Entrepreneurial firms and cluster competitiveness: institutions and public policy determinants

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.

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