Abstract
This article aims to identify and analyze the aspects that drove the spatial concentration of garment firms in Prado, a block located in Belo Horizonte, Brazil. It also aims to evaluate the competition relationships that firms developed between each other in order to benefit from agglomeration advantages. In this sense, the selection of this research topic is based on two reasons. Firstly, it looks at the potential benefits from the spatial concentration of firms. Secondly, in terms of the local economy, the selected industry is highly representative. Based on 15 interviews with entrepreneurs and individuals from the firms’ local association, it is suggested that the factors that are considered traditional by the literature influenced the localization decision of the firms. In addition, it is found that the cooperative relationships are still incipient. Therefore, the potential competitive advantages based on spatial concentration have not yet accrued to the firms. Finally, the results show that the deterioration of a neighboring cluster benefited the agglomeration of firms in Prado.
Key-words: Cluster. Garment firms. Competition relationships interfirms.
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