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PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Project Name Region Sector Project ID Borrower(s) Implementing Agency Environment Category Safeguard Classification Date PID Prepared Date of Appraisal Authorization Date of Board Approval Report No.: AB1306 Innovation for Competitiveness 1st phase APL LATIN AMERICA AND CARIBBEAN General industry and trade sector (50%);General education sector (30%);Central government administration (10%);General finance sector (10%) P089865 Secretaría de Hacienda y Crédito Público Palacio Nacional, Primer Patio Central, Piso 4 Colonia Centro, D.F., México, 06000 Tel: 52 55 9158 1100 Fax: 52 55 9158 1216 ricochoa.shcp.gob.mx, www.hacienda.gov.mx CONACYT -Consejo Nacional de Ciencia y Tecnología Av. Insurgentes Sur No. 1582, Col. Crédito Constructor, Del. Benito Juárez, Distrito Federal, México, 03940 Tel: 52-55-5322-7700 [email protected], www.conacyt.mx [ ] A [ ] B [X] C [ ] FI [ ] TBD [ ] S1 [ ] S2 [X] S3 [ ] SF [ ] TBD March 2, 2005 February 18, 2005 May 19, 2005 1. Country and Sector Background The competitiveness of the Mexican economy is declining. The decline in Mexico’s competitiveness takes place against a backdrop of strong benefits of integration into the North American Free Trade Agreement (NAFTA) in the last half of the 1990s. Growth in Mexico was driven by labor force growth and capital accumulation, with minimal contribution from total factor productivity growth (0.12% in the period 1991-2000). As the global economy continued to open, the weak competitiveness of the Mexican economy was exposed. In 2003, China surpassed Mexico as the United States’ second largest trading partner after Canada (Country Partnership Strategy -CPS-, 2004). In the World Economic Forum’s Global Competitiveness Report, Mexico slid from a position of 34 in 1998 to 48 in 2004 (out of a total of 104 countries). In addition, the World Bank’s Concept Paper for Mexico: Programmatic Competitiveness and Trade AAA (2004c) identifies the following recent challenges for the Mexican economy: (i) decrease in exports; (ii) job losses and migration of firms; (iii) decrease in FDI flows; and (iv) limited industrial production with high value-added and high R&D intensity. However, the prospects for higher growth in the US economy in 2005 and 2006 are widely expected to spillover into higher growth of the Mexican economy in the short run. But without sustained improvements in the competitiveness of the Mexican firms, medium and long-term growth rates will remain lackluster. Mexico’s innovation system relies heavily on foreign technology. In 2002, Mexico earned the negligible amount of US$ 48 million from technology intangibles (patent acquisition, technology licensing payments, protected knowledge and know-how transfer services), compared to the US$ 664 million it had to buy from abroad (a payments deficit of US$ 615 million or 93%). With a technology coverage rate of only 7%, Mexico is at the bottom of OECD countries. Further, Mexico is highly dependent on foreign know-how in sustaining strong technology export growth, in particular on US technology: the USA buys 90% of Mexico's total exports; maquiladoras (assemblers of foreign technology intermediate goods) in external industrial trade represented about 70% of Mexican exports of goods with a high integration of technology; and Mexico acquires 35% of all technology intangibles from USA. Therefore it is important to focus on how to strengthen the Mexican innovation system, which should play a central role in improving factor conditions and thereby restoring the long term competitiveness of the Mexican economy. The Mexican innovation system performs below par compared to economies of its income level. Mexico has one of the least effective and efficient innovation systems in Latin America, with a low ability to translate investments into innovation. In other words, Mexico shows a relative poor output from its R&D investment, resulting, for instance, in very low patenting activity (Lederman and Maloney, 2003). The low performance stems from a combination of factors: (i) Inadequate total investment in R&D. At 0.4% of GDP, the R&D investment level appears very modest compared to the OECD average (2.2%) and inferior to those of other emerging economies such as Brazil (1.1%), Chile (0.6%), or China (1.0%). Therefore, total R&D investment level should be gradually raised. The increase should come from both the public and private sector with an increasing proportion coming from the private sector. Public R&D remained constant from 1998 to 2004 at 0.3% of GDP with a slight downward tendency. (ii) Insufficient private investment in R&D, both as a proportion of GDP and as a percentage of total national R&D expenditures. Mexican firms invest a little above 0.1% of GDP in R&D, which compares to 1.5% in the OECD area, 0.4% in Brazil, 0.3% in Chile, and 0.8% in China. In 2001, the Mexican private sector financed only 30% of total R&D expenditures (the Government of Mexico provided 59%, higher education institutions 9%, and foreign investment, about 1%). As expected for the level of income in Mexico, the level of private sector R&D expenditures is below that of the other OECD countries (68% of total R&D expenditures). However the Mexican firms also under-invest compared to other emerging economies, such as Brazil (44%) and China (61%). (iii) Limited international participation and linkages. Despite being one of the ten largest economies, Mexico only funds 0.25% of the world’s R&D, and its science base produces only 0.7% of new global S&T knowledge, as measured by publications in top S&T journals. Currently Mexico has relatively few and scattered links with foreign knowledge centers, and the exchange of advanced students and researchers is low. Without sufficient contribution to the global pool of science and technology based knowledge, and full integration with other OECD countries’ innovation systems, the Mexican business sector will remain a distant follower and adaptor of foreign technology. Some initiatives aiming at networking academic and research communities between the United States of America, Canada and Mexico have been developed following the integration of Mexico into NAFTA, but with uneven and overall disappointing results. (iv) Inadequate business innovation in part due to inadequate linkages between public R&D and the productive sector, and few Science and Technology (S&T) based start-ups. Large companies account for over 80% of private R&D, however few have links with public R&D institutions and universities. This implies limited private sector access to basic and applied research, reduced relevance and commercialization of R&D, and a low return to public R&D investments. Technology-based start-up companies are relatively uncommon, because of lack of innovative capacity within the firms, insufficient public support to technology development in companies, a lack of entrepreneurship culture, unfavorable regulations for starting up businesses, and scarce venture capital funding. Recent government initiatives are successfully addressing these barriers. However, these programs are too limited in scope to impact the national innovation system as a whole, and scaling up is required. A recent study on Mexico by RAND Europe (Kahan, James; 2003) suggested that it would be important to consolidate monitoring and evaluation mechanisms in order to monitor the private sector response, draw lessons, and apply them gradually to improve and expand the programs. (v) Insufficient innovation capacity due to low science and technology skill base. Brains are at the core of the innovation process. Firms with a higher level of skills are more likely to innovate, and benefit from S&T knowledge existing elsewhere. Mexico counts 0.7 researchers per 1,000 economically active persons. This compares to 1 researcher in Brazil; 4 in Spain; 6 in Korea; and 14 researchers in the USA. This gap in advanced human capital impairs the scientific, technological and innovative capacity of the Mexican innovation system (NSF, 2003; HolmNielsen, Thorn, Balan, and Brunner, 2004). Further, the small number of professors holding a doctorate will remain a serious impediment for the development of internationally significant research, and up-to-date and relevant study programs in the next decade (CONACYT, 2001). The gap originates from a deficit of quantity, quality and relevance of graduate and post-graduate education, particularly in science and engineering. Mexico produces approximately 1,000 doctoral graduates (PhDs) per year in comparison to 4,000 in Korea; 6,000 in Brazil; and 45,000 in the USA. 2. Objectives Mexico’s 2001-2006 National Development Plan outlines a “Vision of Mexico in 2025.” A component of that vision is quoted by the CPS as follows: “It will be a dynamic nation, with leadership in the world, with a stable and competitive growth and with an all-inclusive development process in harmony with the environment.” The program will contribute to the borrower’s vision and higher level objectives (as stated in the National Development Plan) of “increasing and expanding the country competitiveness,” and “improving levels of education and well being,” with its interventions that will strengthen the national innovation system, improve total factor productivity, and ultimately impact on growth. The Government of Mexico envisions the national innovation system evolving to a “dynamic networked system” with increased internationalization, with multiple public-private partnerships, national and foreign, and with a particular focus towards strengthening Mexico position in NAFTA. The Program seeks to support the Government’s efforts to improve the competitiveness of the Mexican economy by strengthening the innovative capacity of the private sector, accelerating advanced human capital formation, and increasing the international integration of the innovation system. To achieve the program’s development objectives, a first phase operation is proposed with two major lines of investment, in addition to supporting the policy framework for and internationalization of Mexico’s innovation system. First, on the demand side, the program would increase support to business innovation; while, second, on the supply side the program would accelerate the formation of human capital (through strategic and coordinated use of the scholarship fund); and finally it would support the cohesion and effectiveness of Mexico’s S,T& I system. 3. Rationale for Bank Involvement The Mexican Government invited the Bank to support the on-going reforms in the Science, Technology and Innovation (S,T&I) sector, and to accelerate progress in their implementation, through the preparation of a follow-on operation to the current Knowledge and Innovation Project (KIP). The Government and the Bank included the enhancement of the Mexican economy’s competitiveness as one of the four pillars of the recent Country Partnership Strategy (CPS). This project is an integral element in the Bank’s support for strengthening of innovation, training and education, one of the five areas that compose Mexico’s competitiveness agenda as defined by Presidencia (the others being infrastructure, investment climate, energy and the financial sector). The project would have significant synergies with other Government and Bank activities, since it would: (i) benefit from the reduction of administrative red tape pursued within the investment climate area of the competitiveness pillar, through easier start-up of high tech companies; (ii) scale-up the venture capital and thereby contribute to a financial deepening, which is another goal of the competitiveness agenda; and (iii) invest into a well designed scholarship program, which would increase the quality and relevance of post graduate education, another important factor for competitiveness. Finally, the project is also aligned with the Bank’s strategy for middle-income countries (World Bank, 2004b) which emphasizes the need to assist governments in improving the competitiveness of their economy. Therefore, the project would have important learning aspects for the Bank’s support to other middle income countries. 4. Description The proposed duration of the program is ten years divided into an initial four-year phase and two subsequent three-year phases. The first phase (2006-2009) would help consolidate ongoing S&T sector reforms by strengthening business innovation and human capital development programs and building a strong system-wide policy and M&E system. In addition, evaluations and studies will be carried out, which will help identify areas of further investment in the following program phases. The second phase (2010-2012) would address the next steps in the building of a coherent innovation system, including: (i) further scaling-up of programs (particularly technology development and venture capital programs); (ii) building on the first phase’s proposed internationalization policies, by financing activities that strengthen the integration of the Mexican innovation into the global innovation system; (iii) enlarging the focus and sphere of the collaborative R&D networks funded in phase 1 in order to establish regional innovation clusters, and (iv) strengthening state-level innovation sub-systems, possibly piloting decentralized lending for S,T&I. The third phase (2013-2015) would emphasize the consolidation of funding mechanisms and incentives for the National Innovation System (across all areas and levels of government), with increased decentralization and therefore increased importance of the roles played by the state-level economic development agencies and science and technology councils. The first phase of the program would have two main investment components: (i) CONACYT Program to Promote Business Innovation, and (ii) CONACYT Program to Finance Scholarships for Excellence and Relevance; and a smaller capacity building component: (iii) Support for Policies to enhance Innovation and Internationalization. Component 1: CONACYT Program to Promote Business Innovation. The first component, CONACYT Program to Promote Business Innovation, would support the following of CONACYT’s competitive funding lines: (A) Consortia and Research Networks; (B) Venture Capital Fund; (C) Pre-competitive Fund; (D) Sectoral Fund for Economic Development (managed by the Ministry of Economy), and (E) Researchers and Technologists in Industry. These funds would support established and start-up companies, and public research centers integrating consortia, according to the operational guidelines for each fund. Subprojects would be funded on the basis of project proposals selected under the following competitive lines, and transfers would be made on the basis of signed grant agreements and implementation progress. (A) Consortia and Research Networks: the government strategy stresses the importance of the establishment of medium to long term agreements for collaborative R&D between public institutions and enterprises as a general mechanism to stimulate the National Innovation System. This subcomponent would increase support to linkages between groups of enterprises with existing R&D absorption capacity, and public R&D centers. Consortia and Research Networks would operate within the framework of strategic areas defined in the government strategy: information and communication technologies, biotechnology, material sciences, industrial design and manufacturing processes, infrastructure, and urban and rural development. Priority would be given to Consortia with international participation in order to advance the internationalization of the Mexican innovation system. This subcomponent builds on CONACYT’s pilot experiences from the formation of consortia in medical information technology and manufacturing of electrical transformers, where research is carried out both, within companies and at the public research centers. Companies cover 50% of total project costs with their own resources, the other 50% being transferred from CONACYT to the public centers. (B) Venture Capital Fund: (Emprendedores): this program for technology based start-up companies is being piloted under the current Knowledge and Innovation Project, and was designed with light bureaucratic requirements where the private entrepreneur assumes most of the risks. CONACYT partially funds a trust fund established with NAFIN (A Mexican development bank), and provides technological evaluation of start-ups requesting financing. NAFIN administers the fund and convenes private sector investors (e.g. angel investors, private venture capital firms) to leverage public funds. Five companies are being funded during the pilot stage. (C) Pre-Competitive Fund: also started during the current Knowledge and Innovation Project, the objective of this program known as Ultima Milla (Last Mile) is to help transform scientific and technological developments into viable high value products and services, bridging the gap between proof-of-concept and commercialization. Types of activities supported by Precompetitive Fund include prototype development, marketing studies and patent processing. Proposals for funding are evaluated on a competitive basis and come from companies and researchers in public institutions. (D) Sectoral Fund for Economic Development: this Fund is co-financed by CONACYT and the Ministry of Economy, and administered by the latter with technical evaluations and supervision carried out by CONACYT. The Fund provides matching grants targeted to SMEs, with larger companies being able to participate, provided they include SMEs in their proposals. Demand has steadily risen during the three funding rounds already completed, exceeding available resources by a factor of eight. Enterprises cover at least 50% of total project costs. This fund was inspired by a similar fund under the on-going KIP project. (E) Researchers and Technologists in Industry: this is a labor market insertion program, with the dual purpose of strengthening innovative capacity within firms, and creating linkages between the universities and private R&D sector through the “transfer” of advanced human resources. Program participants would include recent doctoral and masters graduates (i.e. beneficiaries of the scholarship program) co-financed in decreasing proportion to work within companies. Component 2: CONACYT Program to Finance Scholarships for Excellence and Relevance. The second component, CONACYT Program to Finance Scholarships for Excellence and Relevance, would support CONACYT’s scholarship programs, to increase both quality and relevance of human resources to society. In Mexico the availability of advanced S&T skills is low, and an improved supply of such skills pared with well targeted incentives would lead to improved innovative capacity. The scholarship program would support graduate studies at the doctoral, master and specialization levels, in accredited national programs and foreign programs in centers of excellence. This component’s activities would support the on-going reform of the scholarship program that seeks to better link supply of skills with demand from society, notably the private sector. Scholarships would be better targeted towards graduate programs of high relevance and excellent quality to improve Mexico’s S&T skill base. Therefore, scholarships would be demand driven, in the sense that they are increasingly allocated to students that participate in projects meeting the needs of states (implemented through the S&T funds jointly administered by CONACYT and the individual states of Mexico, the so-called Fondos Mixtos); the needs of sectors, like health and environment (through the S&T funds jointly administered by CONACYT and the federal line ministries, the so-called Fondos Sectoriales); and the needs of the private sector (through the Sectoral Fund with the Ministry of Economy, collaborative R&D projects and researchers and technologists in industry program). The component would build on ongoing reforms, which are supported by the Knowledge and Innovation Project, and the evaluations of graduate programs under the policy component (component 3). Further, it would prioritize the funding of scholarship towards international programs in order to utilize the scholarship program (and the students) as strategic human “knowledge bridges” between top foreign and national R&D institutions. Component 3 would support this component with actions geared towards the strengthening of the national graduate programs, not only assuring that all national programs are accredited under current national procedures, but also facilitating international accreditation for the best programs and promoting linkages with relevant foreign graduate programs. Component 3: Support for Policies to Enhance Innovation and Internationalization in Mexico. The third component, Support for Policies to enhance Innovation and Internationalization, would improve the innovation system by strengthening Mexico’s S,T&I policy framework, and increasing international integration. Further the component would support professional international exchange with strategic partners, and analytical work in order to raise awareness, share knowledge and experiences and promote learning for continuous improvement of CONACYT’s programs and Mexico’s innovation system. Activities under this component would therefore be of capacity building nature, and are grouped as follows: (A) Governance and Policy Development; (B) Support for Business Innovation Policies; (C) Support for Scholarship Policies; (D) Promotion and Diffusion Activities; and (E) Project Implementation Unit. (A) Governance and Policy Development: supporting policy background work and the consolidation of an OECD standard level national M&E system, which would provide feedback to the governing bodies, helping create policy development cycles. More specifically it would support performance evaluation of components 1 and 2, and include annual stakeholder workshops in order to solicit feed-back for improvement of program performance. Also, support for the reform process through the institutional strengthening of the S,T&I governing bodies, established by the new S&T Law, is included. (B) Support for Business Innovation Policies: including the review of the rules for intellectual property rights for public-private collaborative R&D and establish actions to bring IPR in Mexico up to international standard. (C) Support for Scholarship Policies: including actions for increased internationalization of the graduate programs, international accreditation of the best graduate programs, and a tracking system for graduates. (D) Promotion and Diffusion Activities: to assure enough outreach to potential beneficiaries, particularly those outside the Federal District. (E) Project Implementation Unit: will cover staff salaries and associated expenses of the implementation unit. 5. Financing Source: BORROWER INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ($m.) 191 191 Total 382 6. Implementation Institutional and implementation arrangements would be continued from the current Knowledge for Innovation Project (KIP), as they are performing on a highly satisfactory manner. CONACYT is the implementing agency through its Project Implementation Unit (PIU), in coordination with relevant Directorates of CONACYT. The PIU is housed within the Directorate for Administration and Finances, Dirección Adjunta de Administración y Finanzas, which reports directly to CONACYT’s General Director, and the PIU has excellent working relationships with the different CONACYT’s Directorates. CONACYT, and its PIU, have demonstrated high capacity for project implementation, including smooth interfaces with other important Government entities, such as NAFIN and the Ministry of Finance (SHCP, Secretaría de Hacienda y Crédito Público), which are critically important for project implementation, since these organizations are involved in the fiduciary aspects of multilateral projects. Institutional and implementation arrangements are constantly improving, as CONACYT is proactively participating in “Intragov”, a general government program for continued quality improvement of the public administration 7. Sustainability Sustainability is closely linked to government and beneficiary ownership. First, Government ownership is high, since the project would scale-up ongoing programs and enhance programs that are currently being piloted, within a context of non-additionality for loans, which guaranties budget support though budget line number 38 (specific for CONACYT). Second, beneficiary ownership has been rapidly growing, as there has been increased demand for the new partnership programs, particularly from the private sector but also from CONACYT’s research centers and public and private universities throughout the country. 8. Lessons Learned from Past Operations in the Country/Sector In addition to the lessons learned from the current Mexico Knowledge and Innovation Project, the technical design reflects lessons from various relevant Bank projects, particularly from three sets of S,T&I projects: in Brazil, Chile and Korea, where the Bank has had a long term involvement through sequential interventions in the sector. Further, the design incorporates experiences from the World Bank Institute’s work on the Knowledge Economy in Mexico, the Bank’s (2004e) “Science, Technology and Innovation Toolkit”, the up-date of the Review of World Bank Lending for S&T (2004f), and the Bank’s S&T stocktaking workshop in November of 2004. Finally the team has taken the evaluation of IDB’s S&T lending program and its strategy (2001) into account. The following major lessons learnt are reflected in the design: (i) Long term strategic planning and a coherent vision is a prerequisite for effective lending in a sector that depends on the development of complex national innovation systems and access to advanced human capital. Hence, it is necessary to provide continuity through changes in government, for example by maintaining a decade long program horizon. For this reason a three phase APL has been suggested for Mexico in this case. (ii) Matchmaking is necessary. Effective support of private sector R&D is difficult to design, first because of widespread lack of R&D capacity in the private sector, and a concomitant lack of in-depth understanding of R&D issues. For these reasons, Bank operations have included for example “platforms” between the public and private sectors, providing space for partnership building, improving communication and mutual understanding of issues, and “matchmaking.” This approach is suggested and integrated in the design of component one of the new operation for Mexico. (iii) The Bank’s S,T&I projects had a tendency to be overloaded with specific components to address specific constraints, and to satisfy multiple stakeholders of the NIS. Operations benefit from a simple structure (that supports the policy framework), monitoring and performance evaluation activities, and adjustable funding mechanisms which are linked to outcomes and performance. Therefore components one and two of this operation have been designed as program support for two CONACYT programs, which will contain the previously mentioned (sub-components) activities. (iv) It is important to reach balance between establishing critical mass in the science and engineering base, and creating incentives for private R&D, because it takes attractive and engaged partners to bridge the gap between science and business. International experience suggests that the private sector is not likely to take the lead in R&D investments at the current low levels of critical mass in a country such as Mexico. Therefore the new operation would balance the needs for increased advanced human capital with state-of-the-art incentives for private sector take off. (v) A venture capital component is key when there is a lack of other sources of technology finance, and enjoys positive returns if properly managed, as shown by India’s Industrial Technology Project. According to this project’s ICR, many technology ventures would not have happened in the absence of venture capital financing, or it would have taken much longer to take off, or their scope would have been significantly curtailed. Average returns were around 20%. (vi) Fiduciary and safeguard procedures should be as responsive to the beneficiaries as possible in order to attract the private sector. Traditional Government and Bank fiduciary guidelines have been overly bureaucratic, and have deterred firms from participating. The Bank’s increased flexibility on fiduciary arrangements provides new opportunities for more responsive investments in S,T&I. 9. Safeguard Policies (including public consultation) Safeguard Policies Triggered by the Project Environmental Assessment (OP/BP/GP 4.01) Natural Habitats (OP/BP 4.04) Pest Management (OP 4.09) Cultural Property (OPN 11.03, being revised as OP 4.11) Involuntary Resettlement (OP/BP 4.12) Indigenous Peoples (OD 4.20, being revised as OP 4.10) Forests (OP/BP 4.36) Safety of Dams (OP/BP 4.37) Projects in Disputed Areas (OP/BP/GP 7.60)* Projects on International Waterways (OP/BP/GP 7.50) Yes [] [] [] [] [] [] [] [] [] [] No [X] [X] [X] [X] [X] [X] [X] [X] [X] [X] 10. List of Factual Technical Documents Background Studies and Reports Acemoglu, Daron; Philippe Aghion, and Fabrizio Zilibotti, 2002. Distance to Frontier, Selection, and Economic Growth. NBER Working Paper Series 9066, Cambridge, Massachusetts. CONACYT, 2004 Informe 2001-2003 y perspectivas para el 2004 (2001-2003 Report and perspectives for 2004). * By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas ________ , 2003. Informe General del Estado de la Ciencia y Tecnología (General Report on Science and Technology). ________ , 2001. Consejo Nacional de Ciencia y Tecnología. Retos actuales en materia de capacidad científica y tecnológica, y competitividad. Diagnóstico 2001-2006 (Challenges on scientific and technological capacity and competitiveness. Diagnostic 2001-2006). ________ , 2001b. Innovation Survey on Manufacturing. Michael F. Crawford; C. César Yammal, Hongyu Yang, and Rebecca L. Brezenoff, 2004. Review of World Bank Lending for Science and Technology, 1980-2004; unpublished. World Bank. Washington, DC. Dahlman, Carl and Yevgeny Kuznetsov, 2004. Mexico’s Challenge of Knowledge-based Competitiveness: Toward a Second-Generation NAFTA Agenda. World Bank Institute. De Ferranti, David et al., (2003). Closing the Gaps in Education and Technology, World Bank, Washington, DC. ________ , 2002. From Natural Resources to the Knowledge Economy - Trade and Job Quality, World Bank Latin American and Caribbean Studies - Viewpoints, World Bank, Washington, DC de Roquefeuil, Alexis, 2004. Mexico – Science, Technology and Innovation System. LCSHD Background Paper, Department of Human Development, World Bank. Government of Mexico, 2004. Agenda de Competitividad: 2004-2006 (Competitiveness Agenda: 2004-2006). Holm-Nielsen, Lauritz; Kristian Thorn, Jorge Balan, and José Joaquín Brunner, 2004. Regional and International Challenges to Higher Education in Latin America. IMHE/OECD/WB, in press. Inter-American Development Bank, 2001. Science and Technology for Development – an IDB Strategy. Washington DC. Kahan, James, 2003. Technology Use and Productivity in Mexico: A Feasibility Study. RAND Europe. The Netherlands. Lederman and Maloney, 2003. NAFTA study. López-Acevedo, Gladys, 2001. “Mexico Technology, Wages and Employment”. Volume I and Volume II. World Bank, Washington D.C. López-Córdova, J. Ernesto, 2002. “Nafta and Mexico’s Manufacturing Productivity: An empirical Investigation Using Micro-level Data.” Paper presented at the LACEA Meeting, Madrid. Mayorga, Román, 1997. Closing the Gap. Inter-American Development Bank. Washington DC, National Science Foundation, 2003. Science and Engineering Indicators. OECD, 2004. Main Science and Technology Indicators. ________ , 2004b. Science, Technology and Industry Outlook 2004. World Bank, 2004. Memorandum of the President of the International Bank for Reconstruction and Development and the International Finance Corporation to the Executive directors on a Country Partnership Strategy of the World Bank Group with the United Mexican States. Report No. 28141-ME. Washington, D.C. ________ , 2004b. Memorandum from the President, Enhancing World Bank Support to Middle Income Countries, Revised Version. SECM2004-0071/1. Washington, D.C. ________ , 2004c. Mexico: Programmatic Competitiveness and Trade Analytical and Advisory Services Concept Paper. Washington, D.C. ________ , 2004d. Mexico: Programmatic Competitiveness and Trade Analytical and Advisory Services Concept Paper. Washington, D.C. ________ , 2004e. World Bank Science, Technology and Innovation Projects, A toolkit for Task Managers”, Washington, D.C. ________ , 2003. Project Appraisal Document on a Proposed Loan in the Amount of US$25.26 Million to the Republic of Chile for a Project: Science for the Knowledge Economy, in Support of the Program to Improve the Innovation System. Report No.25324. Washington, D.C. World Bank Institute, 2004. Knowledge Assessment Methodology, unweighted knowledge economy indexes: http://info.worldbank.org/etools/kam2005/unweighted/map.asp Project Processing Letter of Invitation to the Bank from the Ministry of Finance (SHCP); February 6, 2004. Mexico D.F. Preliminary project concept document written by the Mexican counterpart. Mexico D.F. March 2004. Aide-memoires for project preparation missions: April 2004, September 2004, November 2004. Mexico D.F. 11. Contact point Contact: Lauritz B. Holm-Nielsen Title: Lead Education Specialist Tel: (202) 473-6712 Fax: Email: [email protected] 12. For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Web: http://www.worldbank.org/infoshop