Global Competition and Local Cooperation:

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Global Competition and Local Cooperation: Success and Failure in the Sinos Valley, Brazil
HUBERT SCHMITZ *
University of Sussex, East Sussex, UK
Summary.蠷ecent cluster literature suggests that joint action is essential for responding
successfully to major challenges. This article investigates whether enterprises in the
export-oriented Sinos Valley (South of Brazil) have stepped up cooperation in response
to intensi甧d global competition in leather footwear. Using a combination of quantitative
and qualitative methods, it shows a substantial increase in bilateral vertical
cooperation, contributing to a major advance in raising product quality, speed of
response and 痚xibility. In spite of these advances, the cluster has not been able to raise
exports and pro畉s have fallen. This seems related to the fact that upgrading was largely
limited to the sphere of production. Upgrading in other areas such as marketing, design
and image was attempted in an ambitious program of multilateral cooperation. The
program failed for two reasons: some leading enterprises put their alliance with a major
global buyer above cooperation with local manufacturers; and the state failed to
mediate at critical moments between con痠cting business associations and entrepreneurial
alliances. The paper concludes with suggestions for future research on global
competition and local upgrading.