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Governments and business leaders are increasingly aware of the role that innovation plays in economic growth, development and competitiveness. There are imperative challenges for Latin American countries, among them, poverty, social inclusion, sustainable development, climate change, natural disasters, productivity, improve the quality of education and health. Innovations are essential to drive economic growth and prosperity in the region. According to the Global Innovation Index (2015), Mexico is ranked 57th. Most of the research on innovation performance is mostly focused on technological innovation. Therefore, the main variables used, such as patents and number of scientific publications, do not always reflect the other types of innovations (i.e. business model, organizational, etc.) that are developing in emerging markets. The aim of this paper is to analyze the Mexican innovation system using a broad concept with a focus on other types of innovation including cultural aspects to identify the main characteristics that distinguish and determine how innovation in Mexico is formed. Although the Mexican government has improved its institutional structure for innovation and its support policies, they need to evaluate programs and adjust incentive schemes based on performance to improve their innovation policy. Purpose - The purpose of this paper is to examine the Mexican National Innovation System using a broad concept with a focus on other types of innovation and including cultural aspects to identify some of the main characteristics that determine how innovation in Mexico is formed. Design/methodology/approach - The national innovation systems framework is used to review the Mexican innovation policy.A review of relevant literature on national innovation systems and Mexican innovation policies with data from the Global Innovation Index and INEGI were used for this paper. Findings - Higher private investment in R&D is needed to enhance innovation, the Mexican government needs to incentivise the private sector investment and collaboration with higher education institutions on innovation projects is essential. Mexico has improved its institutional structure for innovation and its support policies.An explicit innovation policy is recent and it is difficult to evaluate its effectiveness. Research limitations/implications - This study contributes to the debate on how to improve the Mexican innovation system with emphasis on a broad concept of innovation.The Mexican innovation data is limited. Originality/value - This paper provides a landscape from which policy makers and academics can build on to present proposals for ways to improve innovation performance in Mexico and other Latin American countries.

Purpose - The purpose of this paper is to compare the three largest economies in Latin America (Brazil, Mexico and Argentina) with other economies that have another type of capitalism, in that way we can extract some effects of the hierarchical capitalism in Latin America Design/methodology/approach - The data were taken from World Economic Outlook (IMF), The Global Innovation Index (INSEAD)and the Democracy Index (The Economist). The selected countries are: Argentina, Brazil, Mexico, South Korea, Spain and Croatia. We establish a comparison among countries in the following dimensions: economic growth, innovation and democracy. Findings - The comparison shows that Argentina, Brazil and Mexico have lower level of economic growth, innovation performance and democracy level than South Korea, Spain and Croatia. The variety of capitalism in Latin America (hierarchical) has lower performance than others kinds of capitalism in other regions of the world. Research limitations/implications - We have compared Latin American countries with countries from other regions of the world. However, a comparison may include more countries and results could vary. Originality/value - The results tend to support the idea that hierarchical capitalism has poor results in comparison with other varieties of capitalism.

The Latin American capitalism is hierarchical (Schneider, 2009), due to the existence of monopolies and oligopolies and with high influence of multinationals and large national companies. That situation has an impact on several variables, both economic and social. The aim of this paper is to compare the three largest economies in Latin America (Brazil, Mexico and Argentina) with other economies that have another type of capitalism, in that way we can extract some effects of the hierarchical capitalism in Latin America. The comparison is based on the following variables: economic growth, innovation and democracy.