Pablo Soria de Lachica – Discusses Ways Mexico is Set-Up for Innovation

With the 13th largest economy in the world (11th in terms of purchasing power and 10th most populous), Mexico sits abreast of the largest and most competitive international economic markets of our times. In 2017, the Mexican economy defied lackluster predictions for financial health by posting above average GDP growth, demonstrating resilience in the face of unpopular and aggressive foreign policy tactics from the US Trump Administration to the North. While much of this success was linked to trade—Mexico holds 11 free trade agreements with 46 countries with a total value of imports/exports estimated around 73 percent of Gross Domestic Product, market analyst Pablo Soria de Lachica explains that structural reforms by the current administration have led to a freer private sector, open to dynamic business formations characterized by innovation and technology-driven enterprises.

The Mexican government has steadily increased expenditures on research and experimental development, from 0.4% of GDP to 1% by 2018. This includes considerable investment in agencies such as CONACYT (Consejo Nacional de Ciencia y Tecnología-National Council for Science and Technology) who receive upwards of $2.2 billion annually, despite cutbacks to other sectors. A large portion of CONACYT funding is directed towards sustainable/renewable energy, health and green development. Pablo Soria de Lachica notes that an important aspect of this strategy is the financing and expansion of human resource frameworks geared towards the development of innovative human capital, by increasing the number of trained researchers in both the public and private sectors. To stimulate the private sector, tax incentives and subsidies to the tune of $1.3 billion per annum have been applied to industries demonstrating innovative practices and methodologies.

Mexico has demonstrated leadership in agricultural innovation for the past half-century and continues to do so, responding to the challenges of climate change, growing global population pressures and shrinking agricultural land bases. The efforts of the Centro Internacional de Mejoramiento de Maiz y Trigo have directly impacted the development of Asian and African nations, through the genesis of high-yielding and stress-tolerant crops that have saved millions from hunger and poverty. With the continued support and interest of multinational investors and entrepreneurs such as Carlos Slim Helu, they are positioned to continue a tradition of innovation and forward-thinking business practices.

A key institution driving entrepreneurialism in Mexico is INADEM—the National Institute of Entrepreneurs, a publicly-funded institute designed to channel knowledge and capital into start-ups, incubators and skills-improvement initiatives. The financial mechanisms of INADEM have led to the flourishing of small businesses and firms—with a ten-fold increase in seed funds over a two year period.

Global finance and foreign exchange analyst Pablo Soria de Lachica offers his expertise and perspective to clients through direct training sessions, a series of published instructional texts and through his collaboration with Kartoshka—a company positioned at the forefront of technological innovation in sales, marketing and customer support. In addition to his business acumen, Soria de Lachica is a committed philanthropist, actively supporting charitable endeavours such as the Boy Scouts of America and the America-Israel Cultural Foundation.

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About the Author

Pablo Soria de Lachica
Pablo Soria de Lachica is an internationally acclaimed broker and Director of Business Development of Bforex, a renowned currency trading firm based in Panama City, with 18 offices spanning the globe, including locations in Brazil, Mexico, and Uruguay.