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Against All Odds Building Innovative Capabilities in Rural Economics Initiatives in El Salvador Cummings, Andrew

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Against All Odds Building Innovative Capabilities in Rural Economics Initiatives in El Salvador Cummings, Andrew Aalborg Universitet Against All Odds building Innovative Capabilities in Rural Economics Initiatives in El Salvador Cummings, Andrew Publication date: 2007 Document Version Publisher's PDF, also known as Version of record Link to publication from Aalborg University Citation for published version (APA): Cummings, A. (2007). Against All Odds: building Innovative Capabilities in Rural Economics Initiatives in El Salvador. Fundación Nacional para el Desarrollo (FUNDE). SUDESCA Research Papers No. 40 General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. ? Users may download and print one copy of any publication from the public portal for the purpose of private study or research. ? You may not further distribute the material or use it for any profit-making activity or commercial gain ? You may freely distribute the URL identifying the publication in the public portal ? Take down policy If you believe that this document breaches copyright please contact us at [email protected] providing details, and we will remove access to the work immediately and investigate your claim. Downloaded from vbn.aau.dk on: September 28, 2021 AGAINST ALL ODDS Building Innovative Capabilities in Rural Economic Initiatives in El Salvador Andrew Roberts Cummings PhD Thesis Department of Development and Planning Aalborg University, Denmark 2005 SUDESCA Research Papers No. 40. Title: Against All Odds: Building Innovative Capabilities in Rural Economic Initiatives in El Salvador. SUDESCA Research Papers No. 40. Publisher: Fundación Nacional para el Desarrollo (FUNDE), El Salvador Year of Publication: 2007 ISBN-13: 978-87-90604-38-7 ISBN-10: 87-90604-38-5 Copyright: Andrew Roberts Cummings & FUNDE Printer: Talleres Graficos UCA Financing: SUDESCA Project Distribution: Fundación Nacional para el Desarrollo (FUNDE) Calle Arturo Ambrogi, No. 411, Colonia Escalón San Salvador, El Salvador P.O. Box 1774, Centro de Gobierno Contact person: Andrew Cummings Tel: (503) 2209-5300 Fax: (503) 2263-0454 e-mail [email protected] Permission is granted for partial reproduction of this text for academic or other purposes, given proper citing of the source. The SUDESCA project is a joint research project between Centro Internacional de Política Económica para el Desarrollo Sostenible (CINPE), Universidad Nacional, Costa Rica and IKE/DRUID & Centre for Environment and Development, Aalborg University, Denmark. The project includes research collaboration with Escuela de Economía de la Universidad de El Salvador, Fundación Nacional para el Desarrollo (FUNDE), de El Salvador and Escuela de Economía Agricola (ESECA) de la Universidad Autonoma de Nicaragua (UNAN). The project aims at the enhancement of the Central American research capacity within the areas of systems of innovation analysis and the implementation of cleaner technology. The project is financed by the ENRECA program (Enhancement of Research Capacity in Developing Countries) of DANIDA (Danish International Development Assistance), Ministry of Foreign Affairs. Index Acronyms and Abbreviations v Acknowledgements vii Introducción 1 PART I Problem Statement, Research Questions and Methodology 7 Chapter 1 El Salvador’s Rural Development Problems 9 1.1 Economic Transformation and Poverty in Rural El Salvador 11 1.2 Rural Economic Livelihood Strategies and Rural Poverty 12 1.3 Adverse Structural Conditions for Rural Economic Initiatives 16 1.4 A Dismal Conclusion? Unsustainable livelihoods 20 1.5 Possible Alternatives? Rural Development Proposals 20 1.6 Reasons for Cautious Optimism in Innovative Economic Initiatives 22 Chapter 2 Research Questions and Methodology 25 2.1 Research Objectives 27 2.2 Research Questions 27 2.3 Research Methodology 28 PART II Conceptual Framework for Case Study Analisis 35 Chapter 3 Developing Innovative Capabilities in Economic Initiatives 37 3.1 Technology and Technological Systems 39 3.2 Dynamics of Technological Transformation 42 3.3 Innovative Local Economic Initiatives 48 3.4 Interactive Learning and Application of Innovative Knowledge 53 3.5 Dynamic Assimilation of Exogenous Technological Components 60 3.6 Innovative Capabilities of Task-network Actors 64 Chapter 4 Regional Innovation Systems and Innovative Practice 69 4.1 Regional / Local Economic Development 72 4.2 Regional Systems of Innovation 76 4.3 Territorial Production System 82 4.4 Linkages between Firms and Regional Enterprise Support Networks 85 4.5 Territorial Governance Mechanisms and Innovative Practice 87 4.6 The Organizational and Institutional Configuration of RIS 92 4.7 Relevance of a Regional Innovation System’s External Linkages 98 4.8 Regional Social Capital and Innovative Capacity 101 PART III Case Study Presentation and Analysis 105 Chapter 5 The Innovative Nature of the GBL’s Economic Initiatives 107 5.1 The Emergence and Nature of the Grupo Bajo Lempa 109 5.2 The role of CORDES in the GBL and its economic initiatives 112 5.3 The GBL’s Innovative Economic Initiatives 114 5.4 Functional Innovative Capabilities of the Task-network Actors 150 5.5 Final Reflection on the Innovative Nature of the GBL’s Initiatives 159 Chapter 6 Innovative Technological Capabilities in the GBL’s Initiatives 161 6.1 Technological Transformations in the GBL’s Economic Initiatives 163 6.2 Innovative Economic Initiatives 168 6.3 The GBL as an Agglomeration of Linked Economic Activities 173 6.4 Development of the GBL’s Technological Specialization Pattern 176 6.5 Interactive Learning Within and Between the GBL’s Initiatives 180 6.6 Networking Capabilities and the Coordination of Innovative Practice 187 6.7 The Dynamic Assimilation of Exogenous Technological Novelty 191 6.8 Emergence of Innovative Capabilities in the GBL’s Task-Networks 193 Chapter 7 Tecoluca’s Emerging Regional System of Innovation 195 7.1 Territorial Production System 197 7.2 Dynamics of the Regional Enterprise Support Network 210 7.3 Territorial Governance System and Capabilities 221 7.4 Relevance of Regional and Exogenous Institutional Set-ups 229 7.5 Collective Capabilities to Create Room for Innovative Maneuver 237 7.6 Integral Conceptualization and Analysis of Tecoluca’s RIS 239 7.7 Emerging Regional Social Capital and Innovation Capacity 244 PART IV Conclusions, Lessons and Final Reflections 249 Chapter 8 Conclusions and Lessons for Practice 251 8.1 Innovative Capabilities of GBL Initiative Task-Networks 253 8.2 Explaining the Emergence of Innovative Capabilities 260 8.3 Regional Factors and Innovative Practice in Economic Initiatives 266 8.4 National and International Factors and Localized Innovative Practice 272 8.5 Concluding Reflection on Lessons and Cautious Optimism 276 Chapter 9 Critical Theoretical Reflections and Future Research 277 9.1 Achievements and Limitations of the Research Process 279 9.2 Critical Reflections on the Conceptual Framework 281 9.3 Future Research Challenges 285 Annexes 291 Bibliography 299 Illustrations Tables Table 1 Rural Family Economic Livelihood Diversity 14 Table 2 Historical Evolution of Processing Volumes and Sales 143 Table 3 Employment at the SAMO 147 Table 4 Employment and Average Monthly Wages at the SAMO 2004 147 Boxes Box 1 Urban / Rural Divide in Human Development Indicators, 2003 13 Box 2 Components of Technology 41 Box 3 Local Economic Development Defined 73 Box 4 Associational Governance and Technological Innovation in the EU’s LFRs 91 Box 5 Combining Synergistic Local and Extra-Local Linkages in Nordic Clusters 100 Box 6 El Roble’s Work with Women 120 Box 7 External Support for AGROLEMPA 125 Box 8 BIOLACT’s Problem Analysis 134 Box 9 Economic Impact on the Livelihoods of Cattle Producers 136 Box 10 Innovations in the SAMO Processing Plant 142 Box 11 Sources of Innovative Knowledge for Processing Innovations 143 Box 12 Knowledge and Power at Play in the BIOLACT Initiative 172 Box 13 External Knowledge Sources and Related Networking Capabilities 188 Maps Map 1 The Municipality of Tecoluca: El Salvador 4 Figures Figure 1 SAMO Initiative Task-Network 168 Figure 2 The Territorial Embedding of the SAMO Initiative 202 Figure 3 Potential Innovative Products from Cashews 298 Acronyms and Abbreviations ACDSNV Campesino Development Association from the North of the San Vicente AGROLEMPA Agricultural Association of Producers from the South of the Bajo Lempa ALCA Free Trade Area of the Americas APRAINORES Association of Organic Agro-industrial Producers of El Salvador BFA Agricultural Foment Bank BIOLACT Agro-industrial Dairy Processing Plant CAFTA Central American Free Trade Agreement CDA Departmental Mayor’s Council CDM Municipal Development Committee CENTA National Center of Agricultural and Forestry Technology CENDEPESCA National Center for Fishing Development CIT San Vicente Committee for Technological Innovation CND National Development Council COMURES Corporation of Municipalities of the Republic of El Salvador CORDES Foundation for Cooperation and Communal Development of El Salvador Expanded Access and Economic Opportunities for El Salvador’s Rural CRECER Poor Families (USAID project) CRIPDES Association of Rural Communities for the Development of El Salvador ECLAC Economic Commission on Latin America and the Caribbean ETM GBL Business Working Group FEDARES Federation of Associations of Irrigation System Users of El Salvador FPL Popular Liberation Forces FIS-DL Social Investment Fund for Local
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