Innovation of SMEs and Effect on Productivity in Jalisco

Innovation of SMEs and Effect on Productivity in Jalisco

José G. Vargas-Hernández, Omar C. Vargas-González
DOI: 10.4018/978-1-7998-6632-9.ch011
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Abstract

Small and medium enterprises (SMEs) in Jalisco represent one of the main entities of economic activity that supports the bulk of the population living in the state; using statistics as a fundamental tool for conducting studies in the economic, natural, health sciences, among others, allows proactive foundations for decision making within companies by senior executives and in the field public by officials responsible for promoting the growth of the industry in the State of Jalisco. This research tries to represent, under a statistical scheme, the use and disposition of information and communication technologies (ICTs) as a tool to increase average productivity levels within companies and under the Cobb production function. Douglas determines the ICT impact.
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Introduction

In Mexico as in the State of Jalisco, the economic effects of the economic crisis suffered in 2008, as a result of excessive spending by Americans due to low interest rates, triggering an imbalance in the mortgage sector, is identified as the main cause of this crisis. For the country of Mexico as well as the State of Jalisco, the effects were evidenced in the real economy when our exports and remittances from the United States contracted, together with the reduction of confidence in the Mexican economy by entities that promoted the increase in R & D (Research and Development).

From these consequences the economy seems to have consolidated its stagnation in different areas of the economic activity, such as: mining, electricity, construction, manufacturing, commerce, services, transportation and communications. The strategic sectors are determined by the National Institute of the Entrepreneur (INADEM), for the state of Jalisco on12, and are grouped in the key and futures. The key sectors are the products for construction, agro industrial (Gourmet), electronic (Electronics and communications), travel services, and chemical products. The futures are the logistic services, medical services (medical tourism), information technology, green and alternative technologies, research and technological development services, wood products (Furniture and decoration), textile and clothing (Paz, 2020).

Electronic (Electronics and communications): Activities derived from the aluminum, iron and steel industry, manufacture of wire and springs, manufacture of cables for conducting electrical energy, plugs, contacts and fuses, rigid plastic laminates, industrial glass articles, manufacture of signal transmission and reception equipment, radio and wireless communication, manufacture of computers and peripheral equipment, measuring instruments, control, navigation, and electronic medical equipment, manufacture of audio and video equipment, Manufacture of other machinery and equipment for trade and services (Paz, 2020).

These activities represent the sectors that mostly absorb the Economically Active Population (PEA: Population aged 15 and over) through small and medium enterprises (SMEs). In Jalisco, micro, small, and medium-sized enterprises (MSMEs) are of great importance in public policies, and the State Government makes an important effort to promote them with training, advice, and financing (IIEG, 2018). The medium-sized companies represent 1% of the total of the companies of the state and support 22% of the Aggregate value. 77% of medium-sized companies are registered in the Central Area of ​​the State, mainly in the municipalities of Guadalajara, Zapopan, Tlaquepaque and Tlajomulco de Zúñiga (Paz, 2020).

Compared with national performance, the percentage of medium-sized companies in Jalisco with access to financing is greater than that of the national economy. The medium-sized company faces a problem of access to financial financing that is very different from the Micro and Small company. The company mediated access to formal or institutional financing sources such as the Commercial Bank (its main financing source), suppliers and partner contributions (Paz, 2020). The market financing is practically null. Only 0.2% of the medium-sized companies of the medium-sized companies of Jalisco have access to this type of financing, in the national plan only 0.4% of the financing.

As for the financing of the Median companies of Jalisco, we can appreciate that these are in a better position than the national media. Companies mediate access to different sources of financing such as the suppliers and the own contribution of the partners. They have enough profit margin to self-finance their growth, a situation that could affect its market competitiveness at any time with new competitors (Paz, 2020). However, this situation varies according to each strategic sector of the state. The industry has access to financial support, followed by trade and finally services. Recently, the Jalisco government announced last Friday an Emergent Economic Support Plan with a 1,000-million-peso bag for micro, small and medium-sized enterprises (MSMEs), corn producers and self-employed people who are affected by the social isolation measures adopted in the state to deal with the Covid-19 pandemic (Romo, 2020).

Key Terms in this Chapter

Productivity: Productivity is an economic measure that calculates how many goods and services have been produced for each factor used (worker, capital, time, costs, etc.) during a given period.

ENTIC: Survey on Information Technologies and Communications.

Innovation: Innovation is a change action that is a novelty.

R&D: R&D is an abbreviation for Research and Development and refers to the research and development work or department within a large company or organization.

ICTs (Information and Communication Technologies): Information and Communication Technologies, also known as ICT, are the set of technologies developed to manage information and send it from one place to another.

SMEs: Small or medium-sized company in terms of volume of income, value of assets and number and workers.

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