LED Toolkit

Table 2: Cluster Promotion: The Role of Different Actors
Who?	What?	How?
Central government	Encourage inter-firm relationships	Value-added tax rather than cumulative sales tax Realistic regulatory framework: licensing, labour, taxation, safety, environment (no incentives for informality or semi-formality) Transparent proceedings of public administration Transparent and efficient foreign trade procedures
	Direct support firms: technology	Finance decentral activities on a competitive basis Create a decentralised, efficient structure in areas such as MSTQ and technology extension
	Direct support to firms: finance	Finance decentral activities on a competitive basis
Regional government	Encourage inter-firm relationships	Public purchasing policy geared at groups / consortia of SME
	Direct support to firms: technology	Technology demonstration centers Extension service
	Direct support to firms: finance	Credit guarantees for firms with strategies and projects formulated in the context of regional development strategy Subsidizing networking initiatives to cover transaction costs
Local government	Encourage inter-firm relationships	Involve groups of SME and their associations in formulation of local development strategy Public purchasing policy geared at groups / consortia of SME Establish technology incubators
Business associations	Stimulate information exchange between firms	Establish sectoral and topical working groups, managed / moderated by association’s professionals Organize seminars with external speakers Bolsa de subcontratación
Research institutions, universities, training institutions	Direct support to firms: education and technology	Tailor-made training courses for groups of SME Dissemination of technology information
Medium and large firms	Supplier development	Individual assistance to suppliers Training courses for groups of suppliers