Innovation as a Necessity Across Industries
In an increasingly uncertain environment where market rules change rapidly, innovation has moved beyond the tech world to become a transversal necessity. Today, even the most traditional industries—such as agriculture, education, or healthcare—must take on a leading role in transformation.
Innovation is not just about technology; it’s about integrating new ways of thinking and operating to efficiently solve old problems. International organizations like the World Economic Forum have identified innovation as one of the most determinant capabilities for economic growth. It’s no surprise that the world’s most competitive regions also invest heavily in scientific, digital, and business development.
An Investment Opportunity Not Fully Utilized
Venture capital is a crucial tool for funding this innovation. Recent data shows that investment in technology and innovation is growing at an annual rate of 15% to 20% globally, according to McKinsey. Sectors like artificial intelligence, blockchain, autonomous mobility, and biotechnology are seeing their projected value multiply by 2030.
For instance, the blockchain market could reach $306 billion by 2030, growing at a compound annual rate of over 58%. Meanwhile, the global artificial intelligence market is estimated at $1.81 trillion for the same year.
However, in Mexico, investment in these sectors remains minimal. Despite having cases like Bitso—Mexico’s first unicorn in the crypto sector—national participation in these global trends is still very limited. This isn’t due to a lack of talent or need, but rather a lack of structured support and a more active venture capital culture.
To ensure Mexico’s traditional industries evolve and remain competitive, we must channel capital towards startups and SMEs developing solutions in these sectors. This involves more than just creating new apps or digital platforms; it also includes applying AI to agriculture, blockchain to food traceability, or health technologies to make diagnoses and treatments more accessible.
The Role of SMEs in This Transition
Mexico is a nation of SMEs, and that’s precisely where the transformation potential lies. These businesses represent more than 70% of formal employment and are closest to real market needs. Their ability to adapt and implement changes is a significant advantage that should be leveraged.
The key lies in formalization, structuring, and accessing capital. Informality remains a barrier to both growth and innovation. SMEs need to think long-term, develop technological capabilities, and connect with funding sources like venture capital. According to the Mexican Private Capital Association (AMEXCAP), venture capital in Mexico has shown sustained growth, with an annual compound growth rate of 25% over the past five years.
At WORTEV, we frequently observe entrepreneurs with good ideas losing sight of the opportunity’s size due to inadequate support and funding. Embracing innovation involves assuming risks, but it also opens doors to returns and scalability that are hardly achievable through traditional operational models.
Three Recommendations for Entrepreneurs Seeking Innovation
- 1. Invest in Knowledge. Staying updated on global trends is as important as understanding local needs. Any industry can benefit from tools like data analytics, automation, or digital platforms.
- 2. Seek Strategic Alliances. Collaboration between traditional businesses and tech startups is a powerful way to innovate without having to develop everything from scratch.
- 3. Formalize and Professionalize. Innovation also involves improving internal processes, measuring results, and operating with clear financial clarity. Informality limits access to funding and hinders the potential for scaling.
Key Questions and Answers
- Q: Why is innovation crucial for traditional industries? A: Innovation is no longer exclusive to the tech world; it’s a necessity for all industries to remain competitive and efficient.
- Q: How can Mexican SMEs contribute to this innovation? A: By formalizing, accessing capital, and integrating technology, SMEs can drive transformation in traditional industries.
- Q: What are the key recommendations for entrepreneurs seeking to innovate? A: Invest in knowledge, seek strategic alliances, and formalize and professionalize operations.
