Industrial and technology policy for regional development: Promoting clusters in Brazil

Small and medium-sized enterprises (SMEs) have been attracting increasing attention from analysts of contemporary capitalism as their role changed with the crisis of ‘fordism’. In the new techno-economic paradigm, SMEs that are clustered in a region and are inserted in market niches have more chances to meet the requirements of globalization. However, most institutions and policy instruments that operate industrial and technology policy are still formatted to meet the requirements of the ‘fordist’ economy. Therefore, policy-makers today face the challenge to design effective industrial and technology policies to support SMEs. The aim of this paper is to discuss possibilities of alternative industrial and technology policies directed at SMEs that are located in industrial districts or clusters, so that these firms may assert their role in the economic development of Brazil.