1. CLUSTERS IN MENDOZA MINISTRY OF PRODUCTION, TECHNOLOGY AND INNOVATION Mendoza Government Argentina

2. Presentation Summary 1.General Information about Mendoza 2.Productive Mendoza Program 3.Goals of the Clusters Promotion Subprogram 4.Clusters Types ( agri-food/and industrial) 5.Cases: Wine Cluster / Oil Industry Cluster

3. Ventajas comparativas de Mendoza General Information about Mendoza Population: 1.693.261 inhabitants Surface:148.827 Km2 Climate: Mean Minimum Temperature: 15,8° C Mean: 18,5º C Mean Maximum: 21,5º C Relative Humidity: 50% Average number of sunny days per year: 250 days Climate: Warm and arid Gross Geographic Product (GGP) per capita: U$S 5.857 (año 2007) Average GGP in 5 years: 12,12% Growth in 2007: 8, 8% Expected in 2008: 7%

4. Mendoza Gross Geographic Product 2007

5. Productive Mendoza Technical- professional Training FinancingInfrastructure

6. Productive Mendoza Program CLUSTERS Promotion Subprogram Goals Increase valuable chains´ competitiveness. Begin a changing process with local clusters´ firms. Create a shared vision of future through joined actions.

7. IRCs Competitiveness Reinforcement Initiatives (Financed by BID and Mendoza Government ) IRCs Competitiveness Reinforcement Initiatives (Financed by BID and Mendoza Government ) Technical Management Unit Strategic Committee Function: It assesses and declares IRCs (Competitiveness Reinforcement Initiatives) Eligible or non-eligible Minister of Production, Technology and Innovation Secretary of Tourism Undersecretary for Industrial, Technological and Services Promotion Undersecretary for Agri-food Programming and Quality Management Strategic Committee Function: It assesses and declares IRCs (Competitiveness Reinforcement Initiatives) Eligible or non-eligible Minister of Production, Technology and Innovation Secretary of Tourism Undersecretary for Industrial, Technological and Services Promotion Undersecretary for Agri-food Programming and Quality Management Management Group Function: It supports the firms of each Cluster in the making of the IRCs (Competitiveness Reinforcement Initiatives) Subprogram Manager Management Assistant Clusters Specialists Market Specialists Management Group Function: It supports the firms of each Cluster in the making of the IRCs (Competitiveness Reinforcement Initiatives) Subprogram Manager Management Assistant Clusters Specialists Market Specialists

8. AGRI-FOOD CLUSTERS WINE OLIVE OIL FRESH FRUIT FRESH VEGETABLES PRUNE

9. Wine Cluster Industry Description in Argentina 8th grape producer in the world 5th wine elaborator in the world, with 15.5 m hl. 2,6% of world surface of vineyards, with 210.000 ha. 950 wineries, which amount to 20% of the total of industries in Mendoza and San Juan. 93% of the vines are located in Mendoza and San Juan. This industry provides 50% of agricultural GDP in Mendoza and San Juan 2,5% of Argentine exports in the Industrial and Agricultural-livestock Manufactures sector.

10. US$ 1.300 m a year. (65% from domestic market) 22.000 producers and 45.000 workers employed in primary production. Investment in this industry over the last 5 years amounts to US$1.551m 38% is from National capital and the main investors have been Chile, USA and France. Wine Cluster Industry Description in Argentina

11. . Mendoza is part of the eight great world capitals of the Wine World together with: Bilbao-Rioja, Burdeos, Cape Town, Florence, Melbourne, Porto San Francisco-Napa Valley Cluster Vitivinícola Descripción del Sector

12. Wine Cluster IMPLEMENTED TECHNOLOGY

13. 1- Process of reform and seizing of emergent opportunities 2- Provincial development strategies (creation of specific organizations for industrial development support) 3- Development of local systems for local innovation. Wine Cluster Factors that gave way to the evolution ´ wine cluster

14. Wine Cluster Local systems for innovation Network of specialized suppliers The existence of a basis of industries that assist wine industry Technological knowledge These were the bases that enabled these networks of suppliers to evolve together with the industry.

15. Wine Cluster Evolution Technical change process: Wine Presses Label suppliers Metalworking industry: sorting tables, de-stemming equipment, crushers, special pumps, packing lines, fractioning and bottling lines, transporting lines, etc.

16. Wine Cluster Research and Technological Development

17. Program for Integration of Wine Clusters in the Andean zone – Project (PITEC) Project Creation, transfer and dissemination of knowledge to strengthen Argentinian Vitiviniculture – Project PAE Vineyard Management System to optimize quality and yielding. Development of Grape Quality Standard We plan to work in: technological and market information, Centers for Viticulture, Traceability and Quality Development We are planning to create, transfer and spread scientific and technological knowledge. Development of Vineyard management technology and quality standards to guarantee high quality grapes intended for wine elaboration. Wine Cluster Viticulture and Oenology

18. Technological improvements for the development in primary production for the Concentrated Grape Juice industry Training for elaboration of Concentrated Grape Juice We are working on technology transfer in the primary production of Concentrated Grape Juice. 1000 professionals in wineries of Mendoza and San Juan and 1000 workers will be trained on the processes and care in the elaboration of Concentrated Grape Juice. 500 trained wineries Wine Cluster Concentrated Grape Juice

19. Wine Cluster Challenges  Increasing investment in wineries to improve the quality of wine and facilities.  Incorporating good practices in crops to improve the quality of grapes  Promoting vertical and horizontal integration of the whole productive chain.  La promoción de la integración vertical y horizontal de toda la cadena productiva.  Implementing new technologies.  International negotiation with other countries and blocks  Our country’s identity and brand.

20. INDUSTRIAL CLUSTERS GRAPHIC SERVICES OIL INDUSTRY SERVICES TEXTILE CLOTHING AERONAUTICAL METALWORKING

21. Oil Industry Cluster Industry Description Oil Services employ nearly 5.800 people. 125 companies, 73% of them linked to the upstream and the remaining 27% to the downstream. 65% of the firms that belong to the oil industry are Small Business 6% in terms of sales. Several components of the metalworking industry can be considered as part of the Power Services Cluster. This industry employs nearly 6.200 people and is comprised by 700 firms.

22. Oil Industry Cluster Sector

23. Oil Industry Cluster Description The companies in the industry have a shared history in state-owned YPF and State Gas. Vertical integration of all services and products associated to all the links of the oil and gas chain. Repsol-YPF keeps leading oil export in Mendoza Petrobrás is another company working

24. Oil Industry Cluster This industry presents diversity in offering Specific Products and Services for the Oil Industry Products and Services for the Oil Industry applied to other Markets Products and Services for Industry

25. Oil Industry Cluster Development and Research

26. Oil Industry Cluster Public Sector: Alternative Sources of Energ y The trend towards the use of renewable energy is fostering, from the National Government, Science and Technology Bodies, Universities and companies, the development of alternative fuel. BIODIESEL AEOLIAN ENERGY IMPSA is venturing into the research and development of new products for this field and particularly in wind power generators. Aeolian energy

27. Participating in this event will enable a new vision of the commercial potential of the Latin American Market translated into business flow Participation in Río Oil and Gas Fair Energy Sustainable House Furnishing of a rural house with alternative measures for energy production for its assessment Solar Heaters Manufacture of water heaters for sale. Production of micro-seaweed to extract oils and obtain biofuel. Biofuel

28. Oil Industry Cluster Opportunities Increasing international demand for oil and energy services Growing domestic demand for energy Growing interest in renewable energy and alternative fuels Potential synergies between power services and farming industry (biodiesel) The present world context

29. Mendoza Government Argentina Minister of Production, Technology and Innovation Guillermo Migliozzi www.mendoza.gov.ar Contacto: gmigliozzi@mendoza.gov.ar