Edited with Carlo Pietrobelli

This books investigates clusters and value chains in Latin America. Globalization imposes new conditions and rules for competitiveness in international markets. It poses the imperative to link up with other actors, both at the local and at the global level, and find new ways to interact and learn from the relationship. Can local markets and clusters represent a powerful alternative to global markets? Do transnational corporations and global buyers play a role and enhance or undermine local firms’ upgrading and learning? What opportunities do clustering and global value chains offer to SMEs in global markets?
Upgrading to Compete shows that both the local and the global dimensions matter at once. Clustering and collaborating with other local firms offers substantial advantages, while also participating in global value chains and interacting with foreign buyers and companies may enhance local firms’ capabilities and access to distant markets. However, what remarkably matters is the form of governance of value chains and clusters that importantly affects the upgrading process of local SMEs.
The book illustrates this with original empirical evidence from several clusters in Latin America. New case studies from Brazil, Chile, Mexico and Nicaragua are supplemented by desk studies on other experiences in the region.