How Latin American Firms Reconcile Corporate Strategy with Government’s Regional Innovation Strategy

Abstract

This article analyzes how a Latin American business manages its own business strategy with government’s cluster strategy. This article also takes a look at what kind of
incentives governments are using to increase collaboration in clusters. Why should a company respond to goals from a regional government to promote science and technology?
Is participating in clusters worth it for the business? How effective is the regional innovation cluster strategy anyway? This innovation strategy comes with a variety of
challenges. Indeed, on the micro level, it is difficult to get companies to work with government and coordinate strategies. On the macro level, government has trouble
determining which clusters will be sound investments for the country’s future. The crux of this overall analysis is at what point do these two strategies intersect and work
for both business and government. In particular, this paper will look at firms in Costa Rica and Argentina and how they operate within their clusters and work with governments’
goals.