The ability to translate advanced technology efficiently into manufacturing capacity is crucial under the new paradigm of industrialization and competition in the world economy. The competitive advantage of countries and regions depends on strategies of innovation and organization of production that allow for rapid adaptation to changes in the competitive environment. A key question in this process is whether regionally focused production systems can be used by developing countries in acquiring advanced technologies. This project will test the hypothesis that the creation of new industries and industrial sectors is influenced not only by technological change and organizational innovation, but principally by place based politics and institutional strategies. The research will focus on three emerging high-technology agglomerations in Sao Paulo State in Brazil. It will attempt to establish the relationship between high-technology specialization and government sponsored scientific efforts to generate efficient technology search procedures for industrial application. Data will come from censuses, industrial surveys, and interviews with individual firms. Data will be analyzed with statistical and cartographic techniques to determine whether the hypothesized relationship between regional specialization and institutional factors is valid. This research should provide a framework for addressing the specific conditions of semi-industrialized countries regarding their innovativeness and competitiveness, the role of geographically specific factors in this process, and whether regionally focused production systems promote advanced technological capacity for developing countries. These questions are important in determining whether the advent of a global economy based on technological competition poses obstacles or opportunities for industrial development in less developed countries.
