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Entrepreneurial firms and cluster competitiveness: institutions and public policy determinants

Published Online:September 30, 2013pp 25-49

Abstract

Globalisation brings many competitive challenges to emerging economies, particularly to small and medium-size firms (SMEs). Focusing on the information technology cluster in Brazil, Latin America’s largest economy, and a high-tech municipality (Campinas) the researchers examined the role of governmental institutions and their interaction with business and academe to foster competitiveness. Despite a high quality infrastructure and an excellent workforce, most public sector initiatives are not specific to SMEs nor to the needs of companies located in Campinas. Factors like: 1) the lack of a governance structure to coordinate policies in support of SMEs; 2) the absence of sufficient public resources to support innovation and bring new products to market; 3) the inaccessibility of research centres for small firms hinders the growth and development of Campinas as a dynamic IT cluster. The researchers propose 15 specific actions to improve the competitiveness of SME technology firms in Campinas and in the cluster.

Keywords

Brazil, clusters, public policy, entrepreneurial firms, information technology sector, small and medium-size enterprises, SMEs

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