Mexico’s lack of productivity growth is one of the primary barriers to country competitiveness. Unlike in many OECD countries, there are relatively few incentives provided by national policy in a range of policy families to promote the development of regional innovation systems and clusters as a vehicle for supporting productivity growth (see Chapter 2). Are Mexican states (and in some cases municipalities) able to fill the gap? Although in a federal country the expectation would be for states to take a lead role in supporting regional innovation systems, the high level of fiscal centralisation (see Chapter 4), along with the territorial concentration of innovation resources within the country (see Chapter 1), are among the barriers for states.