'Upgrading In Global Value Chains: Lessons From Latin American Clusters'

In this chapter we present the main empirical fi ndings of our study based on our sectoral taxonomy. We investigate the hypothesis that enterprise upgrading is simultaneously affected by firm-specific efforts and actions and by the environment in which fi rms operate. The environment is crucially shaped by three characteristics: (1) the collective efficiency of the cluster in which SMEs operate, (2) the pattern of governance of the value chain in which SMEs participate, and (3) the peculiar features that characterize learning and upgrading patterns in specific sectors. Therefore, for each sectoral group we present the impact of the degree of collective efficiency and of the pattern of value chain governance on upgrading. We presentthem in sequence. In addition, some evidence of the origins of the various clusters is also presented as it may provide useful insights for the discussion and interpretation of the evidence. In each of the sections below, we address in turn each type of sector identifi ed in our taxonomy: traditional manufacturing, natural-resource-based sectors, complex products industries, and specialized suppliers.