Classification for arrangements of small technology-based firms

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This presentation sets out to advance further in the classification and characterization for arrangements of small technology-based firms – such as clusters, technology parks and local production systems – based on the contribution of a case study made in a Brazilian small town, located in the South of Minas Gerais State, called Santa Rita do Sapucaí, where since the mid 1970's a fertile environment grew up for innovation in electronics, system and components.

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Classification for arrangements of small technology-based firms

  1. 1. Classification for arrangements of small technology-based firms: preliminary analysis of a case study in Brazil Hélio Lemes Costa Jr. Universidade Federal de São Carlos São Carlos – São Paulo – Brazil
  2. 2. Abstract <ul><li>This paper sets out to advance further in the classification and characterization for arrangements of small technology-based firms – such as clusters, technology parks and local production systems – based on the contribution of a case study made in a Brazilian small town, located in the South of Minas Gerais State, called Santa Rita do Sapucaí, where since the mid 1970's a fertile environment grew up for innovation in electronics, system and components. </li></ul>
  3. 3. Introduction <ul><li>As a contribution to the understanding of clusters of firms, a research was started in 2010 with a field survey, held in Santa Rita do Sapucaí, which is intended to cover all the production, research and institutional support actors, which will map the network of influence and social cooperation that exists at that pole, with the intent to provide managers with information for decision making, and guide the actions of scientific policymakers. </li></ul>
  4. 4. Aglomerations of Firms <ul><li>Renewed interest in policies and programs: </li></ul><ul><li>strengthening those forms of interaction; </li></ul><ul><li>considered innovation and competitiveness stimulators; </li></ul><ul><li>Systems Theory; </li></ul><ul><li>clustering of businesses favors the scope for innovation; </li></ul><ul><li>stimulate learning and innovation; </li></ul>
  5. 5. Aglomeration of Firms (cont.) <ul><li>central idea of innovation systems is based on interactions and relationships; </li></ul><ul><li>Innovation systems can be seen as carriers of knowledge and interactions as processes as creators of new knowledge. </li></ul>
  6. 6. Innovation Systems <ul><li>‘… innovation systems consist of organizations that, through its resources and activities have an impact on the speed and direction of innovative processes and in particular, the relationships established between these organizations’ (LUNDVALL, 1988). </li></ul>
  7. 7. The Study <ul><li>The Valley of Electronics: a success story in a very unlikely place. </li></ul><ul><li>Santa Rita do Sapucaí has 37,784 inhabitants; </li></ul><ul><li>economic activities based on agriculture and dairy farming of coffee; </li></ul><ul><li>population grew 73% in the last 50 years while the percentage of people living in rural areas decreased from 60.2% to 14.0% and; </li></ul><ul><li>currently 25% of the total population is working in companies in the electronics sector. </li></ul>
  8. 8. The School <ul><li>After consulting with professors from some teaching institutions, Sinhá Moreira decided to establish a technical school of electronics, a milestone in 1959 in Latin America, the first one. </li></ul>
  9. 9. The Valley Today <ul><li>141 companies in electronics field; </li></ul><ul><li>10,000 jobs; </li></ul><ul><li>1 billion dollars GDP; </li></ul><ul><li>65 companies exporting goods; </li></ul><ul><li>Interaction index of 1/15 (one product involves 15 companies in avg.) </li></ul>
  10. 10. Preliminary Results <ul><li>There is no federal or state public institutions of education and research involved in the birth and growth of the pole, which is very uncommon in Brazil and abroad; </li></ul><ul><li>There wasn’t post-graduate studies until 2002, when the cluster had already reached their maturity; </li></ul>
  11. 11. Preliminary Results <ul><li>There wasn’t a project for the LPA, or a government order, neither the business nor education institutions. The growth was spontaneous, till they made up note; </li></ul>
  12. 12. Preliminary Results <ul><li>There wasn’t governance on the LPA until the late 1980s, when entrepreneurs founded the Industrial Association of Santa Rita do Sapucai, which subsequently led to the Union of Industries Sector Eletroeletrônico of Valley of Electronics (SINDVEL), which today is the main articulator between the companies; </li></ul>
  13. 13. Preliminary Results <ul><li>Until now the relationship is much more based on friendship and trust between students and their teachers than to formal contracts, which can be observed in interviews with entrepreneurs who are based in incubators in the city. </li></ul>
  14. 14. Conclusions <ul><li>Valley of Electronics fits as an LPA, also go into the cluster configuration, can be called a local innovation system, but has many divergent points of the main examples that represent these classifications. </li></ul>
  15. 15. Conclusions <ul><li>Initially the individual and political will, thereafter, the informal social networks of collaboration and exchange of information, were the primary reason for the expressive results of an unlikely successful technological center. </li></ul>
  16. 16. Conclusions <ul><li>The research advances in order to map this network to establish its configuration, its density, cohesion and mutual trust between the actors of the pole. </li></ul>
  17. 17. Conclusions <ul><li>Other poles were analyzed from the same perspective, within the research program of GeTec – the Research Group in Technology Management at the Federal University of São Carlos </li></ul>
  18. 18. Conclusions <ul><li>Opening up possibilities for future comparisons between different poles, under the same systemic perspective and social networking to bring out patterns and templates for management of clusters of small technology-based companies, which has been recognized as relevant to the decentralization of innovative processes and regional development. </li></ul>
  19. 19. Questions? <ul><li>Contact: [email_address] </li></ul><ul><li>Twitter: @helionet </li></ul><ul><li>Tel.: 55 35 8854-4170 </li></ul><ul><li>GeTec – Grupo de Pesquisa em Gestão de Tecnologia </li></ul><ul><li>Universidade Federal de São Carlos </li></ul><ul><li>São Carlos – SP - Brazil </li></ul>

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