Strengthening innovation and competitiveness through cooperation between European and Latin American regions

Geographic location Territorial extension184,934 km 2 / 71,403 sq mi Border line592 km / 368 mi Coast line1,207 km / 750 mi Population (2005)2.3 million Economically active955,161 Median age23 Northwest of Mexico, bordering with Arizona, USA and the states of Baja California, Chihuahua and Sinaloa in Mexico There is rapid population growth in US regions near Sonora border. Pacific rim economies

Economic performance Economic growth% CAGR: 5.8% Job creation#29,62430,76031,99231,176Average: 30,888 Foreign direct investment M Euro4701, Accumulated: 2,324 Per capita incomeEuro4,5615,8126,1076,695CAGR: 3.7% Employment by economic sector From 2006 to 2008: Sonora advanced 24 positions in a nationwide ranking for Economic stability (going from position 30 in 2006 to position 6 in 2008). Growth of 81% in fixed and mobile phone penetration. An increase of 64% in the number of Internet users. The public expenditure on investment growth 45%

Sonora’s competitiveness agenda (Sectors) Automotive and aerospace Agribusiness and biotech Mining Tourism Knowledge-based economy (digital cities) Information and communication technologies Logistics services Energy & Water management  Internationalisation (Forum di Torino, Sonora- Arizona Commission for regional competitiveness, expanding partnerships through Europe and Asia)

Productive sector growth trough innovation infrastructure and knowledge development Enhance research capabilities Develop and attract high- qualified people More access to research centers for industry Increase the number of collaboration networks Public policy to foster industry development Better access to knowledge and technology Sonora’s Competitiveness Agenda Strength state-wide human capital system Develop international networks and collaborative projects Increased regional capability on innovation and competitiveness S e c t o r s

Forum di Torino: Facilitating innovation efforts through international cooperation Sonora: A founder member of FdT. FdT serves as a gateway between LatAm and European regions. Our strategy aims to increase collaboration with European regions. An increase in FDT member regions is expected for 2009, bringing more collaboration opportunities.

Sonora State projects with European Regions Aquiculture & Seaculture with Galicia (ES) – EU – Mexico Aquiculture Network – MoU with INTERCO Aquitaine – European regions’ companies accessed to distribution networks in USA – Joint projects to improve organic breeding capabilities Viticulture – Technical visits that resulted in collaboration projects with France companies Forest – MoU with CIS Madeira in Galicia (ES) – Joint research project among European and Mexican universities and R&D centres

Sonora State projects with European Regions (cont’d) Specific interest Tourism – The Sea of Cortes (Sonora’s coastline) has served for many years as a research area for R&D centres and agencies from Europe. Water & Environment – Joint research project in remote sensing, GIS (Geo-referenced information system), hydrology... with Institut de recherche pour le développement (France). – Irrigation water management project funded by EC (6 th FP) Agribusiness – Joint project with University of Almeria (ES) in Mexico. Almeria Producers’ letter of intention to invest €1 million in protected agricultural crops in Sonora.

Knowledge Economy Index for Sonora (Mexico), 2005 and 2007 Institutional economic regime Innovation system Education and human resources Information infrastructure GDP annual growth rate, Human development index Trade policy State of rights Regulatory framework Researchers in Mexican Research System by 100,000 inhabitants Requested patents by 100,000 inhabitants Scientific and technical papers published by 100,000 inhabitants. Community Digital Centers by 100,000 inhabitants Houses with computer Access to fix telephones Mobile telephone penetration Knowledge Economy Index for Sonora: 2005: : Knowledge Economy Index for Mexico: 2005: : Position in national ranking: 2005: 7th 2007: 4th Sonora Net tertiary enrollment rate Net secondary enrollment rate Knowledge Economy Index, 2005 Knowledge Economy Index, 2007 Literacy rate (Population above 15 years-old)

European and Latin America Regions Working together long time ago... with a big potential to growth Regions are the engine for national economic development and the main partners for international collaboration. Emerging sectors in Sonora (such as aerospace, biotech, ICT, etc.) are receiving important governments’ support and funding. Proximity with US markets and their connection with the Pacific rim makes of Sonora an excellent potential partner.