Industrial Innovation and Environmental Regulation: Developing Workable Solutions

By Saeed Parto; Brent Herbert-Copley | Go to book overview

5
Toward a theory of innovation
and industrial pollution:
Evidence from Mexican
manufacturing

Kevin P. Gallagher

This chapter discusses how environmental conditions in Mexico are worsening in part because of a lack of capacities for linking Mexico's National Innovation System (NIS) with environmental policymaking and for a lack of innovation-based environmental policy in general. Interestingly however, this chapter will show that by no design of government policy, a few exceptional cases have occurred whereby new investment in Mexico has resulted in the deployment of less-pollution-intensive technology. Indeed, in some sectors Mexico is less pollution intensive than its counterparts in the United States. Based on these observations in Mexican industry, a theoretical framework is put forth that draws on Nelson's (1981) observations on technological change. Implications for innovation and environmental policy are then discussed for Mexico and other developing countries.


Integration, growth and innovation in Mexico

The case of Mexico offers many lessons for current discussions regarding economic integration and sustainable development because Mexico has a very long history of economic integration. Whereas many nations are just now considering a deep level of integration into the world economy through regional or bilateral arrangements, or through agreements of the World Trade Organization (WTO), Mexico began liberalizing its econ-

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