Abstract
This article analyzes the causes for the long-term success of the Barcelona (Spain) and São Paulo (Brazil) automobile industry clusters. Comparative evidence suggests that both clusters emerged in the early twentieth century through the formation of Marshallian external economies. Nevertheless, neither Barcelona nor São Paulo reached mass automobile production before 1950. The consolidation of the clusters required the adoption of strategic industrial policy during the golden age of capitalism. This policy succeeded in encouraging a few hub firms to undertake mass production by using domestic parts. The strategic policy also favored these leading corporations transferring their technical, organizational, and distribution capabilities, which in turn amplified the advantages of the clusters. Local institutions did not make a significant contribution.
Highlights
This article analyzes the causes for the long-term success of the Barcelona (Spain) and São Paulo (Brazil) automobile industry clusters
It is no accident that in 1974 São Paulo accounted for more than 90 percent of all vehicles manufactured in Brazil, while Barcelona was responsible for almost 50 percent of those produced in Spain
We explore four possible factors that explain the success attained in both regions: (1) the presence of external economies, (2) the capacities provided by hub companies, (3) the adoption of national government strategic industrial policies, and (4) the emergence of adequate local institutions
Summary
Despite the scarce development experienced, dozens of companies produced parts and components from the end of the 1930s New tire manufacturers, such as Goodyear (1938) and Dunlop (1939), set up in São Paulo and the Cia. Americana Industrial de Omnibus tried to promote the construction of buses.. With Notice 311 of April 1953, Vargas banned the importing of complete vehicles, only authorizing the entry of CKD kits if they arrived without the parts specified in Notice 288.96 Before the end of the year, Willys-Overland and Volkswagen (VW) had established assembly lines in São Paulo, while Mercedes-Benz installed its line in Rio de Janeiro.. The relative weight of the three leading corporations in the São Paulo cluster was not as overwhelming as in Barcelona, the significant proportion suggests that the big companies of the industry provided the district with crucial capabilities for its final take-off (Table 5).
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