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.
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