Nuevo León has set aside 160 million pesos (approximately US$8.9 million) under its Industry 4.0 initiative to stimulate the growth of information technology and digital media firms operating locally.

The government will finance about 75 projects, involving as many as 400 firms in developing technology solutions for wide-ranging sectors, including agriculture, health, and tourism.

According to El Economista, the plan was revealed at a meeting between Turner Dávila, Secretary of Economy and Labor in the state government, and representatives from industry associations, such as Interactive Cluster of Media and Entertainment of Monterrey.

“We want to be the new Bangalore,” Turner said at the meeting. “Nuevo León has a stronger information technology and software development industry than other states. We must strengthen these firms.”

The firms will collaborate with universities and develop solutions in technologies including augmented reality, virtual reality, internet of things (IoT), and artificial intelligence.

The initiative is expected to generate a slew of contracts for Monterrey’s technology industry, motivating IT service providers to approach manufacturers with proposals to develop software.

The government says it wants to invest about 120 million pesos (approximately US$6.7 million) every year in projects of this kind, as it believes that the initiative will generate jobs and create a new pool of technology talent.

Directly bordering the United States, Nuevo León is home to scores of successful software startups, which employ more than 11,000 professionals.

It is also blessed with a steady stream of talent, with over 1,500 new IT students graduating every year from universities such as the prestigious Tec de Monterrey (ITESM).