Permanent Work Group for Local Productive Arrangements –

“GTP APL”

Brazilian Policy for APL

EU-Brazil Cluster and Business Matchmaking Event

ECCP and LCBA

Lyon, 29th of November, 2016

General Coordination of APL Ministry of Industry, Foreign Trade and Services

What is an APL

APL in Brazil

Initial Policies

GTP APL

State Nucleus

Main Actions

Results

Challenges

"Brasil Mais Produtivo”

SUMMARY

• Local Productive Arrangements (APL) are agglomerations of companies, located in the same territory, possessing specialization and maintain interaction, coordination, cooperation and learning among themselves and with other local institutions such as government, associations, banks, credit institutions, teaching and research

• Broader view, but they are also called productive systems or clusters

WHAT IS AN APL

APL IN BRAZIL

677 APL in Brazil (2015)

267 APLs prioritized by GTP APL

395.141 Companies

3.820.409 Employees

Promotion of local governance

Encouraging cooperation

Increasing competitiveness

Valorization and Conservation of territorial identities and the environment:

Business Management

Incentives to innovation

Market promotion

MAIN DEMANDS

INITIAL POLICIES

Before 2000: technical visits to Europe and study of methodology

2000: Project Sebrae, BID y Câmara de Comércio da Lombardía – PROMOS for developing 4 industrial districts in Brazil

2000: Projeto Competir (Brazil-Germany) actions on productive chains

2004: creation of GTP APL

Assumptions

• Recognition that policies to promote small and medium enterprises are more effective when targeted to groups of companies.

• The local is seen as a guiding principle of economic and social development - induction of local development.

• Need for decentralization of production, employment generation and income and stimulate exports.

KEY POINTS FOR BRAZILIAN POLICY

Adoção de ações integradas de políticas públicas

focadas para Arranjos Produtivos Locais.

Adoption of integrated public policy actions

focused for Local Production Arrangements.

GTP APL

Rescue of development policies

Inclusion on the political agenda

Prioritization of activities, regions and actors generally excluded

Intensification of articulations

35 Institutions

27 State Nucleus

MDIC as Executive

Secretariat

GTP APL Institutions

ROLE OF STATE NUCLEUS

Promoting Awareness Meeting in clusters selected in the State to induce the preparation of Production Development Plans.

Monitoring the development of PDP.

Receive and consider the PDP of the selected clusters.

Promote evaluation meetings of PDP at the state level.

Articulate state solutions to the demands of the selected clusters.

Presenting GTP APL demands that can be solved at the federal level.

Track, monitor and evaluate the implementation of the actions of PD.

Report results GTP APL.

POLICY GUIDELINES

• includes actions and instruments aimed at intensification of the productive space and innovation, competitiveness and joint production and commercialization, incorporating a systemic view in productive space

Fostering systemic

interaction

• aims to mobilize the capacity to acquire and use knowledge and innovations to add quality and value to goods and services produced, promoting grounded, cohesive and sustainable development.

Promoting the strengthening of productive and

innovative capabilities

POLICY GUIDELINES

• refers to a clear direction of the institutions for the specificities and potentialities of the places and their productive and institutional environment, a new insight into the development, which seeks to integrate the priorities of national development, regional , state and local within a long-term perspective.

Cohesion and coherence in

relation to local

development

• instruments aimed at building a strategic / competitive analysis of each space should be made available, the use of mechanisms to support multi-level governance, integration with structures aimed at providing a local social infrastructure and the focus on eco-efficiency of enterprises organized in clusters

Economic, political, social

and environmental

MAIN GOALS OF APL POLICY

Reduce the intra and inter-regional inequalities in the territories of APLs, promoting, based on an inclusive and

environmentally sustainable development, (i) the productive inclusion of economic and social actors through access to public

services and the consolidation of their supply chains ; and (ii) increasing the

competitiveness of Brazilian companies through innovative

learning.

GTP APL – MAIN ACTIONS

GTP APL - 10 years

Brazilian Observatory of APLs (Taxonomy and Indicators)

Creative Economy

Partnership with Industry (“Brasil Mais Produtivo")

Survey of the existing APLs

National Conference and Regional Workshops

Territorialization of Industrial Policy - Seminars

Productive Integration - MERCOSUR

GTP New Fronts - Regrouping

Integration Routes Program

10 YEARS OF GTP APL: RESULTS

Mobilization of actors at different levels: federal,

state and local.

Collaboration among federal entities:

decentralization of planning and action.

Promoting the role of entrepreneurs and

institutions present in clusters: "I'm an APL".

Recognition of the importance of participation and organization of

local actors: emphasis on collective projects.

Institutional integration: GTP APL and NEs.

Creation and customization of tools

and actions.

POLICIES CHALLENGES

APL as a State Policy

Project Driven Group/More

practical actions

Decentralize the policy

Work in multiple scale

Attract private sector: rapid gain X long term goals

Coordination of policies

POLICIES CHALLENGES

Professionalization of Governance

Supplier Development /

Expansion of production capacity;

Technological Development and

Innovation

Market Access, Business Intelligence

Productive Integration

Improvement of policies to increase

the competitiveness of APLs

Apoio: Realização:

Brasil Mais Produtivo

Economic Competitiveness

Productivity

Focus at the Company

Horizontal Policies

Offer a national strategy for increasing productivity

Program Bases

Intervention inside the company;

Definition of cost from the analysis of de Investment Return and proved results (pilots);

Indicators and goals must me measurable at the production floor;

Design of the policy and its criteria's after technical analysis that priories the optimization of applied tools and methodologies;

Methodology must be designed to be implemented in large scale with patronized quality.

Brasil Mais Produtivo

The "Brasil Mais Produtivo” was designed in partnership with SDCI/MDIC, CNI/ SENAI, Apex-Brasil e ABDI, using the methodology "Indústria + Produtiva”, from CNI/SENAI.

Program of consultancy, with quick lean manufacturing interventions , low cost, that aims to expressive productivity gains in SME.

Allies the increase of productivity in Brazilian companies and local development.

First phase: 3.000 companies; 77 APLs; from Food and Beverages, Metal Mechanics; Fashion; Furniture Industry Sectors.

Brasil Mais Produtivo

Parcial Result.:

Launched in April 2016; 3.407 companies applied;

More than 900 companies being attended in all states ;

More than 400 trained consulters;

Results of the first completed sample: medium increase

of 56,5% of productivity.

Brasil Mais Produtivo

Expansion of "Brasil Mais Produtivo"

Lean Manufacturing

Energy Effeciency

Industry 4.0

Brasil Mais Produtivo

Expansion of "Brasil Mais Produtivo"

Thank you!

Gabriela Maretto Figueiredo gabriela.maretto@mdic.gov.br

General Coordinator of APL

Executive Secretary of GTP APL

Lyon, 29th of November, 2016