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The objective of this study is to analyze the processes of technological innovation of micro and small enterprises in the productive arrangement of plastic materials in the southern region of the state of Santa Catarina. To achieve the objective, field research was conducted by applying questionnaires to 56% of all the enterprises in the region. The results stress that the technological qualifications derive from interactive processes available in the area of production and interactive relationships between productive agents, suppliers and customers. In this context, we found that companies have used informal mechanisms of learning processes, such as learning by doing, learning by using and learning by interacting strategies, which have yielded incremental innovations in the examined sector. Based on these results, we are able to propose the following policies aimed at local development: create conditions for the development of R&D initiatives, enable and to train the local labor force stimulating innovative practices, promote interaction among agents aiming at innovation simulate forms of governance and cooperative alliances
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