This chapter provides quantitative evidence for the need of a regional approach to improving Mexico’s competitiveness. First it reviews the national context within which state performance should be contextualised. This context is one of macroeconomic stability but slow growth and stagnant productivity due in part to low levels of investment in knowledge economy drivers. The chapter then discusses the regional economic performance differences across the country, a tale of different “Mexicos” with persisting income and productivity gaps. Finally, there is an analysis at the state level of the inputs, linkages and outputs related to innovation performance. There are significant sub-national data gaps in Mexico for such an analysis, but available information shows there is clearly a concentration of innovation inputs and outputs in a limited number of Mexican states.