Knowledge, Innovation and Agglomeration - regionalized multiple indicators and evidence from Brazil

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activities and above all with the existence of local production and innovation systems, as shown
by the Limeira, Ribeirao Preto, Sao Carlos, Jaù and Franca micro-regions, among others (Suzigan
et al., 2003).

3.2 Technology centers and R&D labs

The data and information collected on technological centers and R&D laboratories
included those belonging to the Senai system (some Senai units have labs that provide services to
firms); labs and centers linked to public institutions for support to the innovative activities of
firms, such as IPT (Instituto de Pesquisas Tecnologicas, subordinated to the Sao Paulo State
Department of Science, Technology & Economic Development); and private labs maintained by
members’ contributions and revenue from the sale of services.

We set out to identify the services typically provided to firms, emphasizing support for
innovative activities, and to find out whether these institutions provide services in areas such as
technological information, product development, management of production processes, technical
and technological assistance and consulting, testing, and laboratory trials. We also set out to
quantify these labs and technology centers by size, but many institutions refused to furnish such
information.

Here we collected data and information on labs and technology centers accredited by the
Ministry of Science & Technology (MCT) and the National Institute of Weights & Measures
(Inmetro), as well as other non-accredited institutions. Among those accredited by MCT are labs
and technology centers entitled to tax breaks under the provisions of the Information Technology
Act (Lei de Informatica) if they carry out R&D under agreement with firms that market IT and
automation-related goods or services. Those accredited by Inmetro include Senai’s calibration
and testing labs. Among the other labs and research centers, the highlights are those of Embrapa
(Empresa Brasileira de Pesquisa Agropecuaria, agronomy), IAC (Instituto Agronômico de
Campinas, agronomy), ITAL (Instituto de Tecnologia de Alimentos, food), and INPE (Instituto
Nacional de Pesquisas Espaciais, aerospace), especially their special technology labs and centers
for integration and testing (Table 3).

In this case there is clearly a high level of concentration in the Sao Paulo micro-region,
which has 45 labs and technology centers, or almost half the total in the state. It is worth noting
the large number (15) of MCT-accredited labs in the Campinas micro-region. As will be
discussed in Section 4, this infrastructure of labs and research centers relates to the regional
agglomeration of firms and education and research institutions that develop activities in the area
of information and communication technologies, especially the production of
telecommunications and IT equipment and software.

4. Clusters or local production & innovation systems

What drives the formation of clusters or local systems of production and innovation is the
existence in the locality or region of specialization knowledge that generates productive,
technical or technological capabilities specific to a given product or economic activity. Firms and
institutions are attracted because of the importance of geographic proximity to the transmission of
this tacit and specific knowledge. Once the process has begun, the system evolves mainly through
the emergence of new firms as spin-offs from existing local firms or institutions.

Previous work by the present authors²⁰ has dealt with these territorial agglomerations of
firms and institutions, which we have identified and mapped, as well as characterizing their

²⁰ See Suzigan et al. (2003; 2004).

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