Learning and innovation under changing market conditions : the auto parts industry in Mexico

The research points to the relevance of understanding the role that traditional habits and practices (i.e., passive acquisition of new technologies, lack of implicit learning efforts, weak investments in machinery and equipment) play in shaping the development of an industry. It also considers how institutions (in the form of policies) can effect changes to (or reinforce) these habits and practices. It shows that without purposeful intervention to support learning, the policy regime is not enough on its own to ensure that technological learning and capacity building takes place. Therefore, building capacity locally and creating an institutional regime that supports innovation appears to be the only way in which learning and capacity development processes can be enhanced.