Technological capability accumulation in the 'maquila industry' in Mexico

Resumen

From the mid-1960s, 'maquila' plants were established in the Mexican Northern border. The Mexican model was based on foreign firms establishing their own assembly plants. Even though this model was less successful than that of East and South East Asian in terms of several techno-economic indicators, it has largely contributed to employment generation. However, as a result of internal learning process and changes in the global firms strategies, several 'maquilas' operating in Mexico have undergone important qualitative changes. During the 1990s there was a change in the nature of their productive and technological activities towards more complex products and more innovative technological activities. In contrast, other dimensions have evolved slowly, such as the engagement of Mexican suppliers in global supply chains. The aim of this paper is to discuss an analytical framework to help study the technological capability accumulation in the ‘maquila’ industry in Mexico. Based on that the paper seeks to examine levels of technological capability accumulation of three maquilas, and to bring to light some stylized facts of the accumulation process in this industry. The analytical framework proposed draws on the taxonomy of technological capabilities proposed by Bell & Pavitt (1995) for the manufacturing industry in developing countries and its further adaptations and applications carried in Figueiredo (2001) and Ariffin & Figueiredo (2003, 2004). This paper adapts it to the particularities of the ‘maquila’ industry in Mexico. The new taxonomy includes technical functions that are relevant to this industry and redefines activities that correspond to various levels of accumulation. This paper is based on a case study methodology. The cases are the business lines of three maquilas in Ciudad Juarez: Thomson Multimedia, Philips Corp. and Delphi Corp.