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Expansion of the maquiladora industry has generated a substantial part of the industrial growth in northern Mexico during the last 25 years. Initially, these plants carried out labor-intensive activities using rudimentary technology under precarious conditions. However, since the mid-eighties, many plants introduced state-of-the-art technologies, modern organization and a well-trained workforce; also, more strategic functions were delegated to local plants. This article summarizes the main findings of recent studies concerning the evolution and consequences of the maquiladora-based model of industrialization, emphasizing the technological learning process associated with the industrial trajectory of the region. The conclusion is that the industrialization strategy based on labor costs has been exhausted. Today, the option is to move toward specialization in knowledge-supported and value-added industrial segments.
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