Business linkages between large buyers and small local suppliers: implications for public policy and development
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Abstract
This article analyzes the conditions under which public policies promoting business linkages (BL) between large and small/medium enterprises act, assuming that the state has a fundamental role stimulating them, and those linkages generate regional development and reduce social inequalities. The empirical research, qualitative in nature, was designed to analyze actions and programs promoting BL developed in Brazil, as well as the institutions involved in it. It also verifies the benefits of those actions and identifies opportunities for public sector intervention. The results show that public policies can be created so as to complement those related to promoting development directed toward education, competence building and technology transfer, and, more generally, to those promoting favorable environment for business and foreign direct investment attraction. The paper also suggests future research, including governance systems involving the relationship between companies and their connection with the public sector.
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