as ripple effects downstream. The industrial enclaves (IE), on the other hand, are more numerous and
have a more relevant participation in the industrial product (6%) - however, most of them have few
material and financial resources to promote greater regional production integration, for the scope for
the exploitation of the externalities of the geographic proximity is small.
Industrial concentrations have an excluding nature. Less competitive (type C) companies are
“excluded” from more competitive economic spaces (prevalence of type A and B companies), which
poses difficulties for local strategies aimed at catching up with regional levels, for more focused
industrial demands, and for regional policies leading to the structuring of economic spaces of small
urban density.
Due to the spatial fragmentation of industrial production, the lack of coordination among
industrial and local development policies may create political and economic conflicts. Due to the
spatial fragmentation of industrial production, the lack of coordination among industrial and local
development policies may create political and economic conflicts. Both types of policies may have
their efficiency mitigated and positive synergies be left untapped. For instance:
Industrial policies intrinsically place emphasis on increased production efficiency and
competitiveness of companies, tending to focus on localities with greater positive externalities. A
regional development policy would indicate in which localities these externalities would be present,
that is to say, which SIAs would be most attractive for location of selected businesses (or industries).
On the other hand, if established SIAs experience strong diseconomies of agglomeration
(depletion of natural resources, expensive land rent, transport and pollution costs), it would be wise to
encourage investments in other agglomerations where such negative effects were not present. Again,
articulating industrial and regional policies would be needed to minimize negative effects typical of an
industrial mega-agglomeration. Which regions would be earmarked as potential investment recipients?
These could include some of the industrial enclaves or even one of the local industrial agglomerations
identified above.
A regional policy, in turn, must be aimed at a less unequal development within the country and
prioritize regions deprived of the advantages of growing spatial returns, namely, peripheral regions. In
order to develop such regions, regional development policies must create production and reproduction
conditions locally in line with the objectives of the industrial policies.
In this respect, but in an opposite manner, the regional policy must select, from among the firms
or industries given priority by the industrial policy, those that best suit regional particularities. As many
have noticed, the location of firms (or even a group of firms) in some regions may spark strong
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