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State-business Relations and Industrial Upgrading in the Digital Era: The Cases of Software and Aerospace Sectors in Mexico (2000–2012)

Published online by Cambridge University Press:  08 January 2021

Mariana Rangel-Padilla Open the ORCID record for Mariana Rangel-Padilla [Opens in a new window]
Mariana Rangel-Padilla*
Affiliation:
Instituto Tecnológico y de Estudios Superiores de Monterrey, Political Science, Monterrey, Mexico64849
*
*Corresponding author: Mariana Rangel-Padilla, Email: [email protected]
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Abstract

Developing countries face the daunting challenge of stimulating innovation-intensive sectors to increase their participation in the knowledge economy. In this context, two pressing questions arise: What types of state-business relations foster the adoption of industrial upgrading policies? And, what are the mechanisms through which some state-business relations configurations shape the likelihood of policy adoption under more democratic and open conditions? Bridging developmental state and business politics literature, this paper presents a novel framework that posits that the levels of bureaucratic quality and business cohesion generate diverse industrial upgrading policymaking patterns, and thus outcomes. An in-depth case study of the software sector and a cross-case comparison of the aerospace sector in Mexico during the 2000s illustrate and refine the framework. This article makes three main contributions. First, it expands extant political economy theories of industrial upgrading in developing democracies. Second, it improves our understanding of the private sector by carefully analyzing sectoral business cohesion. And third, the paper specifies the mechanisms through which bureaucrats and firms in democratic developing countries collaborate to enact programs that spur high-tech industries in the twenty-first century.

Keywords

state-business relationsindustrial policydeveloping countriesLatin AmericaMexico
Type
Research Article
Information
Business and Politics , Volume 23 , Issue 3 , September 2021 , pp. 309 - 329
Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press on behalf of V.K. Aggarwal

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Footnotes

†

I am grateful to Gerardo Munck, Carol Wise, Bárbara Zárate, Scott Wilbur, and Fabián Borges for their support and comments on earlier versions of this article. I would also like to thank the Latin America/Comparative Politics group at the University of Southern California, the REPAL 2017 Conference participants, and the two anonymous reviewers for their constructive feedback.

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