uti I lze regional raw materials and generate proudcts for Internal consumption and for export, even In the case of the arid and tropical zones. Except for few rare cases, the smal I and medium sized Industry Is not capable of developing new products due to the following factors: lack of capacity of their technicians, engineers and administrators;· an Inadequate Infrastructure tor the development of technologies; obsolete equipment; lack of access to test labs; and scarcity ot:capltal. This generally leads to a copying of products from foreign patents or trademarks, or the In-bond processing of parts. The small and medium sized Industry frequently recur to sources of foreign technology not only tor the acquisition of basic know-how or for the design and Instal latlon of plants, but also to solve opratlve problems of commercial development, and even for the maintenance of their Industrial units, with the resulstlng significant expenditures. To link between the smal I and medium sized Industry and the research facilities and higher educat-Ion .Institutions Is practically non-existent. This means that Industry and research centers have no awareness of the resources and needs of their counterpart. In turn, the linking mechanisms presently In operation. do not have an Integrated promotion scheme to enable them to follow-up the activities comprising the research and development cycle. The manufactures In Mexico have a tradFtron of lnnovat~on. Invention and quality which should be taken advantage of, but the maJority of the succe$sful works and flndfngs In Industry· are flied away and a significant part of the production of our scientists and engineers Is unknown. The present scarcity of foreign exchange should represent a stimulus for the rescue of these works. The absence of a mechanism for the generation-transfer­ utilization of know-how Inhibits the small and medium sized Industry from using this know-how. Furthermore there are 
**Analysis**
The text appears to be discussing the challenges faced by small and medium-sized industries in Mexico, particularly with regards to their ability to innovate, access technology, and utilize know-how. It also touches on the lack of links between industry and research institutions, and the potential for Mexico's own innovation and inventions to be lost or undervalued. The text does not appear to be focused on natural resources, environment, agriculture, health, humanitarian aid, culture, or employment.

**Category**
Industry, Education, Science and technology