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Determinants and Policies to Foster the Competitiveness of SME Clusters: Evidence from Latin America

  • Manuel Albaladejo

This paper attempts to identify key determinants of competitiveness in SME clusters, with especial reference to Latin America. It takes the debate forward as its extended framework adds country- and firm-level determinants to the existing cluster-level factors of the 'collective efficiency' approach. Based on an enlarged analytical framework, policies recommendations to foster clusters' competitiveness are provided at different levels. Empirical evidence strongly suggests that joint action may not be enough for clusters to face new competitive pressures. This confirms the narrow scope of the 'collective efficiency' approach, and suggests that policy intervention in Latin America should go beyond the mere promotion of inter-firm linkages to foster the competitiveness of SME clusters.

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File URL: http://www3.qeh.ox.ac.uk/RePEc/qeh/qehwps/qehwps71.pdf
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Paper provided by Queen Elizabeth House, University of Oxford in its series QEH Working Papers with number qehwps71.

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Handle: RePEc:qeh:qehwps:qehwps71
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  1. Mishan, E J, 1971. "The Postwar Literature on Externalities: An Interpretative Essay," Journal of Economic Literature, American Economic Association, vol. 9(1), pages 1-28, March.
  2. Patrizio Bianchi, 1993. "Journal of Industry Studies," Industry and Innovation, Taylor & Francis Journals, vol. 1(1), pages 16-29.
  3. Schmitz, Hubert, 1982. "Growth constraints on small-scale manufacturing in developing countries: a critical review," World Development, Elsevier, vol. 10(6), pages 429-450, June.
  4. Carlos E. Cuevas, 1996. "Enabling environment and microfinance institutions: Lessons from Latin America," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(2), pages 195-209.
  5. Schmitz, Hubert, 1995. "Small shoemakers and fordist giants: Tale of a supercluster," World Development, Elsevier, vol. 23(1), pages 9-28, January.
  6. 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.
  7. Berry, Albert & Escandon, Jose, 1994. "Colombia's small and medium-size exporters and their support systems," Policy Research Working Paper Series 1401, The World Bank.
  8. Schmitz, Hubert, 1999. "Global Competition and Local Cooperation: Success and Failure in the Sinos Valley, Brazil," World Development, Elsevier, vol. 27(9), pages 1627-1650, September.
  9. 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.
  10. Rabellotti, Roberta, 1999. "Recovery of a Mexican Cluster: Devaluation Bonanza or Collective Efficiency?," World Development, Elsevier, vol. 27(9), pages 1571-1585, September.
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