Mexico's innovation cha-cha

The Mexican government faces significant challenges in providing resources and implementing policies, to support steps that have been taken to strengthen its science and technology capacity. The country's research and development (R&D) investments was less than 0.4% of its gross domestic product (GDP) in 2004, as compared with other countries. Abundant natural resources, such as oil, along with closed and regulated economy are some of the main factors that have prevented the government and companies from investing in R&D activities in the country. Severe financial crisis experienced by the country during 1980s that increased inflation to more than 150% was another factor, which affected the government's efforts to strengthen research and development activities in the fields of science and technology in the country.