Can local markets and clusters represent a powerful alternative to global markets? Do transnational corporations and global buyers play a role and enhance or undermine local firms' upgrading and learning? What opportunities do clustering and global value chains offer to SMEs in global markets? Upgrading to Compete shows that both the local and the global dimensions matter at once. Clustering and collaborating with other local firms offers substantial advantages, and participating in global value chains and interacting with foreign buyers and companies may enhance local firms' capabilities and access to distant markets as well. However, what matters most markedly is the form of governance of value chains and clusters, which affects the upgrading process of local SMEs. Thus, hierarchical and less cooperative chains often inhibit more complex and promising forms of upgrading. The book illustrates this point with original empirical evidence from several clusters in Latin America. Case studies from Brazil, Chile, Mexico, and Nicaragua are supplemented by desk studies on other experiences in the region. The methodological foundations and the policy implications of these analyses are also exhaustively addressed. (20070901)
Author(s): Carlo Pietrobelli, Roberta Rabellotti, Alessia Amighini, Ner Artola, Claudio Maggi Campos, Jose Eduardo Cassiolato, Clemente Ruiz Duran, Arlindo Villaschi Filho, Elisa Giuliani, Raquel Gomes, Helena Lastres, Eduardo Zepeda Miramontes, Mario Davide Parrilli
Publisher: David Rockefeller Center for Latin American Studies
Year: 2007
Language: English
Pages: 330
Contents......Page 9
Preface......Page 15
1 Clusters and Value Chains in Latin America: In Search of an Integrated Approach......Page 19
1.1 The Causal Logic of the Book......Page 22
The Sectoral Dimension of SMEs’ Upgrading......Page 28
The Research Question and the Methodology of the Study......Page 37
The Structure of the Book......Page 43
References......Page 48
PART I: Upgrading in Clusters and Value Chains in Natural-Resource-Intensive Sectors......Page 59
2 The Development of the Dairy Cluster in Boaco and Chontales, Nicaragua......Page 61
Collective Efficiency in the Dairy Products Cluster......Page 63
The Value Chains of the Dairy Products Cluster......Page 68
2.2 Production, Collection, and Pasteurization of Milk in Nicaragua......Page 77
Policy Lessons......Page 82
References......Page 87
3 Upgrading without Exclusion: Lessons from SMEs in Fresh Fruit Producing Clusters in Brazil......Page 89
Harvesting in the 1990s: The Rise of Supermarkets and Its Implications for SMEs......Page 94
The Public Roots of SME Production......Page 96
Resilience through Joint Action in Upgrading......Page 107
Policy Implications......Page 116
References......Page 120
4 The Salmon Farming and Processing Cluster in Southern Chile......Page 127
General History of the Salmon Cluster......Page 128
The Value Chains......Page 134
Collective Efficiency in the Cluster Development Phases......Page 145
Upgrading in the Cluster......Page 153
Conclusions and Considerations for the Design of Development Policies......Page 155
References......Page 158
PART II: Upgrading in Clusters and Value Chains in Furniture, Metalworking, and Software Sectors......Page 159
5 The Segusino Cluster: Boom and Bust in Furniture Exports......Page 161
Furniture Exports from Mexico......Page 162
Rustic Furniture Exports from Puebla......Page 166
5.4 Puebla Employees in Wooden Furniture Manufacturing and Repairs Registered with Social Security, 1996–2002......Page 171
Furniture Exports beyond the Segusino Cluster......Page 177
The Industrial Cluster of Chipilo......Page 179
The Export Decline Led by Segusino......Page 184
Policy Lessons......Page 186
References......Page 190
6 Local Production and Innovation Systems in Brazil: The Metalworking Cluster in Espírito Santo......Page 193
The Main Characteristics of the Local Metalworking Cluster......Page 195
Learning and Innovative Capabilities in the Local System......Page 202
Concluding Remarks......Page 204
References......Page 207
7 Value Chains and Software Clusters in Mexico......Page 209
7.2 Value Chain in the Software Industry......Page 213
The Software Cluster in Aguascalientes: Methods and Procedures for the Formation of Clusters......Page 220
Mexico’s Lessons on Policies for Cluster Formation......Page 233
References......Page 235
PART III: Upgrading in Clusters and Value Chains: Methodological Approaches in Measurement and Policy Support......Page 237
8 Upgrading in International Trade: Methods and Evidence from Selected Sectors in Latin America......Page 239
Measuring Product Upgrading through International Trade Data......Page 244
Selected Upgrading Experiences in Latin America in the 1990s......Page 249
Conclusions......Page 264
References......Page 267
On the Origins of Clustering......Page 269
9.1 Collective Efficiency across Sectors: Index of Collective Efficiency......Page 274
Chain Governance and Sectors......Page 288
Upgrading, Collective Efficiency, and Global Buyers across Sectoral Groups......Page 294
Concluding Remarks: Clusters, Value Chains, and Sector-Specific Upgrading Patterns......Page 309
References......Page 313
Policy Approaches Prevailing in the 1990s......Page 317
A Menu of Actions for Cluster Development......Page 321
10.2 A Sectoral Approach to Policy Design......Page 335
Conclusions......Page 342
References......Page 345
Tables......Page 12
2.1 Value Chains in the Nicaraguan Dairy Industry......Page 69
4.1 Production Chain of the Salmon Cluster in Southern Chile......Page 135
4.2 Production Cost Structure of Fresh Atlantic Salmon Filet......Page 136
7.1 Software Production Value Chain......Page 212
8.1 Exports and Unit Value of Apples from Brazil......Page 255
8.3 Exports, Export Value, and Unit Value of Melons from Brazil......Page 256
8.5 Export Trends for Selected Processed Dairy Products from Nicaragua......Page 258
8.6 Volume and Unit Value of Iron Ore Exports for the Two Major World Exporters......Page 261
10.1 Cluster Development Policies......Page 319
1.1 Patterns of Learning and Innovation in Different Sectors in Latin America......Page 36
1.2 New Field Studies on Selected Latin American Clusters: Basic Characteristics......Page 39
1.3 Case Studies......Page 40
2.1 Dairy Production Chain in Nicaragua and in Boaco and Chontales, 2000......Page 62
3.1 Fruit Production in Santa Catarina, Petrolina-Juazeiro, and Rio Grande do Norte......Page 91
3.2 Participation of SMEs in Fruit Production in Santa Catarina, Petrolina-Juazeiro, and Rio Grande do Norte......Page 93
4.1 Chile and Tenth Region: Evolution of Farmed Salmon and Trout Production......Page 129
4.2 Life Cycle Stages of the Chilean Salmon Cluster......Page 132
4.3 Number of Firms and Jobs in Cluster......Page 137
4.4 Main Businesses in Salmon Cluster in Southern Chile......Page 140
4.5 Collective Actions in the Chilean Salmon Cluster......Page 146
4.6 Innovation and Upgrading in the Chilean Salmon Cluster......Page 154
5.1 Mexico’s Exports of Wooden Furniture (Maquiladoras and Non-maquiladoras), 1991–2001......Page 163
5.2 Origin of U.S. Imports of Wooden Furniture: Top 10 Exporting Countries, 1992–2001......Page 165
5.3 Basic Statistics on Manufacturing Industry, Puebla, 1999......Page 167
5.5 Basic Balance Sheet Information on Segusino, 1995–2000......Page 176
8.1 Conditions for Defining Product Upgrading......Page 247
8.2 Analysis of Export Performance of Chilean Salmon Relative to Major World Competitors, 1990–2000......Page 251
8.3 Brazilian Iron Ore Production, 1999......Page 260
8.4 Export Performance of Mexican Wooden Furniture Relative to Major World Competitors, 1990–2000......Page 263
9.2 Value Chains’ Pattern of Governance......Page 289
9.3 Patterns of Learning and Upgrading across Sectors......Page 295
9.4 Upgrading in Traditional Manufacturing Clusters......Page 297
9.5 Upgrading in Natural-Resource-Based Clusters......Page 302
9.6 Upgrading in Complex Products Clusters......Page 304
10.1 A Menu of Actions to Support Cluster Development......Page 322
Contributors......Page 349
