You need a clear system of rules and regulations to create a business environment in which innovators can thrive. One of the reasons that Silicon Valley is in the United States and not Russia is because of the strength of the U.S. legal and patent systems. Here’s where Mexico pulls ahead. According to the World Bank, Brazil ranks 121st in ease of starting a business. Mexico ranks 36th. The Mexican government is now also cracking down on the monopolies that have kept service poor and prices high in key sectors like telecommunications. If these efforts are successful, they will open up more opportunities for startups and make life easier for entrepreneurs.
5. Location: The Advantage Goes to Mexico
It has been said that being neighbors with the U.S. has been both a blessing and a curse for Mexico. In terms of trade, investment and innovation, it’s mostly a blessing. When Silicon Valley investors think about Latin America, they go to Mexico first. It’s next door and shares a time zone with both California and Texas. It’s no coincidence that two of Mexico’s biggest innovation centers, Tijuana and Monterrey, are in Northern Mexico. Meanwhile, São Paulo is a 13-hour flight from San Francisco and 10 hours from New York.
So if you cut through the noise and look at the big picture, Mexico is the place to be for innovation in Latin America. It has all the ingredients. Now it just needs to put them together.