Skip to main content

Outsourcing and Diffusion of Knowledge in ICT Clusters: A Case Study

  • Conference paper
  • First Online:
Catching Up, Spillovers and Innovation Networks in a Schumpeterian Perspective

Abstract

The present scenario of globalization and rapid technology change has stimulated enterprises to build partnerships in research and development (R&D) activities. The development of R&D networks involves not only enterprises but also institutions such as federal scientific support agencies, universities and research centers. When these networks are located geographically in a region, they benefit from externalities related to proximity by forming clusters. The literature on proximity-related positive externalities enhances the role that partnerships occurring in clusters have in the diffusion of codified and tacit knowledge. In the particular case of the information and communication technology (ICT) industry, the development of clusters has been complemented and sometimes superseded by another activity associated with globalization: the outsourcing of ICT activities, especially in the area of software development. In Brazil, software clusters have been attracting large enterprises such as Motorola, IBM, HP, and Dell. However, although these enterprises may provide positive externalities through the diffusion of knowledge, their pressure on the local labor market may cause problems for local firms. This paper will discuss the way in which enterprises in the software sector deal with challenges related to the diffusion of knowledge in ICT clusters, using as an illustrative example the case of a software cluster located in Brazil. This cluster was originally created in the 1990s in Recife, in the north-east of Brazil, and has generated several positive impacts on local economic development. However, the growth of the cluster faces some challenges related to outsourcing and funding of local R&D. The discussion of this case study is based on in-depth (semi-structured and narrative) interviews carried out by the authors in 2007.

A previous version of this paper was presented in July 2008 at the ISS conference in Rio de Janeiro.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Alves, F.S.F. (2006). A Perspectivas econômicas de internacionalização das empresas fabricantes de software do Porto Digital do Recife. 134pp. Masters Thesis (Masters in Applied Economics, in the area of Foreign Trade) – Universidade Federal de Pernambuco.

    Google Scholar 

  • Amin, A., & Cohendet, P. (2005). Geographics of knowledge formation in firms. Industry and Innovation, 12(4), 465–486.

    Article  Google Scholar 

  • Bathelt, H., Malmberg, A., & Maskell, P. (2004). Clusters and knowledge: local buzz, global pipelines and the process of knowledge creation. Progress in Human Geography, 28(1), 31–56.

    Article  Google Scholar 

  • Bercovich, N., & Suassuna, M. (2008). El cluster de TI en Recife (Pernambuco, Brasil): Porto Digital y modalidades de inserción de grandes empresas. Informe final para el proyecto Desafios e Oportunidades para a Indústria de Software e Serviços na Argentina e no Brasil, IE/UFRJ/IDRC/FLACSO, Rio de Janeiro, May 2008.

    Google Scholar 

  • Breschi, S., & Malerba, F. (2001). The geography of innovation and economic clustering: some introductory notes. Industrial and Corporate Change, 10(4), 817–833.

    Google Scholar 

  • Cassiolato, J. E., Britto, J., Guimarães, V., & Stallivieri, F. (2007). Brazilian software industry: a general view of its structure, specialization and competence building processes. Rio de Janeiro: Redesist-IE/UFRJ. Research Paper 14/07 – Brics Project.

    Google Scholar 

  • Courlet, C., & Pecqueur, B. (1991). Systèmes Locaux d’Entreprises et Externalités: Un Essai de Typologie. Révue d’Économie Regionale et Urbaine, 3–4, 391–406.

    Google Scholar 

  • Davenport, S. (2005). Exploring the role of proximity in SME knowledge-aquisition. Research Policy, 34(5), 683–701.

    Article  Google Scholar 

  • Flick, U. (2009). Introdução à pesquisa qualitativa. Tradução: Joice Elias Costa (3rd ed.). Porto Alegre: Artmed.

    Google Scholar 

  • Hasenclever, L., & Zissimos, I. R. M. (2006). A evolução das configurações produtivas locais no Brasil: uma revisão da literatura. Revista de Estudos Econômicos, 36, 407–433.

    Google Scholar 

  • Hurmelinna-Laukkanen, P., & Puumalainen, K. (2007). Nature and dynamics of appropriability: strategies for appropriating returns on innovation. R&D Management, 37(2), 95–112.

    Article  Google Scholar 

  • Instituto Brasileiro de Geografia e Estatística – IBGE (2009). O Setor de Tecnologia da Informação e da Comunicação no Brasil 2003–2006. Rio de Janeiro: IBGE.

    Google Scholar 

  • Kaufmann, A., Lehner, P., & Todtling, F. (2003). Effects of Internet on the spatial structure of innovation networks. Information Economics and Policy, 15, 402–424.

    Article  Google Scholar 

  • Lemarié, S., Mangematin, V., & Torre, A. (2001). Is the creation and development of biotech SMEs localised? Conclusions drawn from the French case. Small Business Economics, 17(1), 61–76.

    Article  Google Scholar 

  • Malmberg, A., & Maskell, P. (2002). The elusive concept of localization economies: towards a knowledge-based theory of spatial clustering. Environment and Planning A, 34(3), 429–449.

    Article  Google Scholar 

  • Marques, J., & Leite, C. (2007). Clusters como novas possibilidades de regeneração urbana e de reestruturação produtiva: o caso do Porto Digital, Recife. São Paulo: Universidade Mackenzie.

    Google Scholar 

  • Nicholson, B., & Sahay, S. (2004). Embedded knowledge and offshore software development. Information and Organization, 14(4), 329–365.

    Article  Google Scholar 

  • Oliveira, S. C. (2008). Sobre a Intoração Universidade-Empresa no Desenvolvimento de Software: Um Estudo de Caso no Recife. PhD Thesis, (PhD in Economics) – Institute of Economics, Federal University of Rio de Janeiro.

    Google Scholar 

  • Pentland, B. T., & Feldman, M. S. (2005). Organizational routines as a unit of analysis. Industrial and Corporate Change, 14(5), 793–815.

    Article  Google Scholar 

  • Walsham, G. (2003). Knowledge management: the benefits and limitations of computer systems. European Management Journal, 19, 599–608.

    Article  Google Scholar 

Download references

Acknowledgments

The authors wish to thank Néstor Bercovich and an anonymous referee for their comments on an earlier version of this paper. The authors wish to thank IDRC and SOFTEX for their support.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Renata Lèbre La Rovere .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2011 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

La Rovere, R.L., Rodrigues, R.F. (2011). Outsourcing and Diffusion of Knowledge in ICT Clusters: A Case Study. In: Pyka, A., Derengowski Fonseca, M. (eds) Catching Up, Spillovers and Innovation Networks in a Schumpeterian Perspective. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-15886-5_13

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-15886-5_13

  • Published:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-15885-8

  • Online ISBN: 978-3-642-15886-5

  • eBook Packages: Business and EconomicsEconomics and Finance (R0)

Publish with us

Policies and ethics