Determinants and Policies to Foster the Competitiveness of SME Clusters: Evidence from Latin America

This paper attempts to identify key determinants of competitiveness in SME clusters, with especial reference to Latin America. It takes the debate forward as its extended framework adds country- and firm-level determinants to the existing cluster-level factors of the 'collective efficiency' approach. Based on an enlarged analytical framework, policies recommendations to foster clusters' competitiveness are provided at different levels. Empirical evidence strongly suggests that joint action may not be enough for clusters to face new competitive pressures. This confirms the narrow scope of the 'collective efficiency' approach, and suggests that policy intervention in Latin America should go beyond the mere promotion of inter-firm linkages to foster the competitiveness of SME clusters.

Globalization of Production and the Competitiveness of Small and Medium-sized Enterprises in Asia and the Pacific: Trends and Prospects

The focus of this section is on the trends and prospects for the competitiveness of the region's SMEs, based on a review of the literature (as distinct from original research). In this context, the key dynamic shaping the prospects of Asia- Pacific SMEs relates to the globalization of production. This is changing the competitive environment for the region's SMEs in both international markets and at home. Therefore, at the core of the story is the need to understand the nature of globalization and its implications for the competitive performance of Asia-Pacific SMEs. From this perspective, small traditional firms serving only small local markets are not primary interest here, except insofar as they may evolve, or may be forced to evolve, into competitive enterprises in the above context.SMEs, Globalization, competitiveness, Asia, Pacific, trends

SMEs and virtual R&D teams: a motive channel for relationship between SMEs

In today?s dynamic marketplace, manufacturing companies are under strong pressure to introduce new products for long-term survival with their competitors. Nevertheless, every company cannot cope up progressively or immediately with the market requirements due to knowledge dynamics being experienced in the competitive milieu. Increased competition and reduced product life cycles put force upon companies to develop new products faster. In response to these pressing needs, there should be some new approach compatible in flexible circumstances. This paper presents a solution based on the popular Stage-Gate system, which is closely linked with virtual team approach. Virtual teams can provide a platform to advance the knowledge-base in a company and thus to reduce time-to-market. This article introduces conceptual product development architecture under a virtual team umbrella. The paper describes all the major aspects of new product development (NPD), NPD process and its relationship with virtual teams, Stage-Gate system finally presents a modified Stage-Gate system to cope up with the changing needs. It also provides the guidelines for the successful implementation of virtual teams in new product development

Working Paper 53 - Linkages between SMEs and Large Industries for Increased Markets and Trade: An African Perspective

This paper considers modalities and mechanisms through which SMEs could forgehorizontal links between themselves and vertical linkages with larger manufacturingand service industries for increased market access, enhanced investment flows,skills development and technological advancements. Such linkages would helpovercome the constraints that currently plague industry in African countries. Asthe global economy becomes more integrated and economic reforms and liberalizationtake root in Africa, indigenous SMEs will have to network and build alliances to beable to survive and compete effectively. There is strong evidence that formingalliances, clustering and networking help small firms to compete, grow and cooperatewith large firms. By working together, firms can gain the benefits of collectiveefficiency, enabling them to link with larger producers and break into national andglobal markets. The key to success seems to be a customer-oriented focus, amutually supportive approach, and a cumulative effort to ensure continuous, ratherthan discrete improvements. While SMEs in Africa remain largely underdevelopedand isolated, SMEs in Mauritius illustrate the various forms of linkages that can beforged specially clustering in the Export Processing Zone (EPZ). Vertical integrationin the textile industry in Mauritius also stands out as an interesting and successfulexample.

Public Policy and Small and Medium Enterprise Development

We review the policy arguments in favour of assisting SMEs in various areas of their operations. Our review suggests that many of the arguments put forward for subsidising SME activities (as distinct from some activities of firms regardless of size) are not economically justified. Nonetheless, it is widely acknowledged that SMEs suffer from disadvantage relative to large firms, principally in the areas of access to information and technology. We then study the possibilities offered by networks in helping SMEs deal with the disadvantages they experience. Our examination indicates that there are benefits that firms can derive from participating in networks. Further, because networks can assist firms overcome some of their inherent disadvantages, they can become less reliant on public assistance and more able to compete on an equal footing with larger firms once the initial impetus is provided for the formation of cooperative networks that can enable firms to compete more effectively.small and medium enterprises, public policy, government intervention, networks

National strategies for technology adoption in the industrial sector: Lessons of recent experience in the developing regions

human development, technology