From Assembly Lines to Innovation Hubs: Mexico’s R&D Renaissance

Mexico needs a clear strategy to drive its shift from manufacturing to technological innovation. Experts argue that the country’s workforce is as skilled as, if not more than, its global counterparts, a fact proven by advancements in local R&D centers. To position Mexico as a major innovation hub, stronger collaboration between private industry, the government, and universities is essential.

“We need to strengthen ecosystems to nurture the symbiosis between companies and universities,” says Juan Casillas, Regent, UNAM. According to Casillas, private-sector engagement with the federal government is essential to positioning Mexico as an attractive destination for foreign investment. However, he notes that commitment to R&D is not uniform across all companies.

“Perhaps Mexican talent is not the most disciplined or rigid, but it is incredibly capable. All it needs is the opportunity,” explains Casillas, emphasizing that local engineers have resolved technical challenges that had remained unsolved abroad for years.

Tamara Nieto, Liaison Secretary, Universidad Aeronáutica de Querétaro (UNAQ), underscores the necessity of transitioning from manufacturing to leadership in R&D. “We have consolidated our position in manufacturing, but there is much work to do to become R&D leaders,” she explains. 

At UNAQ, partnerships with companies like GE Aerospace have been instrumental in developing laboratories for sustainable aviation fuel (SAF) research. “The industry-academia synergy is key to success. Without specialized talent, companies cannot thrive,” Nieto asserts. However, she warns that a major challenge is the lack of incentives and federal investment in technology-focused university projects.

Nearshoring and R&D: Independent but Complementary

“Nearshoring is not an excuse or a reason for developing R&D capabilities in Mexico. We need national strategies that allow us to compete globally,” says David Pineda, R&D Director, Continental Mexico. He also stressed that while nearshoring has sparked discussions about Mexico’s industrial future, it has not directly driven technological advancements.

As an example, Pineda points out that while Mexican engineers have played a significant role in developing cutting-edge automotive LiDAR systems, there is no cohesive national strategy to harness this potential. “If we do not have a plan to capitalize on our talent, we will lose it. It is a diamond in the rough that needs to be polished,” he warns.

Jorge Vázquez, R&D Head, ZF Group Mexico, argues that Mexico has yet to fully embrace R&D as a national priority. “Nearshoring and R&D do not automatically go hand in hand. Research and development require a rebellious spirit against the traditional nearshoring model. Mexico must become more competitive. The only way to transition from a manufacturing-based economy to a technology-driven one is through coordinated strategies,” he explains.

As the automotive industry undergoes rapid transformation, with vehicles becoming more like reprogrammable computers than traditional cars, Mexico’s engineers have already made significant contributions. “The talent is here, and global demand for skilled professionals presents a great opportunity. We can either watch it pass us by or take a leading role,” says Vázquez.