efe-epaMexico City

Mexico has the potential to become a world pioneer in technological innovation, thanks to its demographic growth, infrastructure development and the surge in financial technology, according to a report released this Tuesday.

The study by US-based consultants Frost & Sullivan dubbed "The Future of Mexico - A Global Hub for Innovation," maintains that "demographic advantages peaking in the next decade and improved start-up support will lay the foundation for a robust culture of innovation."

"Mexico's performance in innovation has strengthened over the past few years due to steady reforms and government policies," said Richard Sear, senior VP at Frost & Sullivan, during the presentation of the report in Mexico City.

The study says that "Mexico's economy has the potential to gain more than $245 billion in cumulative gross domestic product (GDP) growth through 2025."

It also notes that the number of tech start-ups has tripled in Mexico between 2010-2018, when close to 1,900 venture capital contracts were finalized for a total investment of $22 billion.

"This has led to pro-private investment schemes, encouraging multinationals and local players to view Mexico as a viable hub for emerging technologies," Sear said.

For that reason, he argued that "with continued support from the new administration, Mexico can become a pioneer of innovation across Latin America and the globe" in such fields as artificial intelligence (AI) and cybersecurity.

Mexico is also well positioned to contribute to emerging technologies like electric vehicles, the rollout of 4G/5G telecom networks, smart green homes, and to traditional fields such as medical devices.

"With the largest fintech (financial technology) ecosystem in LatAm, Mexico is capable of building multiple start-up hubs in cities such as Mexico City, Guadalajara, Monterrey, and Tijuana," Sear added.

The report notes Mexico's potential in terms of its demographics, given that, according to the study, more than 45 percent of the Mexican population will be made up of Millennials and Generation Z members by the year 2025.

For that reason, it says the government should focus on "raising the standards of education and encouraging youth training programs and entrepreneurship."