizales who participated in this synergy between Incubar, ParqueSoft, TechBA and Tech- talent that will accelerate the market pace and get involved in the creation of new products such as software, in which constant updating is essential. The Manizales project also served as a bridge for establishing interaction with IT companies in the Parquesoft Cali network, which has around 90 businesses and already sees FUMEC as a potential partner for accelerating its IT companies. An entrepreneur making a roadmap in Colombia. PYME were very surprised with what they saw in Silicon Valley and what they achieved with FUMEC’s acceleration program. It was their first step toward internationalization,” says Lilia Arechavala, General Coordinator of TechPYME. The Manizales companies are expected to be able to create their own affiliates in Mexico and partner with Mexican businesses. This will help them to identify and access other markets and meet Mexican standards as the basis for international development, using the FUMEC networks both in Mexico and the TechBA sites in the United States and Canada. As the IT industry in Manizales gathers momentum, there will be increased participation and generation of The Manizales companies are expected to be able to create their own affiliates in Mexico and partner with Mexican businesses. FUMEC is working in Manizales on a primer acceleration program involving four biotechnology companies.The original plan, conceived by the Colombians, comprises a number of different programs and actions including an information program and the strengthening of the entrepreneurial capacities in universities; a laboratory for innovative entrepreneurship in biotechnology for the development of prototypes; the formation of a three-million-dollar venture capital fund and, finally, the construction of a proprietary business acceleration model for high impact companies in collaboration with FUMEC. 43 Advanced Market-Oriented Research Societies which have built networks and programs that encourage collaboration between academia and industry, have seen clear benefits in their productivity, their competitiveness and, lastly, the capacity of their researchers to generate ideas with direct applications in different industries: the backbone of what we know as innovation. I/UCRC: A role model for academiaindustry liaison in Mexico In 1982, this conviction led the National Science Foundation (NSF) of the United States to create the Industry/ University Cooperative Research Centers (I/UCRC), a model that incorporates research centers, universities and businesses, in order for them to establish partnerships which, in the long term, will translate into integration and specialist training projects which contribute to solving the challenges of diverse industries. I/UCRC receive “seed” resources and professional support for their organization and development from the NSF, but their work focuses on the technological and strategic goals of the companies who provide the bulk of their resources. Consortia generate research and development projects in precompetitive areas, orient specialist training programs and facilitate the hiring of professionals who are skilled in the right technologies according to their development strategies. For more than 30 years the I/UCRC program has built more than 155 consortia, of which more than 60 operate today. Each year, more than 900 researchers and close to 1800 graduate and undergraduate students conduct research defined by the Industrial Advisory Board of each consortium. FUMEC has encouraged Mexican institutions and businesses to participate in the consortia and promoted the 44 creation of models similar to the I/UCRC in Mexico. In May 2012, FUMEC organized a meeting in Washington with the Program Director of the NSF, Rathindra DasGupta; the Director of Business and Innovation of CONACYT, Leonardo Ríos; the CEO of the National Laboratory for Advanced Informatics (LANIA), Cristina Loyo; and the CEO of FUMEC, Guillermo Fernández. At the meeting, DasGupta presented the I/UCRC model, sparking the interest of CONACYT to introduce a similar model in Mexico in association with some United States I/UCRC. The NSF offered its help for CONACYT and FUMEC to attend the meetings and gain a thorough insight into the methodologies used by I/UCRC in order to better diagnose the potential to generate one or more similar academia-industry collaboration centers in Mexico FUMEC has encouraged Mexican institutions and businesses to participate in industry-university consortia. which would work as affiliates to I/UCRC, known as “International Sites.” According to Guillermo Fernández,“Mexico is in a sweet spot to begin working in consortia of this kind; they are hugely important to the university-industry relationship.” The generation of these sites would mean an important breakthrough, impacting the industry’s increased productivity, the creation of important research projects and the generation of more qualified human resources. The affiliates of I/UCRC that CONACYT hopes to start would be far-reaching and match Mexico’s primary objectives: the organization of collaborative groups of networking academics and company specialists, and their participation internationally to take on new challenges arising from companies’ technological strategies. FUMEC, with its extensive network to cover all aspects of the project, was approached to do the groundwork for the first pilot programs of the sites in Mexico. Establishing one or more affiliates of I/UCRC in Mexico would strengthen binational academia-industry relations, opening a wide range of opportunities for companies and researchers from both countries. Investigation to evaluate the viability of the first sites in Mexico In September 2012, the Foundation carried out a pilot project in IT and advanced manufacturing sectors to evaluate opportunities and possible partnerships for academic centers and businesses. IT was supported by LANIA, while the manufacturing sector had support from the Autonomous University of Baja California and the CETYS University, with backing from Honeywell Aerospace, to seek cooperation with the Center for Advanced Non-Ferrous Structural Alloys (CANFSA), one of the I/UCRC consortia for the development of projects related to aerospace and automotive manufacturing processes. During the process, a network of contacts was built which helped to identify the needs and opportunities for the country to approach a model like the I/UCRC, and incorporate researchers and businesses keen to provide resources to generate research and innovation. FUMEC knows and works with other sectors in Mexico which can benefit from alliances with I/UCRC, and will continue to explore opportunities in health, environment, pharmaceuticals and advanced manufacturing to analyze the viability of creating Mexican I/UCRC sites in those areas. The benefits of this academia-industry relationship model, should Mexico take advantage of it, range from boosting the organization of academic networks and industrial consortia, the lessons learned from a work scheme with industry, the participation of Mexican industry in the definition of global work agendas, to researcher and graduate/doctoral student exchanges between Mexico and the United States, to mention a few. This kind of alliance will open important opportunities for the development of new capacities and skills. “Thanks to the interest and support of CONACYT and the NSF, the Foundation encourages national researchers and businesses to participate in this kind of alliance for other sectors, which will open important opportunities for the development of new capacities and skills, helping companies to detect technology needs and have more opportunities in the future,” the CEO of FUMEC concluded. 45 Development of Human Resources in Science and Technology At FUMEC we know that economic development in North America depends to a large extent on our countries having a population that is ready to meet existing work demand in areas with most impact on productivity, which are almost always related to science, technology, engineering and mathematics (STEM). Today, innovation is the driver behind development, and relies increasingly on sophisticated knowledge. Competitiveness is related more than ever to the supply of products and services based on research advances.This creates jobs for those with the ability to understand the problems and opportunities associated with incorporating scientific and technological progress, to resolve problems and improve the competitive position of businesses. The work paradox of recent years is that many countries are struggling with high unemployment figures, while scientific professionals and technicians with specific skills are hard to come by and very costly. This unbalance speaks to the inflexibility of countries to make educational innovations and academia-industry partnerships that better prepare people to occupy highly qualified jobs. What competencies do we need to achieve this kind of education? For Anders Hedberg, a specialist in STEM teaching, the answer is, “a series of abilities that form part of the international STEM language, critical skills for the use of new technologies that will arise and on which we will depend and that will help to build and maintain higher quality communities and improve the quality of life of all citizens.” Among the Foundation’s objectives is to help children and young people to acquire these kinds of skills to better cover the work profiles that industry demands.To achieve this, we have supported programs like Engineering Basics in High School Education, which has begun to bear fruit in the College of Scientific and Technical Studies of the State of Querétaro. This program has ensured that the areas of science, technology, engineering and mathematics are viewed favorably by high school students and chosen as a career plan. Thanks to INNOVEC —an organization that emerged from FUMEC with the mission of promoting the research, 46 innovation and development of mechanisms to improve the teaching of science at elementary levels—, inquiry-based science teaching has been able to permeate basic education in Mexico. This organization has trained thousands of teachers in Mexico to exploit inquiry-based and science education systems (IBSE, or SEVIC in Spanish) which allow ongoing learning and exchange rigid teaching schemes for dynamic systems that motivate children to learn in much more effective and creative ways, utilizing their ingenuity and flexibility. We want future generations to acquire the skills which will allow them to build their own future and improve their life expectations through a logical, critical, innovative, proactive and entrepreneurial approach. Another challenge is to bridge the gap between public and private sector students by giving teachers more opportunities to train and put quality education models into practice. Without a doubt, this challenge involves all of society, from family to business owners and, of course, governments and academic institutions. CECyTEQ: shaping competitive talent for the knowledge economy In the next 20 years, 13 million more Mexicans will be looking for a position in the job market, according to The Hays Global Skills Index 2012. Today, only 55 of every 100 professionals work in their area of competence,24 which is a loss for the country when a professional does not have the opportunity to apply his or her knowledge in production sectors. The Engineering Basics in High School Education program, created in 2008 from the partnering of the College for Scientific and Technology Studies of the State of Querétaro (CECyTEQ in Spanish) with FUMEC, is beginning to change this situation by helping high school students to pursue careers in engineering and sciences. The program is based on projects similar to those developed in the real world, using the same techniques and equipment, and with concrete results. CECyTEQ student project showcase. Photo courtesy of CECyTEQ. Project Lead The Way (PLTW), a United States program that prepares and encourages high school student to embark on careers in engineering and sciences, has been the model for Engineering Basics, adapted to regional conditions, because Mexico needs to build talent capable of meeting the challenges imposed by global industry, in an era which is practically defined by technological competitiveness. In July 2012, the first generation of 104 students graduated from the Engineering Basics program, and both CECyTEQ and FUMEC celebrated that achievement in the company of the Querétaro State Governor, José Calzada; Education Secretary, Fernando de la Isla; the CEO of CECyTEQ, Carlos Luhrs and the CEO of FUMEC, Guillermo Fernández, at a graduation ceremony with the students. “Engineering Basics has been an extraordinary lesson for all of us. It is a great opportunity to increase the level of development of the state and the important economic, industrial and service activity it has,” comments Luhrs.Today, this program is preparing 603 students at four different locations and with engineering programs that represent huge areas of opportunity, including information technologies and renewable energies. “Engineering Basics is much more than a course,” says Luhrs, “it implies a philosophy, a rationale and an approach that engages learners so that they perform better, and show greater personal commitment and self-confidence.” The program promotes leadership, critical thinking and decision-making. The students of Engineering Basics are known for being innovative, enterprising, persevering and propositional, which not only benefits them academically, but also in their personal life. The program’s impact on the students’ daily life is evident when we talk to them; most describe their story in terms of “before and after” Engineering Basics. Such is the case of Francisco Hernández, who describes his experience in the program as “something different to 24 Burgos Flores, Benjamín y López Montes, Karla (2010). “La situación del mercado laboral de profesionistas”, en Revista de Educación Superior. Vol. XXXIX, Número 156, octubre-diciembre. 47 what I had seen, something new and dynamic. Engineering Basics takes you a step beyond and brings you, as a person, many positive things like maturity and tolerance. Now that I am at university I realize that I acquired an ideology that is conducive to understanding and study.” Something similar happened to Eduardo Carmona, who is today studying Industrial Maintenance Engineering, and remembers that being in the program “was a brilliant experience that meant acquiring extra knowledge and skills that the others didn’t have.” Engineering Basics students. Photo courtesy of CECyTEQ. The results obtained by Engineering Basics are reflected in hard facts. In the first generation, the program has improved the completion rate from 65% to 73%, and increased the number of students going on to university from 53% to 80%. Before the program, 36% of students leaving high school chose a scientific or engineering career, but today this number has doubled. In Luhrs’ experience as CEO of CECyTEQ, one of the most commonplace problems facing schools at this level is 48 With Engineering Basics the CEO of CECyTEQ sees the opportunity to show that there should be no difference in the level of education between public. how to generate commitments from students to maintain their success in school.This program, however, has proven that when students understand the subjects and are engaged at a deeper level, their performance improves, and as a result, so does their consistency, which undoubtedly influences their ability to set their own goals and meet them. For Diana Vargas, a current student in the program, this has meant the opportunity to ask crucial questions about her career path. “Engineering Basics helps you define yourself, it resolves knowledge that maybe you could not get at another time and you come out with a better expectation of things. It’s a great way to prove to yourself whether engineering is right for you, if you like to innovate every day, work hard, meet all your goals and succeed.” In this program, the CEO of CECyTEQ sees the opportunity to show that there should be no difference in the level of education between public and private schools. He sees Engineering Basics as a public model of education innovation that gives young people real opportunities for growth and professional development. Speaking of the expectations of expanding the program to other schools inside and outside of the state, Luhrs thinks that “the program should be a far-reaching national project. We are privileged to be the only institution with the program, but it is a shame we can’t share it with more young people and utilize it to the full. There is no doubt that programs like this are what we need to make the country and the state competitive.” Engineering Basics is an excellent example to reform education and elevate it to the demand of today’s knowledge society. “We are seeking to integrate education levels into a statewide science education program in order to become more competitive and generate better welfare conditions for the population, creating a scientific culture of increasingly greater scope,” says Luhrs. Veracruz: children and young people building quality scientific education The state of Veracruz was the first to open the doors of its schools to the new inquiry-based and science education (IBSE) systems promoted by INNOVEC at elementary level, and has been the first to apply the system in special and indigenous education. IBSE systems promote science education through a pedagogic model that motivates children’s innate curiosity to learn about the world around them, while teaching reasoning, collaboration and problem solving skills. A central goal of these systems is to innovate teaching practice through training and the use of methodologies through which children acquire learning skills from an early age, discovering and learning about science. Observation, questioning, experimentation, expression, investigation and interaction with living organisms or everyday objects are key to these systems. These systems are employed in Veracruz under the name Inquiry-Based and Science Education Application Program (PASEVIC ins Spanish), and today benefits around 20,000 children in elementary education. This is possible thanks to the work of FUMEC and INNOVEC, and the support Training of PASEVIC teachers. Photo courtesy of PASEVIC. received from the Secretariat of Public Education (SEP) and the State Undersecretary of Basic Education. Teacher Blanca Nava has been in education for 40 years and has coordinated the program in Veracruz with enthusiasm. She recalls how, in her school, “we fought for PASEVIC to be given at all levels of basic education, with the conviction that access to knowledge should be a right that all children can enjoy, including those with special needs or belonging to indigenous cultures.” Another quality that distinguishes and strengthens PASEVIC is the participation of a collegiate body of multidisciplinary advisors which includes educational representatives from preschool, state and federal elementary education, indigenous, special, general and technical education and even distance learning for rural junior high schools. For Nava this form of working is important because of the feedback it generates and because the planning and design of education programs should be a coordinated effort. “It is very enriching to see what teachers do in other levels, like special or indigenous education. Working in a collegiate group has taught us teamwork, to speak the same language, and we have made innovations and adaptations that strengthen the program. We thought special needs children could work with the scientific method and we have seen excellent results.” As a result, almost all the state’s special education centers are working with IBSE. Another feature of Veracruz is that the PASEVIC constantly generates projects and innovations as a result of the work of teachers, technicians, researchers, scientists and experts, which help to regionalize the issues dealt with in the program, using the same methodology. In addition, the 49 program provides teachers with the equipment and tools they need so that the children can experience a new way of learning science. Above all, it has trained them to further optimize teaching self-sufficiently and to pass knowledge on to their students day by day. For Ms. Nava, the greatest satisfaction of working in this program “is seeing the children empowered and demanding to be taught like that every day.That gives us a lump in the throat. Teachers tell us it’s the best course they’ve had in their entire career.” Not only does the program have teachers falling head over heels, it has also served to consolidate previous efforts to establish collaborations with programs and institutions concerning environmental education, water, biodiversity and others, with IBSE methodology. “We have managed to get institutions like the Fairchild Tropical Garden and the Institute of Ecology of the State of Veracruz to work with PASEVIC students during a field practice. Photo courtesy of PASEVIC. 50 Teachers tell us it’s the best course they’ve had in their entire career. us, which has given greater projection to the program,” comments Nava. The inquiry-based education promoted by INNOVEC has been growing even in schools with no funding at all; the PASEVIC team has transmitted the methodology to many teachers keen to build better foundations for their students. “We started with 15 preschools and now we have more than 100 which, although they are without funding, have received training, coaching and support from us.” Nava is confident that the good results in the classroom, the new projects incorporated into the PASEVIC, the testimonials of teaching staff, and the constant reports and innovations, will enable them to win more support to forge ahead and increase the number of schools benefitted. “I am very happy with the confidence and support we have had from teachers, collegiate members, authorities and the program for being able to embark on new projects, make our own operating rules and form a technical committee with the academic features that interest us.” According to the coordinator, this program has given her the opportunity to pursue a life plan alongside people committed to education, and the chance to create projects she is passionate about. For this teacher, “It is essential for teachers to review and evaluate their practices and, to do that, there are tools available, like the IBSE, which offer huge advantages with an innovative approach that can be adapted to any subject.” Motorola and Intel: companies committed to science education Big companies today play an important role in public policy issues and have the power to generate positive economic and social changes, especially through corporate social responsibility programs, where they can contribute to economic development and growth, problem resolution and improving living conditions. Such is the case of companies that support INNOVEC so that education in Mexico is transformed to respond to today’s needs, ensuring that children and young people receive an education that enables them to perform better professionally and at work. Here we present the perspectives of Motorola Solutions and Intel, with whom FUMEC has collaborated extensively. Motorola Solutions: A better society helped by education innovation Motorola Solutions is a company seeking to “create a better society in all those places where it does business,” says Luis Lara, Director of Motorola Solutions in Latin America. The Motorola Solutions Foundation makes international efforts to strengthen education in science, technology, engineering and mathematics to prepare children and young people with the skills required by the industry of the future. Four years ago FUMEC contacted the company and presented its education programs. And so began a partnership to start a pilot program to apply Inquiry-Based Science Education (IBSE) systems in Chiapas, and hold a diploma course in Inquiry-Based Education in Nuevo León. The approval and success achieved by the teachers and students in these two states motivated Motorola to press on, and to propose the IBSE program to the Motorola Solutions Foundation in the United States, who approved the resources to fund a program in Michoacán with support from the State Science and Technology Council in 2012. “In innovative science and technology education we see one of the most important opportunities to collaborate with INNOVEC; their focus on inquiry-based science teaching matches our interest in supporting quality education. Furthermore, our market is closely related to that area, they are topics that we deal with and are looking to innovate and grow day by day, making our users more efficient,” explains Lara. First day of school opening ceremony in Michoacán. Photo courtesy of INNOVEC. The shaping of better-skilled human resources is also beneficial to companies who are seeking ever more competitive profiles to incorporate into the work.“We support programs with multiplying effects such as IBSE because, as we have seen in Michoacán, training 70 teachers benefits 1,482 students,” says Lara. “This program is very important because it is changing how things are done and has the 51 ability to change traditional teaching methods little by little, and generate a group of people who are well-prepared in more complex subjects.” According to the Motorola representative, it is important in Mexico to have projects of this kind evaluated by experts in the field and people who are committed to the last level. “That gives FUMEC and INNOVEC the confidence of authorities and companies and we feel satisfied that we are putting in our grain of sand to make the world a better place to live in,” he goes on. The shaping of betterskilled human resources is beneficial to companies who are seeking ever more competitive profiles to incorporate into the work. The next step is to add further efforts to this kind of program, “we like to be leaders, but when it comes to social commitment we would like to be part of a major project shared by more corporations and organizations. We are looking to break paradigms; our day to day job as a technology company is to reinvent ourselves, and we bring this same thinking into education with partnerships like this,” concludes Lara. Intel: Investing in education, the best way to boost development Intel has a long history of interaction with FUMEC and, in 2007, was invited to participate in one of the meetings of the INNOVEC Board of Directors to share how company was approaching professional development when training teachers in information technologies. Intel has made global efforts in elementary public education so that teachers learn to make use of technology to stay up-to-date and be more effective. “For Intel, there is no better support than that which can be given to education. It is an environment which has 52 6th International Conference organized by INNOVEC with support from Intel. Photo courtesy of INNOVEC. the greatest impact on the development of society and grants more opportunities to those who have access to it,” comments Fernando Martínez Peña, of the Corporate Affairs Group, Intel México. The affinity shared by Intel and INNOVEC regarding pedagogical and technological strategies to encourage the development of 21st century skills —critical thinking, effective communication, collaboration and research— led to Intel’s interest in collaborating with INNOVEC, supporting their international conferences. “Conferences bring together experts in science, technology and education who facilitate knowledge and strategies to orient the country towards development. We decided to support these conferences because the outreach effort made by INNOVEC is laudable and important,” Martínez points out. For Intel, participating with INNOVEC implies forming part of an educational effort that directly impacts the lives of teachers and their students. “There are few efforts like this one in Mexico,” says Martínez, “INNOVEC takes responsibility for monitoring its programs, going into every corner looking for spaces, to every school and every teacher to get the feedback that every quality program requires to continue to refine itself.” These two companies are a good example of how private initiative can participate in projects that benefit the community by strengthening its very foundations, which is what happens with investment in education. Health and Environment The design of the AlertaMEX system, which enables the notification of contagious diseases and will help the Ministry of Health to speed the detection and prevention process, concluded successfully in 2012 as part of the Early Warning Infectious Disease Surveillance (EWIDS) program. FUMEC supports U.S.-Mexico collaboration in health EWIDS, just like other programs such as Border Infectious Disease Surveillance (BIDS) and the project to strengthen the Influenza Epidemiological Surveillance Network, are initiatives with a common goal: to preserve health in Mexico and the United States. The interest of both countries in preventing the spread of infectious diseases among their inhabitants dates back a long way, but gained new momentum in 2001, when the United States Postal Service was hit by a bioterrorist attack that infected 22 people. That led to the beginnings of the United States-Mexico Border Health Commission, working on programs for the prevention of such diseases, and FUMEC created its Border Health Collaboration Project, which paved the way for the Binational Health Collaboration Support Program, coordinated by Fernanda Guerrero, and which represents an opportunity for both countries to complement their surveillance capacities. FUMEC’s role in this has expanded to being a facilitator which channels United States government resources to reach Mexican institutions like the General Directorate of Epidemiology (DGE) and the National Institute of Epidemiological Diagnosis and Referral (InDRE), which develop the EWIDS and BIDS programs and the Influenza Epidemiological Surveillance Network. In its role as fiduciary agent, the Foundation has sought to improve its capacity to manage funds, and so in 2012 participated in a number of administration courses, including “Grant Administration for Grantees,” and an online seminar aimed at preparing and submitting budget requests; both organized by the Centers for Disease Control (CDC) in Atlanta. Training to improve epidemiological surveillance capabilities in Mexico The effectiveness of epidemiological surveillance depends on the capacity and preparation of the country in public health issues. For that reason, FUMEC also supports Mexican health institutions to stay abreast of related developments and in constant training. In 2012, seven InDRE professionals attended training in San Diego, which centered on enhancing laboratory logistics techniques and development, and addressed issues such as: biosecurity, blood borne pathogens, chemical hygiene plan and training in sample packaging procedures. Also, in November of that year, one InDRE specialist attended a symposium in Atlanta about rabies that spoke of the importance of increasing surveillance of the disease in domestic and wild species. 53 Another important workshop was given by Technology Associates International Corporation (TAIC), which trained 22 people from the DGE and two doctors from each border state (Baja California, Chihuahua, Sonora, Coahuila, Tamaulipas and Nuevo León), to use the AlertaMEX system. “The participation in workshops and symposiums that FUMEC promotes and finances through resources obtained from the United States is extensive training. The intention is for those who attend the training courses to bring back valuable information and, in turn, be able to train personnel in Mexico,” explains Guerrero. Moving forward on several fronts in epidemiological surveillance The BIDS project, which is responsible for monitoring communicable diseases such as the Nile virus, influenza and dengue, is about to introduce the surveillance of brucellosis, a disease that is spread by eating meat from infected animals.This project took shape thanks to the DGE, in collaboration with the InDRE, developing a proposed protocol for sentinel surveillance of the disease, initially in Sonora and Michoacán. The project to strengthen the Influenza Epidemiological Surveillance Network was able to consolidate the initial 54 FUMEC supports Mexican health institutions to stay abreast of related developments and in constant training. part of the National Plan for Influenza Preparedness and Response in Humans and Animals, which aims to continue surveillance throughout the country to quickly identify possible influenza cases. But, in spite of the progress made, there is still much to do. Mexican biosecurity laboratories lack infrastructure; level 3 laboratories, which handle life-threatening pathogens, are few and far between. The absence of level 3 and 4 laboratories complicates the handling of pathogens like influenza for health institutions since they need certain levels of security to prevent contagion among their researchers. Nevertheless, the Mexican health system continues to work towards remedying this deficiency within four years. One important advance was made on June 2012 when the United States Department of Human Health Services named the InDRE as a member of the Network of National Response Laboratories in the United States.The network, which responds to emergencies that may arise in areas such as bioterrorism and emerging infectious diseases, is made up of United States organizations like the CDC, the FBI and the Association of Public Health Laboratories. Hence, the entry of the InDRE to the network is an achievement shared by all the actors who collaborate binationally in matters of epidemiological surveillance. The prevention, detection and halting of the spread of infectious diseases concerns all countries around the world, and requires great teamwork for their efforts to be effective. Epidemiological surveillance involves the work of many actors on both sides of the Mexico-United States border. Constant communication and teams of professionals who are dedicated to the common good are essential for preserving our biggest asset: health. Encouraging entrepreneurs in low-income communities In Mexico, micro-enterprises that produce and process food are highly active and are the livelihood of a great number of families in rural and urban communities. Supporting these businesses, which often emerge without any planning whatsoever, directly benefits the producers and increases competitiveness by collaborating in the generation of quality products that are made with safety measures and ensure the well-being of consumers. Since 2005, FUMEC’s Food Safety Program has worked with micro-enterprises and food producers to provide them with the assessment and tools they need for their businesses to reach the quality standards required to successfully market their products. In February 2012, FUMEC consolidated its Micro-Enterprise Assistance Program for the Food Sector to help independent producers and micro-enterprises improve their business capacities and seek sustainability and the development of innovative products, to meet national and international market needs. Today, around 20% of food sector SMEs use or are interested in using safety and quality systems for their products; however, a large number of producers and micro-businesses are unaware of the issue or do not know the procedures to apply them.“Quality and safety certifications allow them to access a whole new level of commerce and be able to compete on the global market,” says Cristina Acevedo, Coordinator of FUMEC’s Food Safety Program. The program is aimed primarily at people and groups in vulnerable situations, such as seniors, young entrepreneurs and low-income communities or producers with an interest Quality and safety certifications allow them to access a whole new level of commerce and be able to compete on the global market. Entrepreneurs in a labeling workshop. in improving their practices and processes, or who need to strengthen their business capacity to be more competitive and reach specific market niches. Entrepreneurs come in with a product or sometimes an idea, which they start to shape and perfect as the assessment goes on. “During the first phase we look at human 55 Entrepreneurs come in with a product or sometimes an idea, which they start to shape and perfect as the assessment goes on. development issues, we identify their personal abilities together and their family or community goals. We look at what they want to be, what makes them happy and what they like so that that becomes the goal, and then later, that goal becomes a business option,” explains Acevedo. The program consists of three phases and starts with pre-incubation which involves a general diagnosis, a life plan, an evaluation of ideas and a SWOT analysis. During the incubation phase, a business plan is drawn up and the incorporation of the company is analyzed. Then, in the third, post-incubation phase, they see safety and quality management systems, and are offered a workshop on good practices, business administration and competitiveness. The products generated by the businesses in the program are already being marketed or about to be, and have generated 96 direct jobs. Among the businesses that the Foundation has incubated are: CYCMEX, which makes liquid chocolate for 56 diabetics; Sinanché, which produces artisanal honey and employs low-income people in Yucatán; Chile de la Botella, which is about to pitch its product to Comercial Mexicana; Nutrisnack which makes amaranth to ISO-9000 standards, and Gran Kanak, which is the undertaking of two seniors who produce organic chocolate. Up to now, FUMEC has incubated 28 projects in Tlaxcala, Jalisco, Mexico City,Yucatán and Mexico State and it expects that these will help to improve the lives of the people who participate in the program, enabling the creation and consolidation of enterprises as a source of self-employment and senior employment. Entrepreneurs in a life skills workshop. Strengthening our collaboration with Canada During 2012, FUMEC kept in touch with several Canadian organizations with a view to further reinforcing collaboration with Canada. This cooperation is essential for moving forward on issues such as the competitiveness of trinational chains and the training of talent groups. » Support for a Canadian IRAP mission In February 2012, FUMEC supported the Industrial Research Assistance Program (IRAP), an initiative of the Canadian National Research Council, in a mission of five companies who visited Mexico to explore partnership, collaboration and market opportunities. • Presentation of opportunities. NRC consultants presented wireless health applications to six Mexican companies participating in the TechPYME program for mobile technologies. • Business encounters. Canadian and Mexican companies interested in developing their value offer in new markets explored collaboration options. • Liaison. The Canadian delegation was keen to strike up a relationship with the big Mexican telecommunications companies. FUMEC set up a meeting with TELMEX-IT which focuses on exploring and developing new business opportunities. » Mexico-Canada meeting to discuss innovation policies Sara Hadrecky, Canada’s Ambassador to Mexico, and Leoncio Salaburu, CEO of TechBA Montreal. The National Project Coordinator of the NRC, William Dobson, organized the visit for the companies who are interested in exploring opportunities in information technologies with applications for the health sector. This collaboration included the following activities: At FUMEC’s invitation, the President of the Science, Technology and Innovation Council of Canada, Howard Alper, visited Mexico in March 2012, and presented the document entitled The State of The Nation 2010. Imagination to Innovation during a meeting with representatives from the Mexican science, technology and innovation sectors. In attendance were representatives from the Secretariat of Economy (SE), the National Council of Science and Technology (CONACYT) and FUMEC, who discussed various aspects of the innovation strategies of Canada and Mexico. The meeting touched on the definition of indicators that support the implementation of public policies, and the need to promote the creation of managerial strategies among 57 Mexican businesses for their economic stability and growth. The Undersecretary of Industry and Commerce, Lorenza Martínez Trigueros, pointed out that the exchange of knowledge in technology development has strengthened the relationship between both nations and that meetings such as this are an opportunity to create knowledge and innovation networks. Alper recommended that Mexican authorities encourage companies to invest in science and technology to adopt innovation as a competitive strategy, and promote the practical application of scientific research and the training of highly qualified personnel. » Strengthening our relationship with British Columbia and Quebec FUMEC has two offices of the TechBA acceleration program for technology companies in Montreal and Vancouver, Canada. Through them, the Foundation has been able to strengthen its interaction with authorities and institutions from British Columbia and Quebec which have supported the operations of these accelerators and facilitated partnerships with key institutions within these business ecosystems. In Montreal, right from the beginning we have had great support from the Inno-centre incubator, the Industrial Re- 58 search Assistance Program (IRAP) and the National Research Council. In Vancouver, our allies have been Wavefront and Discovery Parks, as well as the Centre for Digital Media, the British Columbia Technology Industry Association, and the British Columbia Innovation Council. At federal level, we have received support from organizations like the Ministry of Economic Development, Innovation and Export, and the office of Foreign Affairs and International Trade Canada. » Interest in opening a TechBA in Toronto The representative of Ontario in Mexico, Chantal Ramsay, has approached FUMEC on various occasions with a view to establishing a TechBA (our technology business accelerator) office in Toronto. Similarly, representatives of MaRS, a Canadian organization that boosts economic development through innovation and by supporting technology companies, has contacted FUMEC to insist that the MaRS installations would be an excellent choice for opening a TechBA site in Toronto. Directory Program Coordinator Innovation Based Economic Development TechPYME General Coordinator Aerospace Automotive Clean Technologies Health Technologies Food Technologies Information Technologies Microsystems Mobile Technology-Business Assistance System (SATE) Industrial Property TechBA General Coordinator TechBA Arizona TechBA Austin TechBA Madrid TechBA Michigan TechBA Montreal TechBA Seattle TechBA Silicon Valley TechBA Vancouver Lilia Arechavala Luis Pineda Carlos Meneses César Rivera Carlos Martínez Ana Boeta Iván Zavala Guillermina Avendaño Mariano Contreras Jaime Loé Shanik Santos Haru Yamasaki Haru Yamasaki Luis Medina Eugenio Marín Raúl Carvajal Leoncio Salaburu Itzam de Gortari Adolfo Tavera Federico Goroztieta Advanced Market-Oriented Research Collaboration with CONACYT and NSF Marcela Ángeles Development of Human Resources in Science and Technology Engineering Basics in High School Education Innovation on Science Education (INNOVEC) Ignacio Castro Liaison with INNOVEC Guillermo Fernández Environment and Health Binational Health Collaboration Food Safety Fernanda Guerrero Cristina Acevedo FUMEC Office in Washington D.C. Washington D.C. Jessica Borth 59 Our Offices México, D.F. TechBA Michigan Washington D.C. TechBA Montreal TechBA Arizona TechBA Seattle San Francisco 1626, Despacho 205, Col. Del Valle, C.P. 03100, México, D.F. Tel. (+52 55) 5200 0560 The National Academies of Science 500 5th Street NW, Washington D.C. 20001, U.S.A. Tel. (+202) 334 25 22 4600 E Washington St, Suite 300 Phoenix, AZ 85034, U.S.A. Tel. (+602) 772 4980 TechBA Austin 3925 West Braker Lane Austin, Texas 78759, U.S.A. Tel. (+512) 305 0974 TechBA Madrid C/Santiago Grisolia 2, Oficina 163 PTM/Parque Científico de Madrid 28760 Tres Cantos Madrid, España Tel. (+34) 91 806 4442 60 26200 Lahser Rd. Suite 170 Southfield, Michigan, U.S.A. Tel. (+313) 483 0387 550, Sherbrooke St. West Suite 200 Montreal, Québec H3A 1B9, Canada Tel. (+514) 987 9550 Corporate Plaza 600 108th Ave NE, Suite 314 Bellevue, WA. 98004, U.S.A. Tel. (+425) 732 32 50 TechBA Silicon Valley 1737 N First Street Suite 230 San José, CA 95112, U.S.A. Tel. (+408) 806 0290 TechBA Vancouver Discovery Parks 150-887 Great Northern Way Vancouver, BC. Canada, V5T 4T5 Tel. (+604) 637 5200 Financial Information The George E. Brown United States-Mexico Foundation for Science Statement of Activities for the Year End as of December 31, 2012 (U.S. Dollars) Health and Environment Economic Development Based on Innovation 2012 1.074.635 10.080.631 Human Resources Development in Science and Technology 216.470 Offices Abroad 136.717 Subtotal Operating Expenses 11.508.453 889.122 TOTAL12.397.575 61 62