The Portuguese Case: The Cost Of Inequality

This chapter presents a case study of the Baixo Alentejo photovoltaic cluster in the South-East of Portugal. The cluster is a good example of an early stage cluster that had been initiated largely 'top-down', in a rural region with no real business/entrepreneurship culture or well-established networks of communication and coordination between players. The case shows how limited opportunities for SMEs to engage constructively with other stakeholders can constrain value creation for the cluster and the region. SME interview and survey feedback was characterised by a perception of real inequalities between SMEs and other players. The case highlights the impact of a very unequal relationship between SMEs and (a) policymakers shaping the business environment (b) large companies administering access to key services (c) Universities charged with supporting research and innovation.