RESPONDING TO GLOBAL PRESSURE

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RESPONDING TO GLOBAL PRESSURE :THE ROLE OF PRIVATE PARTNERSHIP AND PUBLIC AGENCIES IN THE SINOS VALLEY, BRAZIL

Introduction
It is now well established that clustering and networking help small and mediumenterprises to grow and compete in distant markets. The evidence comes fromcase studies carried out in many countries and covering the 1970s and 1980s. Itis less clear how local clusters cope with the global competitive pressures typicalof the 1990s. This paper sums up the experience of a Brazilian cluster which onewould expect to do well: the shoe producing Sinos Valley in Rio Grande do Sul.1By the end of the 1980s, the cluster had become a major exporter of leathershoes to the USA and Europe. Recent research has shown both success andfailure in responding to the global competition of the 1990s. Drawing lessonsfrom this case is particularly interesting for this conference. It shows that cooperationamongst local enterprises strengthens their ability to compete globallyand that business associations can play an important role in identifying the keyproblems and proposing solutions. However, it also shows that the state is notredundant. Even where local industry and business associations are already welldeveloped, public agencies are needed to mediate conflicts between businessassociations and entrepreneurial alliances and help forge a local innovationconsensus.