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It has been shown that clustering helps local enterprises in industrial districts overcome growth constraints and compete in distant markets in advanced and less developed countries. Nevertheless, recent contributions have stressed that more attention needs to be paid to external linkages and to the role played by global buyers to foster upgrading at cluster levels. In this study, we contribute to this debate focusing on the analysis of the relationships existing between clustering, global value chains, upgrading, and sectoral patterns of innovation in Latin America. We find that sectoral specificities matter and influence the mode and the extent of upgrading in clusters integrated in global value chains. Key words--Latin America, small enterprise, industrial policy, clusters, global value chain, innovation

Byline: Roberta Rabellotti (1) Abstract: The focus of this article is on the analysis of the collective economic effects deriving from the intense set of backward, forward, labor, horizontal and institutional linkages existing within clusters of enterprises. Among the economic effects two main categories are distinguished: external economies, which are the spontaneous by-product of economic activities undertaken within the clusters and cooperation effects, which are the results of explicit and deliberate cooperative behaviors of the economic actors. In the empirical investigation, these economic effects have been analyzed in four clusters of footwear firms in Italy and Mexico. The first result of the empirical investigation is the confirmation of the importance of collective efficiency both in the proper Italian districts and in the Mexican clusters. Nevertheless, there are considerable differences concerning the intensity and quality of the collective effects between the realities studied. Those differences are explained through the impact of the disparities in the outside environment on the core characteristics of the different clusters. Finally, some considerations about the need for moving from a static to a dynamic approach to explain differences between stages of development and growth trajectory patterns of the districts are put forward. Author Affiliation: (1) Economics Department, Universita di Padova, Italy Article History: Registration Date: 06/10/2004

In this paper we present the results of empirical research carried out in two footwear clusters located in Italy, the 'land of industrial districts,' and two clusters of footwear enterprises in Mexico. The aim of the study is to present a comparison between the ideal-typical industrial district, as it is defined in the literature, and the case studies in Mexico and Italy. Material from a survey of clusters of firms in Italy and Mexico reveals how clusters in both countries differ in some aspects from the 'textbook' model. Similarities and differences are investigated in some detail, and attention is given to the intensity and quality of backward and forward linkages, the existence of an 'industrial atmosphere' and the nature and extent of institutional support.

Small Enterprises and Economic Development: The Dynamics of Micro and Small Enterprises. By Carl Liedholm and Donald C. Mead. London: Routledge, 1999. Pp.viii + 176. [pounds]50. ISBN 0415 193 516 [...]

This paper explores the location strategies of multinational enterprises (MNEs) from emerging countries (EMNEs) in search for regional strategic assets. The analysis is based on a systematic comparison between EMNEs and multinationals from advanced countries (AMNEs) in order to unveil similarities and differences between these two major sources of foreign investment into the regions of the European Union. The empirical results suggest that EMNEs follow a distinctive logic in their location strategies. They are attracted by the availability of technological competences only when their subsidiaries pursue more sophisticated and technology-intensive activities. Conversely, EMNEs share some behavioural similarities with AMNEs in their response to the spatial agglomeration of investments. [ABSTRACT FROM AUTHOR]

Mexico, as many other developing countries in Latin America and elsewhere, has been moving in the 1980s toward a liberalized trade regime after a long period of import substitution. This paper analyzes the impact of trade liberalization on the cooperative behavior of shoe firms located in a cluster in Guadalajara. The empirical evidence shows that cooperation has increased. It also suggests that cooperation positively influences firms' performance and together with a favorable market environment contributes to the cluster's recovery. The study is based on fieldwork carried out in Guadalajara in 1996. Qualitative information was collected through in-depth interviews and quantified responses came from a questionnaire survey covering a sample of 63 shoe manufacturing enterprises.