Local Productive Arrangements and local development in non-metropolitan municipalities of Sao Paulo, Brazil

Abstract

The objective of this paper consists in analysing whether Local Productive Arrangements (APLs)-the Brazilian version of a cluster-can improve the local development of their host municipalities. Most studies concern about the identification and mapping of APL but only a few examine their effects on the socioeconomic development of their regions. The major challenge to identifying lessons learned from APL is the lack of robust tools to measure whether or not such policies are successful at local development level. In this line a quantitative research is made to compare the local development among municipalities from the Sao Paulo State, in Brazil by using data from SEADE (Fundação Sistema Estadual de Análise de Dados). Local development is measured by a composite index (IDL) built by the authors and the Sao Paulo State Social Responsibility Index (IPRS). The former includes health and demographic dimensions which are not included in the latter. Municipalities with APL represent about 19% of the total. Based on analysis of variance, results suggest they have a better local development than municipalities without APL. Since most APLs are relevant for economic local development reasons, they play an important role both for the sectorial policies and for local development policy. This finding would validate the Sao Paulo State policies towards building and consolidation of APL.

Smart Specialization as a Tool to Foster Innovation in Emerging Economies: Lessons from Brazil

“…To this end, there is a concept in Brazil, that, similarly to smart specialization, aims at improving local development -Local Productive Arrangements (APLs). APLs are the Brazilian version of clusters: companies and enterprises located in the same region that are interlinked and represent a coordinated productive specialization [Alderete, Bacic, 2018]. They are tied together by some type of governance agreement, interact and cooperate with each other, and learn from one another or other local actors such as governments, research institutions, business associations, or funding institutions [MDIC, 2018].…”

“…A productive APL targets economy of scale and scope, as well as improvements in quality and productivity. An innovative APL on the other hand aims at decreasing risk, cost, and time while increasing interactive learning and innovative potential [Alderete, Bacic, 2018]. APLs are mainly supported by the Research Network Systems of APLs, an interdisciplinary research network based at the University of Rio de Janeiro, the National Research Council (CNPq), FINEP, SEBRAE, SENAI, IPTs, and the Embrapa [MDIC, 2018] cluster.…”

“…Due to a lack of robust measurement tools, it is difficult to draw lessons from Brazil's APLs for regional development. Alderete and Bacic [Alderete, Bacic, 2018] construct a composite index to measure local development in the municipalities in the state of Sao Paulo. They find that in the 19% of municipalities with APLs, local development is slightly better than in those without APLs [Alderete, Bacic, 2018].…”

“…Alderete and Bacic [Alderete, Bacic, 2018] construct a composite index to measure local development in the municipalities in the state of Sao Paulo. They find that in the 19% of municipalities with APLs, local development is slightly better than in those without APLs [Alderete, Bacic, 2018]. This result is an encouraging sign that clusters and cluster policies can be a key building block for countries trying to design smart specialization strategies, especially Brazil.…”

Local Productive Arrangement for a Cooperative Unit in Isle of Youth, Cuba

“…In the literature consulted, the management of innovation, as a process, has been addressed by several authors, among which are: [4][5][6][7][8][9][10][11], those that address the link between innovation and local development as a dynamic of articulation between different actors of the social fabric, from the innovation systems.…”