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Designing Policies for Local Production Systems: A Methodology Based on Evidence from Brazil

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Author Info

  • Wilson Suzigan

    (Universidade de Campinas)

  • João Furtado

    (Universidade de São Paulo)

  • Renato Garcia

    (Universidade de São Paulo)

Abstract

Using a previously developed methodology for identifying, classifying and characterizing local production systems (LPS) in Brazil, and evidence produced by a number of case studies, the paper suggests that policies aimed at LPS (or industrial clusters) should be tailored according to a typology of clusters. This typology must take into account the cluster importance for local or regional development, its share in the respective industry, and its characteristics in terms of production structure, trading schemes, institutional infrastructure, governance structures, and social contexts. The paper starts by reviewing, from the point of view of policy-making, the theories that support industrial cluster analyses, namely those that explain clusters as: outcomes of plain agglomeration economies and increasing returns; the result of spatial dynamic processes; knowledge systems emerging from the geography of innovation and agglomeration; governance structures, and as evolving complex systems. Next, the results from an application of the methodology to Brazilian data and information and from a number of case studies are summarized. Finally, the paper suggests policy guidelines with some measures of general application, aimed at problems observed in all LPS, and some specific measures differentiated according to a typology of local production systems that resulted from the application of the methodology.

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Bibliographic Info

Article provided by ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics] in its journal Economia.

Volume (Year): 8 (2007)
Issue (Month): 1 ()
Pages: 161–186

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Handle: RePEc:anp:econom:v:8:y:2007:i:1:p:161-186

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Related research

Keywords: Manufacturing Industry; Cluster; Local Production System; Industrial Policy;

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References

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  1. Altenburg, Tilman & Meyer-Stamer, JORG, 1999. "How to Promote Clusters: Policy Experiences from Latin America," World Development, Elsevier, vol. 27(9), pages 1693-1713, September.
  2. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-40, June.
  3. Scott, Allen J., 1995. "The Geographic Foundations of Industrial Performance," Mathematical Social Sciences, Elsevier, vol. 30(3), pages 319-320, December.
  4. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," CEPR Discussion Papers 1974, C.E.P.R. Discussion Papers.
  5. Audretsch, David B & Thurik, A Roy, 2001. "What's New about the New Economy?," Industrial and Corporate Change, Oxford University Press, vol. 10(1), pages 267-315, March.
  6. Allen J. Scott, 2004. "A Perspective of Economic Geography," Journal of Economic Geography, Oxford University Press, vol. 4(5), pages 479-499, November.
  7. Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 451-496, June.
  8. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476.
  9. Wilson Suzigan & Joao Furtado & Renato Garcia & Sergio Sampaio, 2005. "Knowledge, Innovation and Agglomeration - regionalized multiple indicators and evidence from Brazil," ERSA conference papers ersa05p362, European Regional Science Association.
  10. Feldman, Maryann P, 2001. "The Entrepreneurial Event Revisited: Firm Formation in a Regional Context," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 861-91, December.
  11. Schmitz, Hubert, 1999. "From ascribed to earned trust in exporting clusters," Journal of International Economics, Elsevier, vol. 48(1), pages 139-150, June.
  12. C. Dolan & J. Humphrey, 2000. "Governance and Trade in Fresh Vegetables: The Impact of UK Supermarkets on the African Horticulture Industry," The Journal of Development Studies, Taylor and Francis Journals, vol. 37(2), pages 147-176.
  13. Wilson Suzigan & Joao Furtado & Renato Garcia & Sergio Sampaio, 2003. "Local production and innovation systems in the state of São Paulo, Brazil," ERSA conference papers ersa03p251, European Regional Science Association.
  14. Lombardi, Mauro, 2003. "The evolution of local production systems: the emergence of the "invisible mind" and the evolutionary pressures towards more visible "minds"," Research Policy, Elsevier, vol. 32(8), pages 1443-1462, September.
  15. Bell, Martin & Albu, Michael, 1999. "Knowledge Systems and Technological Dynamism in Industrial Clusters in Developing Countries," World Development, Elsevier, vol. 27(9), pages 1715-1734, September.
  16. Ann Markusen, 1995. "Áreas de atração de investimentos em um espaço econômico cambiante: uma tipologia de distritos industriais," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 5(2), pages 9-44, December.
  17. Saxenian, AnnaLee & Hsu, Jinn-Yuh, 2001. "The Silicon Valley-Hsinchu Connection: Technical Communities and Industrial Upgrading," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 893-920, December.
  18. Schmitz, Hubert & Nadvi, Khalid, 1999. "Clustering and Industrialization: Introduction," World Development, Elsevier, vol. 27(9), pages 1503-1514, September.
  19. Wilson Suzigan & João Furtado & Renato Garcia & Sergio Sampaio, 2004. "Local production systems in Brazil: mapping, typology and policy suggestions," ERSA conference papers ersa04p267, European Regional Science Association.
  20. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
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