7.02. Analysis of global commodity chain and small an medium enterprises (SMEs): A public policy perspective

Autores: F. Castañeda

Summary
There exists wide consensus about potential competitive advantages that can be derived by SMEs from participation in networking and clustering activities. The key factors in order to foster successful networks and clusters depend on institutional arrangements of each country. The highest standard reached by some countries and determined regions, is a result of active public policies, embedded in an institutional context, and in a combination with demographic factors and local capabilities.

The aim of this research project is to characterise the response of public policies in order to insert small and medium enterprises (SMEs) in an effective way within global commodity chains. Specifically, this research was divided in two parts:
i) SMEs and their relation with Cluster activities, international experience in SMEs, and the role of financing through named “second floor banking”.
ii) Global Commodity Chains and their impact in the economic development. Also it was analysed the global production networks and how it is realised in the services sectors in global city networks. Further, It was overviewed the experience of East Asian Countries as examples of industrial transition from apparel basic structure to more sophisticated export ways, and was compared with the former industrialisation Latin-American strategy.

Considering the unfavourable gap of Latin America in comparison with Asian countries (economic growth, penetration of technology, distribution of income, levels of productivity), it makes necessary that Latin America urgently updates its governance administrative structures, innovation systems, and adopt the cluster approach as sectoral focal point of SMEs in the local productive processes.

 

Keywords: global commodity chains, SMEs, innovation, industrial upgrade, cluster