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Globalisation Team
Reshaping globalisation for the 21st century
Clusters in the Global Economy
The Interaction of Global and Local Governance: Implications for Industrial Upgrading
For over a decade, IDS has been a leader in research on clusters in developing countries. Initially, during the 1990s, this research was driven by the hypothesis that competitiveness depends on the quality of relationships in the clusters. The results of this work can be found on our Clusters and Industrial Development webpage.
More recent research has concentrated on the interaction of local and global relationships. This work is driven by the following question: what is the scope for local upgrading strategies where clusters are inserted in global value chains. For the results of this work see below.
While the debate on industrial clusters and local innovation systems is mainly concerned with local linkages, this project examines the global linkages and how they affect local relationships. Examining clusters through this new lens transforms the understanding of local upgrading strategies and options.
A key question of the project is who sets the parameters for local producers. These producers do not just export into an anonymous global market; often they feed into value chains which are governed by powerful global players. They set and/or enforce the parameters under which other enterprises in the chain operate. Other parameters are set from outside the chain, notably the new quality and labour standards. In this project we ask whether and how they affect different upgrading strategies.
- IDS key contact: Hubert Schmitz
- Project dates: January 1999 - July 2002
- Project status: Closed
- Funder: Volkswagen Foundation
Researchers
- Hubert Schmitz
- John Humphrey
- Lizbeth Navas-Aleman
- Dirk Messner, German Development Institute
- Jörg Meyer-Stamer, mesopartners
- Frank Waltring, ex INEF
- Khalid Nadvi, Institute for Development Policy and Management
- Luiza Bazan, Federation of Industries of Rio Grande do Sul, Brazil
- Afonso Fleury, University of São Paulo, Brazil
- Raquel Gomez, Massachusetts Institute of Technology
- Gerhard Halder, University of Stuttgart, Germany
- Marcia de Paula Leite, University of Campinas, Brazil
- Claudio Maggi, Fundacion Chile
- Ruy Quadros, University of Campinas
- Roberta Rabellotti, University of Piemonte Orientale, Novara, Italy
- Silene Seibel, Universidade do Estado de Santa Catarina (UDESC)
Partner Organisations
Selected Outputs
- Schmitz, H. (2004) Local Enterprises in the Global Economy: Issues of Governance and Upgrading, Cheltenham: Edward Elgar Publishing
- Schmitz, H. (2003) 'Clusters and Chains: How Interfirm Organization Influences Industrial Upgrading' in Cassiolato, J., Lastres, H. and Maciel, M. (eds), Systems of Innovation and Development, Cheltenham: Edward Elgar Publishing
- Navas-Alemán, L. and Bazan, L. (2003) 'Local Implementation of Quality, Labour and Environmental Standards: Opportunities for Upgrading in the Footwear Industry', SEED Working Paper Series on Upgrading in Small Enterprise Clusters and Global Value Chain 45, Geneva: ILO
- Nadvi, K. and Wältring, F. (2002) 'Making Sense of Global Standards', INEF Report 58, Duisburg: Institut für Entwicklung und Frieden
- de Paula Leite, M. (2002) 'The Struggle to Develop Regional Industry Policy: The Role of the Plastics and Auto Sectors in the Regional Chamber of ABC, São Paulo', IDS Working Paper 154, Brighton: IDS
- Nadvi, K. and Halder, G. (2002) 'Local Clusters in Global Value Chains: Exploring Dynamic Linkages Between Germany and Pakistan', IDS Working Paper 152, Brighton: IDS
- Quadros, R. (2002) 'Global Quality Standards, Chain Governance and the Technological Upgrading of Brazilian Auto-Components Producers', IDS Working Paper 156, Brighton: IDS
- Messner, D. (2002) 'The Concept of the 'World Economic Triangle': Global Governance Patterns and Options for Regions', IDS Working Paper 173, Brighton: IDS
- Schmitz, H. (2001) 'Local Governance and Conflict Management: Reflections on a Brazilian Cluster', Oxford and New York: Oxford University Press
- Nadvi, K. and Kazmi, S. (2001) 'Global Standards and Local Responses: Case Study from Pakistan' , Brighton: IDS
- Bazan, L. and Navas-Aleman, L. (2001) 'Comparing Chain Governance and Upgrading Patterns in the Sinos Valley, Brazil' , Brighton: IDS
- Humphrey, J. and Schmitz, H. (2001) 'Developing Country Firms in the World Economy: Governance and Upgrading in Global Value Chains', INEF Report 61, Duisburg: Institut für Entwicklung und Frieden
- Halder, G. (2001) 'The Effect of Globalisation on the Local Production and Knowledge Systems: The Surgical Instrument Cluster of Tuttlingen, Germany' , Brighton: IDS
- Rabellotti, R. (2001) 'The Effect of Globalisation on Industrial Districts in Italy: The Case of Brenta', IDS Working Paper 144, Brighton: IDS
- Humphrey, J. and Schmitz, H. (2001) 'Governance in Global Value Chains', IDS Bulletin 32.3:19-23
- Meyer-Stamer, J., Maggi, C. and Seibel. S. (2001) 'Improving Upon Nature: Creating Competitive Advantage in Ceramic Tile Clusters in Italy, Spain and Brazil', INEF Report 54, Duisburg: Institut für Entwicklung und Frieden
- Humphrey, J. and Schmitz, H. (2000) 'Governance and Upgrading: Linking Industrial Cluster and Global Value Chain Research', IDS Working Paper 120, Brighton: IDS
- Messner, D. and Meyer-Stamer, J. (2000) 'Governance and Networks. Tools to Study the Dynamics of Clusters and Global Value Chains', Paper prepared for IDS/INEF project 'The Impact of Global and Local Governance'

