1. Local production systems transforming the economy of Paraná State - Brazil Mr. Allan Marcelo de Campos Costa CEO Sebrae/PR - Small Business Support Service Cape Town, October, 2008.

2. Syllabus The State of Parana The search for sustainability based on clusters development in Paraná A vision for the future Lessons Learned The State of Parana The search for sustainability based on clusters development in Paraná A vision for the future Lessons Learned

4. Paraná Icons: State of Paraná Icons: Iguassu

5. Paraná’s icons:

7. Paraná Icons: State of Paraná Icons: Rain forest and seaside

11. State ofParaná Icons: State of Paraná Icons: Curitiba

15. Why clusters strategy? Great raw material producer and exporter... But... Value chain is interrupted in low levels of added value...... low capacity of wealth and jobs generation in the territory! Great raw material producer and exporter... But... Value chain is interrupted in low levels of added value...... low capacity of wealth and jobs generation in the territory!

16. Parana State clusters: strategical view to be “buyed” Marketing Price Attributes Today

17. Parana State clusters: strategical view to be “buyed” Marketing Price Target Attributes

18. Basic premises Local Production Systems have limits as a development promotion strategy It is not possible to CREATE a LPS. It is possible to induce its development where basic conditions are already present “One size does not fit all” The identification of the potential LPSs is a critical factor in order to implement effective policies Local Production Systems have limits as a development promotion strategy It is not possible to CREATE a LPS. It is possible to induce its development where basic conditions are already present “One size does not fit all” The identification of the potential LPSs is a critical factor in order to implement effective policies

19. “global” consumer trends: Enjoy vs. “to have” Health “Lifestyle” Cultural “roots” Conscious consumption “global” consumer

20. ...many of the 111 clusters already identified in Paraná State can take advantage of these trends...

21. Health: Health: from “one day stop” place to cluster of health & leisure Phitotherapics beauty and health products; Leisure & Tourism (Iguassu falls and surroundings); Organic food and products; Health treatments equipments; “Brazil and Paraná makes you younger” Phitotherapics beauty and health products; Leisure & Tourism (Iguassu falls and surroundings); Organic food and products; Health treatments equipments; “Brazil and Paraná makes you younger”

22. “Life style”: from “clothes outsourced factories” to fashion development Young, Funny, Happy: casual wear, surfwear, beachwear; Sophistication by “simplicity”; Naturally Ecological; Accessories: handcraft with seeds, exotics skins (Ex.: fish skin). “Paraná as a fashion developer ” Young, Funny, Happy: casual wear, surfwear, beachwear; Sophistication by “simplicity”; Naturally Ecological; Accessories: handcraft with seeds, exotics skins (Ex.: fish skin). “Paraná as a fashion developer ”

23. Cultural roots: from “no identity” to a “patchwork” of cultures. Ethnical diversity; Local cultural roots: guarani indians culture; Handcraft; Ethnical tourism; “Harmonious diversity” Ethnical diversity; Local cultural roots: guarani indians culture; Handcraft; Ethnical tourism; “Harmonious diversity”

24. Conscious consumption: Conscious consumption: from “wood exporter” to “sustainable activities” Paraná is Naturally ecological; “Fair trade” Social responsability; “Products made with social conscience have a different value perception” Paraná is Naturally ecological; “Fair trade” Social responsability; “Products made with social conscience have a different value perception”

25. Enjoy versus “to have”: to be “workaholic” isn’t “cool” anymore Hospitality Enviromental diversity; “radical sports” (Ex.: rain forest); “Slow food” “Paraná NO Stress” Hospitality Enviromental diversity; “radical sports” (Ex.: rain forest); “Slow food” “Paraná NO Stress”

26. “Intangible”assets Productives competences Confidencerelationships Sustainabledevelopment

27. Our great Challenge: How to develop “social capital” in short term, in order to build sectorial sinergy?

28. Can you help us to answer?

29. Lessons Learned The public sector must coordinate the actions in order to aggregate the actors involved A consistent methodological approach in the identification of LPSs is essential Virtuous interaction between companies and their territory must be developed It’s needed to work with the whole chain value and not just with one activity Only a shared vision about the future of the cluster can generate consciousness enough to move forward Development agencies must be “one step ahead” in terms of clusters trends and vision The public sector must coordinate the actions in order to aggregate the actors involved A consistent methodological approach in the identification of LPSs is essential Virtuous interaction between companies and their territory must be developed It’s needed to work with the whole chain value and not just with one activity Only a shared vision about the future of the cluster can generate consciousness enough to move forward Development agencies must be “one step ahead” in terms of clusters trends and vision

30. Sustainable competitivity Cooperation Innovation Colective learning Knowledge

31. ...final remarks... “... To create our own history is not a question of time; the capacity to cooperate, instead of the determinism of time, is what makes our history different”

32. ...about the lecturer: Allan Marcelo de Campos Costa e-mail: acosta@pr.sebrae.com.br Allan Marcelo de Campos Costa e-mail: acosta@pr.sebrae.com.br