Why do some new export activities succeed while others do t? Why are some t even attempted? In this book, distinguished research teams analyze eleven cases of new export endeavors in six Latin American countries to learn how export pioneers are born and jump-start a virtuous process leading to ecomic transformation. The case studies range from blueberries in Argentina and fresh cut flowers in Colombia to aircraft in Brazil and software in Uruguay. They put to the test two conjectures: that costly burdens to entrepreneurial self-discovery due to imitation by competitors deter would-be pioneers (the low appropriation hypothesis advanced by Harvard's Hausmann and Rodrik) and that new export activities are a complex enterprise that only reach fruition when the invative contributions of many actors are somehow provided jointly (the failure of coordination hypothesis). These case studies offer many examples in which cooperation proved absolutely vital to export success, while problems of appropriation appeared less critical. Interestingly, in solving coordination problems, invators frequently mitigated problems of appropriation. Coordination is difficult, however, and, as the tales of these export pioneers suggest, industrial policy has an important role to play in facilitating it.
Charles Sabel is Maurice T. Moore Professor of Law at Columbia Law School. Eduardo Fernandez-Arias is Lead Economist at the Inter-American Development Bank. Ricardo Hausmann is Director of the Center for International Development at Harvard University. Andres Rodriguez-Clare is Professor of Economics at Pennsylvania State University. Ernesto Stein is Lead Economist at the Inter-American Development Bank.
Andres Rodriguez-Clare, Charles Sabel, Eduardo Fernandez-Arias, Ernesto Stein, Ricardo Hausmann