Emerging Tech

Learning And Innovation Under Changing Market Conditions: The Auto Parts Industry In Mexico

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Executive Summary

This paper explores changes over time in the learning responses and innovation capacity of auto parts suppliers in Mexico, in the context of the confluence of market changes brought about by the North American Free Trade Agreement (NAFTA) regulations - which included labor, production and organizational requirements and consequent changes in the type of capacities that assemblers demanded from the auto parts suppliers. The paper combines elements from three strands of theory: the systems of innovation perspective, analytical tools from the interactive learning and capability building literature and the role of trade in learning and innovation.

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