Mexico’s federal government has set aside 1.5 billion pesos (US$81 million) to stimulate technology investment by private enterprises.

Officials say they are hoping to support as many as 375 technology development projects this year.

Under the program, private companies and universities will get 30% tax credits on the total value of their investment in technology. If a company found the tax credits exceed the tax it owed to the government, it can carry forward the unused credits to future fiscal years.

Those who lease the specialized equipment and machinery necessary for the development of technology are also eligible to seek the tax benefit. The provision of training to young professionals and fees paid to researchers will also be counted as technology investment.

Analysts are optimistic that the stimulus program will boost the technology talent pool in the country, with officials expressing confidence in attracting US$270 million in technology investment by the end of this year.

Technology investment has been on the rise in Mexico in the past few years, but the amount of investment looks small when compared with figures from OECD countries. According to Spanish newspapers, Mexico’s investment in technology and research & development (R&D) accounted for 0.60% of its GDP in 2016, far below the OECD average of 2.4%.

Determined to spur technological innovation, the government says the increased adoption of technology can help curb corruption, create jobs, and foster a knowledge economy.

The Ministry of Finance and Public Credit (SHCP) and the National Council of Science and Technology (CONACYT) have taken charge of managing the stimulus program.