Brazil, R&D and the role of clusters

6. Clusters in Brazil
Government focus
The Brazilian Government underlines the importance of APL(Arranjos Produtivos Locais) in its industrial
development, the economic development of Brazil, the fight against unemployment, in increasing
competitiveness and improving the trade balance. In this context, Brazil is reviewing its industrial policy
with a focus on increased competitiveness and in local productive arrangements (APL), covering mainly
micro and small enterprises in regional dimensions and realities.
Local Productive Arrangements (LPA'S) are sectorial concentrations of companies and institutions that
are related to each other in a geographical territory, specialized in certain sector or activities that can be
industrial or linked to special products or professions. Those arrangements benefit from an extended
network of relationships. The main point in those concentrations of companies is that the small and
medium sized enterprises are the main responsible for production and for the creation of new work
places.The LPA's are experiencing a considerable development in Brazil. There were 472 LPA's in Brazil
in 2004. In 2007, the number rose to 957, a 102% increase in the period. The LPA's from textile sector
are nearly all over the country, in 21 States. They are 70 and all of them get support from GTP APL, a
group of entities created by the Brazilian Government for that kind of arrangements.
In Norwegian context it is important to go beyond the large numbers and find relevant clusters in Brazil
related to the Nowegian version of the Cluster content. Brazil is creating clusters not only to innovate
and to increase R&D content in companies, but also to stimulate regional development and reduce
unemployment, through local production and education of the local work force.
Prof. Christian Ketels of Harvard Business School has analysed the Brazilian industrial position and made
the following competitiveness profile for 2010 (indicating 5 year changes), rating various factors
important for industrial development from significant advantages to significant disadvantages.
Dr Christian Ketels is a member of the Harvard Business School faculty at the Institute for Strategy and
Competitiveness, where he leads Prof. Michael E. Porter’s research team.
The study shows that with improvements in the social infrastructure and in the political institutions and
public administration, Brazil is already in a strong position and have an even stronger potential.
Therefore has Brazilian strategy on innovation, technology and business development also strong links
to consolidation and co-ordination of federal and state public bodies as well as human development in
schools and universities.
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