abstract
- This chapter contributes to the understanding of emerging dynamics of skill formation in medium and high-tech sectors at the subnational level in Latin America. It tackles two interrelated questions that are critical for Latin American countries: How do firms in medium and high-tech sectors secure the skilled workers they need amid hierarchical market economies? And in what ways do clusters promote collaboration for skills upgrading? Existing literature on skills formation points to dimensions associated with key actors like states and businesses: the role of regional government, the types of firms and their strategies to secure their workforce, and skills specificity. Yet in recent years, a new actor has emerged that merits careful consideration: organizational clusters. These clusters are formal associations of firms, government, and educational institutions offering a platform for discussion and collaboration in human capital development. To explore these dimensions and new actors, the analysis compares the evolution of skills formation systems in the aerospace sector from 2003 to 2022 in two Mexican states (Querétaro and Nuevo León). The case studies reveal that Querétaro's skills formation system became fragmented. Meanwhile, Nuevo León developed an articulated skills formation system. © Oxford University Press 2025. All rights reserved.