3.1.2 The IT Cluster in Costa Rica
Costa Rica has fostered its economic growth attracting Foreign Direct Investment (FDI), it has managed to change its production from the agricultural field to the high technology sector and orienting their production towards the exports. Costa Rica has recorded a steady increase in the exports from 1997 as a consequence of the increase of FDI and the installation of a production plant of microprocessors of the foreigner company Intel Co. (CEPAL, 2010). Intel is the largest producer of microprocessor chips in the industry of technology in the world. Its presence is well established with different plants around the globe, especially in some regions of Asia. Its incredible growth rate pushed Intel to constantly need to open additional production plants, which led to the construction of their production facility in Costa Rica.
Why Intel chose Costa Rica? There were some specific factors that influenced the decision of Intel. In comparison of other potential locations, this country provided: political and social stability, local resources focused to health education and which contributed to provide Intel qualified human resources for the daily activities. By the time Intel was looking for a country in Latin America in which they could operate a new plant, Costa Rica was one of the countries with less illiteracy rate in the region. In addition, the relatively close proximity of the country also played an important role during the decision process. Most of all, the national government was willing to support the installation of the high technological facility in the country, they agreed to exonerate Intel the pay of taxes for 8 consecutive years. All these support, made this Central American country an a...
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...ducing locally highly value added products and increasing the capability of companies to fulfill the demands of the international market
The analysis of the experiences in the region allows to identify the main characteristics that a conglomerate should have in order to be considered as a cluster:
• A cluster is a group of companies that are spatially concentrated and are specialized in one determined sector.
• Clusters develop forward and backward linkages, inside and outside the business group, in order to favor the exchange of goods, services and information.
• Around a cluster a local private and public support network is generated.
• A cluster has cooperation agreements with industry bodies, both public and private, academic and training institutions.
• In the companies, improvement processes in production, control of the products and processes are established.
high-tech cluster in the world. This 1,290.10 square miles area is the location for most headquarters of the largest technology corporations e.g.: Google, Intel, Apple Inc., Symantec, Hewlett Packard and Facebook. In order to achieve the productivity benefits and innovation advantages that take place in Silicon Valley, established high-tech companies based in other locations (both foreign and domestic), such as, Dell, Sony, Nokia and Siemens, have established subsidiaries in this cluster. 2.1 Clusters
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