In May 2013, the Wilson Center's Mexico Institute published a short paper calling on the governments of Mexico and the United States to form a high-level bilateral working group on educational exchange with government, private sector, and academic representation. Based on a recognition of the economic, public diplomacy, and business benefits of deepening educational cooperation, the paper argued for a focus on STEM subjects and emphasized the importance of language training, public-private funding partnerships, and the creation of binational joint-degree programs. Later that year, the U.S.-Mexico Bilateral Forum on Higher Education, Innovation, and Research (known by its Spanish acronym FOBESII) was created by Presidents Obama and Peña Nieto as part of the U.S.-Mexico High-Level Economic Dialogue. Launched in 2014, FOBESII seeks to "expand opportunities for educational exchanges, scientific research partnerships, and cross-border innovation to help both countries develop a 21st century workforce for both our mutual economic prosperity and sustainable social development." It aims to promote binational cooperation in higher education and research, especially regarding important areas for innovation in the United States and Mexico, by promoting programs for student mobility, academic exchange, research, and innovation in areas of common interest to contribute to the competitiveness of the region. This report argues that, while FOBESII has done much to expand educational exchanges, increase joint research, and promote innovation, it has yet to achieve its stated goals and continues to face serious challenges. The authors argue that to overcome these challenges, future initiatives must focus on advancing private sector engagement, workforce development, and improving public communication and outreach. FOBESII continues to be a relevant and important initiative, but it is in urgent need of restructuring and redirection if it is to make a significant contribution to bilateral affairs and regional competitiveness.