Sunday, November 2, 2014

Policy Options - Elena Titova

Policy Question: What actions, if any, should be taken by the Mexican National Council on Science and Technology to establish the region of Baja California as a biotechnology center? 

The client for this research is Dr. Luis Gabriel Torreblanca Rivera, the Deputy Director of Technical Development and Innovation in the National Council on Science and Technology.

The policy options identified:
1. Maintain status quo. Under this policy option, the policy-maker would keep the current situation unchanged. This implies that the government would maintain separate and unconnected programs that provide only financial grants to individual companies on a competitive basis. The companies would have to continue applying for grant money from the government mainly to improve their technical processes and, subsequently, increase their market share.
2. Deregulate the industry. There is a very large and complicated body of laws in Mexico that regulate the biological security of the country. In particular, these laws include the Health Law, the Federal Plant Protection Act, the Federal Law on Metrology and Standartization, Federal Law on the Production, Certification and Trade of Seeds and other official regulations (Solleiro, 2014). A number of university scientists claim that the regulatory framework is the main obstacle for innovation in Mexico because it imposes very tough requirements for laboratory, pilot and commercial testing of the biotechnological products (Solleiro, 2014). The scientists are generally not familiar with the regulatory procedures, so they prefer to devote their invetigation to basic science and publications instead of generating innovative technologies. Therefore, the second policy alternative is to reconsider the regulatory procedures for development of new products, and thus facilitate innovative activites of scientists.
3. An economic policy that encourages creation of healthcare biotechnology SMEs. Such a policy will aim at creating a science-industry cooperation network in Baja California. As the biotechnology networks are truly international nowadays, location of the biotech start-ups will not be limited to this region. What is essential, is that the critical mass of the start-ups of the network will be located in Baja California. Production and research facilities will be located there as well. The output of such a policy would be an increase in the number of biotechnological products and services marketed in Mexico and abroad. The outcomes will include en increased share of private capital in the financing of R&D in the region, an increased share of high-skilled employment and increased tax revenue for the region.

References

1. Solleiro, J. (2014) Biotecnología y Bioseguridad en México. Retrieved from http://www.diputados.gob.mx/cronica57/contenido/cont13/anali5.htm

3 comments:

  1. This comment has been removed by the author.

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  2. Hi, Elena,
    Your policy question is interesting, about establishing a biotechnology center in Baja California. Based on your question, your second and third policy options choose two different directions to solve the question. They are creative.

    For the first one (maintain current policy), I don’t have any problem. You are absolutely correct, I think the government should do something, in order to improve the development.

    The second options, you choose the political direction and talk about current restriction. I am curious about what specific innovation policy should be made by government? How to change the law and regulatory procedures to decrease the restriction and encourage scientists? If the government sent the legal group to the scientists to help them, will it helpful?

    In the third option, main part is about the economic. It is really great, because The SMEs are a very important part in the technology development. My question is about the total cost of this options, will government invest huge amount of money? And will the products have the market in the future, to bring more profit?

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  3. Hi Elena,

    Your policy options are really impressive to me! You clearly presented your options from three different perspectives which is very good.
    For your second option, as you mentioned deregulate the industry would encourage the scientist to facilitate the innovative activities, I am wondering how can you deregulate the industry? You also mentioned Mexico has a very large and complicated body of law, do you plan to change this?
    I like you third option which is very innovative. The idea of creating a science-industry cooperation network in Baja California would help a lot!

    Good luck!
    Nan

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