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

Author

Listed:
  • 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.

Suggested Citation

  • Wilson Suzigan & João Furtado & Renato Garcia, 2007. "Designing Policies for Local Production Systems: A Methodology Based on Evidence from Brazil," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 8(1), pages 161-186.
  • Handle: RePEc:anp:econom:v:8:y:2007:i:1:p:161-186
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    References listed on IDEAS

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    Cited by:

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    2. Daniela-Luminita Constantin & Carmen Beatrice Pauna & Mariana Dragusin & Zizi Goschin & Constanta Bodea, 2011. "The Question of Clusters in Lagging Regions: Do They Really Make the Difference? A Case Study in Romania," Environment and Planning C, , vol. 29(5), pages 889-910, October.
    3. Mario Scerri, 2012. "The introduction of the systems of innovation approach in economics curricula," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 5(1/2), pages 12-27.

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    More about this item

    Keywords

    Manufacturing Industry; Cluster; Local Production System; Industrial Policy;
    All these keywords.

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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