Competitiveness and Productivity of the Colombian Economy by Means
of Competitive Routes and Clusters
1JARAMILLO RODRÍGUEZ ENEIS, 2AGUIRRE FRANCO SANDRA LUCIA,
2HERNÁNDEZ TRUJILLO YANIER ALBERTO
1International Trade Program, Central Unit of Valle del Cauca, Kilometer 1 south exit Tuluá, Valle de
Cauca, COLOMBIA
2Business Administration Program. Central Unit of Valle del Cauca, Kilometer 1 south exit Tuluá.
Valle de Cauca, COLOMBIA
Abstract: - The paper shows the state of the art of identification, formation and development of the clusters in
Colombia, collecting topics from the decentralization process in Colombia, the fiscal decentralization and the
economic growth; a period of economic changes in the country begins from these two topics, the productive
apparatus is prepared to compete with the most demanding markets of Europe, Asia and North America. For
carrying out this, it was necessary to change the culture of production, it is not a matter of doing what the
entrepreneur wants but to propose new goods and services to the global market, generating a brand value and
differentiating them from international competitors; Colombia in the twentieth century opened its doors to
foreign trade, and started working on the proposal of economic opening, it was necessary to work on the new
Political Constitution of Colombia, from that time there is a change, a work of the National Planning
Department, in conjunction with the National Council for Competitiveness, the work is based on proposing
new productive bets, this as a strategy to face the competition that was seen coming to the country, with the risk
of losing national entries in the market by national companies and on the contrary the international companies
would arrive at the national market with new products, innovated and of low price, the national industry would
not be able to produce and compete at the prices of the imported goods. One of the initiatives is to form
associativity, by means of which productive processes could be improved, more advanced technology would be
handled, joint research would be carried out, and work would be done to transfer knowledge, strengthen the
productive chain and within the organizations would improve the value chain as a strategic tool, through which
the company's activities and sources of competitive advantage are analyzed; from this, the clusters are being
worked on another proposal, which began to revolutionize Colombia's economic change by moving from an
economy based on extractive and mining activity to offering differentiated products with added value, quality
was considered an integral part of the good and with a specialized human resource, in this way the regions have
made a great social leap, since from this new chain the regions begin to strengthen their economy, to improve
their human talent, to manage the supply chain, and above all to export non-mining energy products that in short
only leave shortages of products from the family basket, depletes and impoverishes the productivity of their
soils, contributing a negative GDP, because in the long time, the land where the mineral exploitation as oil and
coal become sterile for that, although at one point they can represent an important sector for the economic
activity of the country and reflects in its GDP an important percentage to the economy, this type of economic
activity destroys the country's competitiveness in the long term, so in the medium term can be seen as a lever
for economic and social development.
The clusters represent a new production alternative for the country as a strategy for local growth, for the
Colombian economy in global scenarios means diversification in the exportable supply; for this, it is necessary
to define strategies that enable productive transformation in the country, this will provide tools and
sophisticated knowledge allowing the productive sector to obtain greater profitability and sustainability over
time, to offer products, bines and high quality services [28].
The aim that the cluster network has been working for is the generation and exchange of knowledge among the
different actors that are part of the productive alliance formation and cluster dynamization.
This objective is evidenced by the success it has had in the Valle del Cauca with the cluster of sugarcane,
medical excellence, macrosnacks, care and beauty, white protein, among others.It is for all the above that this
work wants to show the importance of the diversification of goods and services of an economy from the
synergetic and pooled work that the clusters provide, it is well known that the economies that diversify are those
that can compete in the global market since its economic component is not only based on sometimes non-
renewable natural resources such as hydrocarbons, but they work with the most important resource that an
economy has its human talent, this resource is renewable and it is not exhausted, on the contrary it is
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1584
Volume 19, 2022
transformed, updated, qualified, transferred and it is a know-how for international trade, this term can be
understood as preexisting knowledge not always academic, which includes techniques, secret information that is
known and handled efficiently and with experience, which has become a valuable intangible asset, this includes
the most appropriate way to mix components, equipment used, this personnel that knows how to perform the
tasks; all this is mixed in a cluster.
Key-Words: - Cluster, productive agenda, competitiveness, Transformational leadership, total quality
management, quality assurance, organizational performance.
Received: August 20, 2019. Revised: August 8, 2022. Accepted: September 2, 2022. Published: September 9, 2022.
1 Introduction
This paper refers to the development of the cluster
in the country, and how it helps to energize local
economies, defining strategic plans that configure
competitive schemes for each segment or
component of the business, becoming the engine
that drives and energizes the economy from the
synergy and cooperation between business
networks, which allow strengthening the different
industrial and commercial sectors, closing gaps and
acting as agents of change.
From this networking initiative, the regions are able
to diversify and increase their exportable supply,
specialize their human talent, overcome
infrastructure deficiencies and improve their internal
factors to attract foreign direct investment, which
allows them to develop a positive attitude towards
constant learning and be proponents of institutional
modernization.
The cluster analysis shows how in the long term, the
country, the region, sectors, and companies can
improve their competitiveness, showing a varied
industry, which produces an improvement in
Colombia's balance of payments, thanks to the
increase of the gross domestic product, allowing to
achieve local, regional and national growth.
2 Theoretical Development
By carrying out this work, it is cited [26], with its
Diamond of Competitiveness, which includes the
existence of specialized human resources, technical
infrastructure, factors of production required in the
industry, as well as the capacity of continuous
improvement, based on this diamond is the
following relationship.
Related and Supporting Industry: suppliers of
supplies and services are immersed in it, as well as
distributors, for companies the sector in question.
Demand conditions: refers to the national demand
for goods and services produced by companies in
the sector in question, which must be demanding
and sophisticated to stimulate innovation.
Firm strategy, structure and rivalry: it refers to the
organization and administration of the companies in
the sector in question, as well as the conditions of
competition in the domestic market, which must be
demanding in order to stimulate permanent business
and productive innovation [28]
The previous theory of Professor Michael Porter
reaffirms that it is possible that a country, a region
and a group of interrelated companies can develop
and compete in sophisticated markets, just as the
four postulates of the diamond are as important as
the system they make up if one of them presents a
weakness in one of its links, it is limiting to the
possibility of having an industry or sector that can
increase competitiveness.
It is revealed that for a country, a sector to advance
and to be able to strengthen as a region and flourish,
it must be able to provide a better quality of life to
its inhabitants, so that it remains competitive the
region needs to work according to the specialization
and join efforts in a public-private alliance without
leaving out the academy and the entities and
collegiate bodies committed to the development of
the country, the department and the region.
To talk about a cluster, it is necessary to start at the
beginning, it must be known what role
decentralization has played in the development and
competitiveness of the regions, territorial
development, asymmetric decentralization strategy,
strategic implementation design. In the forum
Colombia Construida desde las Regiones
(“Colombia Built from the Regions”), [12] can be
seen how Dr. Javier Burgos, director of
Decentralization and Regional Development of the
DNP (National Department of Planning) says “we
must listen to local governments to be participants
in the decisions to promote dialogue in the regions”,
Yesid Parra director of investments public finance
of the National Department of Planning, in this
forum also makes its contribution The budget
oriented to results allows to reduce transaction costs
which implies more efficient investments”.
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1585
Volume 19, 2022
It is started by saying that, according to the
dominant theoretical principle in the literature which
assumes that local governments are more efficient in
the allocation of public resources, compared to the
central government, since they have information and
more incentives to do so.
From the influential work of [31], on the role of
companies in identifying opportunities to create
value a considerable part of the literature suggests
that the companies real enterprise and
entrepreneurship contribute to economic
performance by introducing innovation and
competition in the market, foreign trade is an
increasingly important portion of the economy of
nations and regions, as they provide leverage for
growth and expand markets.
Based on the report of the Bank of the Republic
“Fiscal decentralization and economic growth:
regional evidence in data panel for Colombia, [17]
local authorities end up supplying the goods that
people prefer, since they are closer to the population
and they know their needs better [23], secondly,
local governments are under the permanent scrutiny
of their voters, they have incentives to execute
public policies based on the general interest of the
community [32]. Decentralization can also benefit
public management and market mechanisms, by
simultaneously favoring private activities. [17]
The sum of the aforementioned factors are actors
that contribute to learning, experience and
competence in the provision of collective consumer
goods, thus promoting regional economic growth,
which must be reflected in national economic
growth through GDP.
Based on the foregoing, the importance of the
internal agenda must be complemented, this should
be understood as an agreement of wills and
decisions between the National Government,
territorial entities, the private sector, political
representatives and organized civil society, on the
strategic actions that the country must take to
improve its competitiveness. [21].
The internal agenda becomes a road map through
which the country must adapt to the new rules of the
international business game [1], for which
entrepreneurs must prepare to open and expand its
market to the rest of the world, or at least to the
countries with which Colombia has signed Free
Trade Agreements, lowering production costs that
should be beneficial for local businesses.
With the start-up of internal agendas, regions must
work on strategic plans that allow them to present a
horizon where gaps between regions can be closed,
work systemically on innovation, technology and
development of new proposals for the market, the
public-private sector alliance strengthens synergy
and headquarters the step to sectoral growth,
connectivity between organizations and the creation
of networks of technological support, knowledge
transfer and strengthening the supply chain, will
make regions where foreign direct investment wants
to invest in those showing economic, social,
technological, logistic, educational, health
structures, among others, for competitiveness and
productivity, where productive chains such as
clusters can be formed and it is determined that
companies and sectors that present strengths and
special conditions for the competitiveness allow
them to work together to achieve international
certifications that are favorable for them to access
markets and consumers of high quality
requirements. The methodology that was carried out
by the Gran Colombia University (Armenia
Sectional) allows entrepreneurs to make strategic
decisions to innovate and to be more competitive, in
the same way helps to respond to the current and
future needs of companies located in their regions,
in order to debug horizontal policies and design
support policies, to strengthen bets on regional
clusters and boost competitiveness, this can be seen
in the issuance of the [7], shows the commitment
that the country has assumed one of the most serious
bets to support regional clusters with the program
“Competitive Routes”, which seek to strengthen
business growth competitiveness and promote
exports, this initiative ceded in October 2012.
The director of [7], Sergio Zuluaga talks about this
topic the “Competitive Routes”, has concentrated on
36, located in 18 departments with the task of
“unleashing extraordinary business growth
processes”, three have been identified working
groups consisting of six departments each; the first
formed by Norte de Santander, Santander,
Magdalena, Cesar, Bolívar and Atlántico, the routes
that stand out the most are ceramics, events tourism,
dairy and construction, among others; Huila,
Nariño, Cauca, Quindío, Tolima and Risaralda, are
part of a second group, while Antioquia, Valle del
Cauca, Casanare, Boyacá, Arauca and Meta make
up the third.
This text explains how a competitive route seeks to
improve its business actions of organizations
belonging to a cluster, based on the redefinition of
the long-term strategy, which seeks to increase
cooperation between the actors that are part of the
same, to increase production and sale in the national
market, to obtain an exportable offer important
enough for the international market.
The cluster issue started in Colombia when the
property monitoring firm the American expert
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1586
Volume 19, 2022
Michael Porter assesses the competitiveness of some
sectors commissioned by the government and the
private sector in 1999, targeting the studies to the
“ten strategic imperatives,” The theme of study of
the cluster is not only in the study done by Professor
Michael Porter, the governments of the day
continued to delve into the issue, for the year 1999
the Ministry of Foreign Trade launched the National
Productivity and Competitiveness Policy as part of
the Strategic Export Plan for the next ten years; and
in 2005 a workshop for 200 people was held in
Cartagena; the initiative started in October 2012,
and aims to enable companies to be able to compete
in global markets and innovate in products and
services and sell more.
In 2005, the high Presidential Council for
Competitiveness and Productivity was created and
subsequently Conpes (National Council of
Economic and Social Policy) 3439 of August 2006
was issued, through which the National
Administrative System of Competitiveness (SNC
for its acronym in Spanish Sistema Administrativo
Nacional de Competitividad) was created, which
defines that the National Commission
Competitiveness is the highest advisory body of the
National Government on Competitiveness. The
country begins the creation of the Regional
Competitiveness Commission (CRC for its acronym
in Spanish Comisión Regional de Competitividad),
which are the extension of the National
Competitiveness Commission.
Dr. Marcos Linás Technical Vice President of the
Private Competitiveness Council [8], explains the
concept of a cluster, “it is an economic phenomenon
occuring when companies from the same sector or
related sectors tend to be located in the same
geographical context”, the expert states that
“countries and regions that have these solid
agglomerations tend to have a better economic
performance”, the central government continues to
accompany this national policy of competitiveness
and productivity through Innpulsa responsible for
articulating the actions of the “Competitive routes”,
clarifies that this strategy “does not seek to form a
cluster from scratch” but to form a public-private
agenda to improve the competitiveness of
agglomerations in pre-existing principles”, this same
author complements what has been said previously
“what this program is looking for (…) is to create
local capacities in local actors to carry out this type
of work or this type of agenda”, likewise Linás
emphasizes that the work of strengthening these
concentrations of companies is also led by cities or
departments, ensures that the cluster constitutes
“one of the most effective ways to generate or
leverage the process” of sophistication and
diversification of the Colombian productive
apparatus; all of the above can be grouped with
economic strength, which interprets and measures in
a wide range, of which they overlap and link with
the notion of regional competitiveness, size and
growth of the main market, subject of analysis [24],
the economic strength examines the aggregate
conditions of the departmental economic acts
structural and demographic macroeconomic
pressures.
In 2008, the National Council of Economic and
Social Policy (Conpes for its acronym in Spanish
Consejo Nacional de Política Económica y Social),
which brings together several institutions, including
a high Presidential Council, gave birth to the
National Productivity and Competitiveness Policy.
The Competitiveness and Productivity Report 2009-
2010, which included a non-agricultural cluster map
in Colombia, then identified agglomerations of
companies in 29 economic sectors, covering 4.3
million jobs; “in this bet, we work on diversification
understood as producing new things, new sectors or
new sub-sectors (...) and sophistication such as
raising the level of productivity of existing sectors
or those new sectors”, said COLOMBIA.INN,
agency operated by Efe, in this document explains
how a competitive route seeks to improve the
competitiveness of the companies belonging to a
cluster from the redefinition of the long-term
strategy and increase cooperation among the actors
that are part of it.
The issue of cluster in Colombia is increasingly
taking more momentum and importance from them,
shared values that become engines for prosperity
can be worked, from them, a developing economy
can participate in global economies, these
strengthen productivity and innovation in the
regions. In the words of the expert in the topic
Professor Michael Porter in the International Forum
of “Cluster and Shared Value” held in Bogo in
May 2005 “to compete in the international arena we
must have a cluster, motors of prosperity”, the
professor pointed out that the cluster is where the
new businesses are being created, and the
undertakings.
In his speech highlights “the companies that are
born within a cluster grow faster and have less
chance of failure”, likewise continuing with his
paper point out that these concentrations lead
companies in the same sector to innovate to survive,
adds to his speech “all the clusters are good, because
they all make the country more productive”;
similarly during his presentation he also warned that
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1587
Volume 19, 2022
the success of these associations depends on all its
members, likewise makes a call to the Government
where he clarifies that the role of this should be to
listen to these concentrations of companies to align
their public policies it is not about the government
being the one that manages their business”, said
Porter, declaring against the existence of" a top-
down approach or having someone say what to do”.
Consulted by Colombia Inn on the panorama in
Colombia, Porter assured that “now the process of
competitiveness is moving towards a regional level,
where the critical opportunities are.
The Ministry of Commerce, Industry and Tourism
and Innpulsa Colombia, in order to strengthen the
country's cluster initiatives, entered into a
cooperation agreement with the Private
Competitiveness Council to create the Red Cluster
Colombia [28]. For the year 2012 specifically in the
month of April within the framework of the
agreement in which a Monitoring, Measurement and
Evaluation System (SSME for its acronym in
Spanish Sistema de Seguimiento, Medición y
Evaluación) is set up, which makes it possible to
demonstrate the degree of maturity of the cluster
initiatives in Colombia, with which define a
mechanism for classifying these using indicators.
In order to launch this initiative, pilot projects are
being carried out in 5 departments (Antioquia,
Atlántico, Bogotá, Huila and Naro) and in August,
an escalation to the more than 80 cluster initiatives
registered in the Red Cluster Colombia began.
The initiatives supported are shown hereunder
• Aeronautics in Risaralda
• Clays in Norte de Santander
• Bioenergy in Valle del Cauca
• Cocoa in Antioquia, Arauca and Bolívar
•Coffee in Antioquia, Magdalena, Nariño, Quindío
and Tolima
• Meat products in Arauca,
• Construction in Santander
• Leather in Quindío
• Plastic packaging in Antioquia
• Fique in Cauca
•Fruits in Huila - Granadilla, Magdalena - Banana,
Valle del Cauca - Fresh fruit, Risaralda -Blackberry,
Casanare - Pineapple, Meta - Fresh fruit, Nariño and
Casanare - Horticulture.
• Hydrocarbons in Santander and Casanare
• Nautical Industry in Bolívar
• Dairy products in Cesar, Nariño and Boyacá
• Logistics in the Atlantic and Bolívar
• Macro Snacks in Valle del Cauca
• Metalworking Maintenance - Bolívar
Fashion and clothing in Norte de Santander and
Tolima
• Furniture in the Atlantic
• Piscícola in Huila
• White protein in Valle del Cauca
Health and clinical excellence in Santander and
Valle del Cauca
• Transportation Services in Boya
• Snacks in the Meta
•Tourism in the Amazon, Arauca, Boyacá, Caldas,
Choco, Guaviare, La Guajira, Magdalena, Nariño,
Sucre, Tolima, Cauca, Cesar, Bolívar, Risaralda,
Norte de Santander, Santander, Casanare, San
Andrés and Providencia, Huila and Magdalena.
All this work is based on the methodology that is
framed in the concept of “Learning by Doing”,
which can be translated as learning based on the
facts, so each competitive route is a cluster
intervention initiative with a time of accompaniment
of 9 months.
With this initiative, companies that are part of a
cluster must go through three phases throughout the
design of each route. First phase in which the
challenges and bottlenecks that limit the
productivity of the cluster are identified. A second
phase in which strategic options are explored of
where the cluster should move. And a third one in
which lines of action are defined involving the
approach of obstacles and the achievement of the
selected strategic vision. These three phases are
combined in a plan of action with concrete actions
to improve the competitiveness of companies and
achieve greater success to meet current and future
challenges.
Among the most important challenges that have
been evident is the effective articulation of public
and private actors at the national and local levels
and the capacity to retain local teams so that the
continuity of the processes is guaranteed; [5]
Regarding Valle del Cauca, it is necessary to know
the institutional and competitiveness legal context,
the strengthening of the commission and the
formulation of the regional competitiveness plan
involved the participation and linkage of the
academy, the public and private sectors through the
conformation of the work table according to the
variables of the vision, which allowed the validation
of the departmental mission to 2032.
The Valle del Cauca regional competitiveness plan
is made up of 6 objectives, 18 strategies and 70
initiatives seeking to support the competitiveness
vision of the projected department by 2032. Conpes
3297 of July 2004 returned to the public policy of
competitiveness with the Internal Agenda for the
Productivity and Competitiveness, what this Conpes
sought is to have a permanent institutional
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1588
Volume 19, 2022
framework for reflection on competitiveness issues.
In 2008, the National Council of Economic and
Social Policy (CONPES for its acronym in Spanish
Consejo Nacional de Política Económica y Social),
which brings together several institutions, including
the High Presidential Council, gave birth to the
National Productivity and Competitiveness Policy;
The Competitiveness and Productivity Report 2009-
2010, which included a non-agricultural cluster map
in Colombia, identified agglomerations of
companies in 29 economic sectors, which covered
4.3 million jobs, so that “Diversification understood
as producing new things, from the existing, can
occur within new sectors or be generators of new to
put in new sub-sectors (...) and sophistication can
reach to raise the level of productivity of existing
sectors or those new sectors” said
COLOMBIA.INN, agency operated by Efe.
At present, Valle del Cauca has the Regional
Commission of Competitiveness, created by decree
NO. 558 of December 6, 2006, and for this, it is
necessary to frame the vision of Valle del Cauca
2032 and know the orientation of the development
plans, productivity and competitiveness for that
year, according to the formulated by the Regional
Commission of Competitiveness; now the Valle del
Cauca 2032 vision is presented, when reviewing the
narrative by the vision proposed by the Institute of
prospective and despite the more incrementalist tone
on the perceptions of possible futures in the medium
and long term, the participants pointed out aspects
that they considered fundamentally to add to the
vision of Valle del Cauca under construction, among
the factors mentioned, it was urged on the potential
of the Department's System of Cities and the
necessary diversification of the productive matrix,
the Valle del Cauca Vision 2032: To be a region
leader in human and sustainable development,
which is articulated to the dynamics of development
enhancing the connectivity and complementarity of
its system of cities, recognized for the quality of its
good governance, equity, access of its population to
education, knowledge of size development,
infrastructure and productive diversification for
development and entability for its development”.
[33].
The general objective is based on building a
prospective vision of Valle del Cauca as a global
region and of knowledge, based on a structural
change based on productive transformation,
innovation, and the performance of institutions
promoting economic, social, environmental and
science and technology. [33]
Based on the aforementioned arguments, Valle del
Cauca is shown as a solid department committed to
its development plan, showing a sectorial
diversification that allows general innovation of new
products capable of competing internationally, can
also be understood with the foregoing that the Valle
del Cauca eta strengthening its economy to face the
contingencies that occur in economic cycles, to
which any economy can face.
With this initiative, companies that are part of a
cluster must go through three phases throughout the
design of each route. First phase in which the
challenges and bottlenecks that limit cluster
productivity are identified. A second phase in which
strategic options are explored of where the cluster
should move. And a third in which lines of action
are defined that entail addressing obstacles and
achieving the strategic vision selected. These three
phases are combined in an action plan with concrete
actions to improve the competitiveness of
companies and achieve greater success to face
current and future challenges.
Among the most important challenges that have
been evident, is the effective articulation of public
and private actors at the national and local level and
the ability to retain local teams to ensure continuity
of processes.
With respect to the Valle del Cauca, it is necessary
to know the institutional and competitive legal
context, the strengthening of the commission and
the formulation of the regional competitiveness plan
involved the participation and linking of the
academy, the public and private sector by forming
the table of work according to the variables of the
vision, which allowed the validation of the
departmental mission to 2032. [7].
The Valle del Cauca regional competitiveness plan
is made up of 6 objectives, 18 strategies and 70
initiatives that seek to support the department's
vision of competitiveness projected to 2032. Conpes
3297 of July 2004 resumed the public policy of
competitiveness with the Internal Agenda for the
Productivity and Competitiveness, what this Conpes
sought is to have a permanent institutional
framework for reflection on competitiveness issues.
In 2005, the high Presidential Council for
Competitiveness and Productivity was created and
subsequently the Conpes 3439 of August 2006 was
issued, through which the National Administrative
System of Competitiveness (SNC) was created,
defines that the National Competitiveness
Commission It is the highest advisory body of the
National Government on Competitiveness. The
country begins the creation of [9] which are the
extension of the National Competitiveness
Commission.
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1589
Volume 19, 2022
To be able to understand more clearly the
participation that the Valle del Cauca has in the
national contribution for competitiveness and
productivity from the productive chains and the
cluster network, it is necessary to know the Visión
Valle 2032, parts must be known of this master plan
to be able to understand why the Valle del Cauca
bets on the cluster as a process of productive
diversification.
According to the economic factors that determine
long-term economic growth and the role of regional
governments, this process focuses on models in
which special factors are crucial [3], that economic
activities tend to gravitate mainly to areas with
greater transportation facilities and that it is close to
large markets, because of the aforementioned
performance of the region in terms of growth may
be related to geographical characteristics, and
unobservable elements.
Keeping up with the Visión Valle 2032, within the
scenario of Institutional Development and
Governance and emphasizing the Macro Scenario of
the Southern Subregion, it can be seen as the work
of the Prospective Institute and its full team in the
assessment of the Macro-Scenario in the southern
sub-region, the following points stand out:
In the axis of economic development: scenarios of
structural change are envisaged in “investment in
infrastructure” and in multimodal infrastructure.
In the areas of science, technology and innovation,
the scenarios of structural change in Alternative
Energy” and Clean Industrial Technologies”
dominate.
In the area of Science and Technology and
Innovation, structural change is anticipated in
“University - Company State alliances and
“Clusterization Strategy”.
In the axis of Environmental Development:
dominates the scenario of structural change in
“Land Management”.
On the Socio-Cultural axis: structural change is
anticipated in “Active Citizenship
In the Institutional axis Governance: in
“Corruption”, Violence due to Intolerance” and
“Povertydominates the scenario of regression.
In order to understand more clearly the participation
of Valle del Cauca in the national contribution to
competitiveness and productivity based on
productive linkages and the cluster network, it is
necessary to know the Visión Valle 2032 and
understand it, to know of this master plan to
understand why Valle del Cauca is betting on the
cluster as a process of productive diversification.
Based on the aforementioned arguments, the Valle
del Cauca becomes a solid Department committed
to its development plan; it also shows a sectorial
diversification that allows it to generate innovation
of new products capable of competing at an
international level. It can also be understood with
the above that Valle del Cauca is strengthening its
economy to face the contingencies occuring in
economic cycles, to which any economy can face
and must be prepared.
In 2010, the Economic Commission for Latin
America and the Caribbean ([6], on the
competitiveness of the Colombian departments of
Valle del Cauca, occupies one of the first places in
this ranking.
In this paper, it is shown how their main advantages
are represented by a solid capacity of their economic
structure, their disposition toward international
markets, their basic structure and their scientific and
technological environment.
Eighteen years after this analysis carried out by this
organization, the following report can be analized
today and it is clear that the Valle del Cauca is
consolidated as one of the departments that is
pulling the regional economy, then the analysis
based on the report made by this international
organization to measure the competitiveness of
Colombian departments.
According to the studies carried out by the
Economic Commission for Latin America and the
Caribbean ECLAC in 2017 on the competitiveness
of Colombian departments, Valle del Cauca
occupied the sixth position as seen in the following
report taken from the Escalafón de la
Competitividad de los departamentos de Colombia
2017 [6], authors Juan Carlos Ramírez J and Jhoan
Manuel de Aguas P. working document No 36.
ECLAC Bogo.
It is essential to know how economic strength is the
heart of any company, region or country, for this, it
is necessary to know how to define the economic
strength, according to the interpretation that is taken
from the working document No. 36 of the
Competitiveness ladder of ECLAC.
The competitiveness ladder has shown adequately
the statistical robustness of the relationship between
competitiveness and the wealth of nations [15],
these conclusions are also supported at a regional
level; it is natural to think of the richest regions as
the most competitive and vice versa [19].
The size of the markets has a demographic
dimension: the population density and the level of
regional urbanization are correlational variables
with the economic strength. This is because the
most densely populated regions are also those with
the highest concentration of activity, economy,
demand and specialized human capital.
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1590
Volume 19, 2022
The productive structure is relevant to economic
strength, a strong economy must be able to make
structural changes to maximize productivity and
growth, through the relocation of production in its
sectors or branches of economic activities.
According to the previous information provided by
the [6], it can be understood why the Valle del
Cauca has been concerned to work hand in hand
with the public-private partnership and academia as
a synergistic strategy to work joint projects to obtain
the results expected showing that teamwork is the
weapon of knowledge that project a society to
competitiveness and to give the expected results, as
it is the case of the conformation of cluster in Valle
del Cauca, of which have been identified 5 of them
among those that stand out the one of the white
protein, clinical excellence, macrosnacks, among
others. This type of productive chain is the one that
marks the economy not only in the Valle del Cauca
region, but also at the national level, it can be seen
how this initiative has changed the vision of
competitiveness in order to to be able to offer a
diversified export basket with high added value,
since the companies that form the cluster are
generators of exchange and transfer of knowledge,
joint research, development of new products, high
quality services and development and
implementation of technology according to the
need, which can be translated into a closure of gaps
between national and international companies, being
these generators of internationally competitive
products and services, promoting the national and
regional market as a tourist destination in health
when talking about the cluster of health excellence,
it is where can understood market expansion, region
brand positioning and export service and products
with high added value, showing the world a region
that grows hand in hand with its rulers, its
companies, its citizens, investment but especially
the specialization of its human talent. The following
map shows the competitiveness results, as shown in
Figure 22 of Working Paper No. 36, taken from [6]
and taken as a reference for the consolidation of the
Cluster.
Fig. 1: Competitiveness performance
Source: Taken from [6].
The work that has been carried out by the State in
accompaniment of an entire collegiate body could
not remain without harvesting fruits, the State
understand that competitiveness is local and is
gestated from the local with productive bets from
the local, based on all the work that has been carried
out defines that the clusters serve to understand a
business, design and implement policies to improve
regional competitiveness, are facilitators of the
dialogue between the productive sector and the
government, know how to focus regional efforts on
business and innovation, build local capacities ,
contribute to the improvement of the business
environment and the identification of market
opportunities.
Valle del Cauca is unaffiliated with all this
Dantesque work that the country has been doing,
Valle del Cauca knows that the department's growth
is linked to synergistic work, that the clusters are
efficient because they extend vertically in supply
chains until customers or laterally to suppliers of
complementary products and to companies
operating in related industries. The departmental
government is aware that this proposal does not
generate results but includes private, public
companies, universities, study centers, vocational
and vocational schools, unions, which become
providers of training, education, information,
research and technical support the Chamber of
Commerce of Cali leads the formation of a cluster in
this department and begins its task by organizing
strategies that will help strengthen the cluster
initiative.
Through the cluster strategy, led by the Chamber of
Commerce of Cali (CCC), with the support of the
Public sector, academy and unions, all the actors of
5 dynamic productive chains in the region (white
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1591
Volume 19, 2022
protein, bioenergy, macrosnacks,) have been
integrated clinical excellence, and well-being &
personal care) in order to align the objectives and
set common goals that impact on the strengthening
and development of each of the companies that
compose them and increase the prosperity of the
region, continuing with the process of identifying
Cluster has been contemplated a sixth cluster
recently the fruit, called fresh fruit.
Based on reports made by the CCC, in a work that
they have developed on a world-class cluster
identification, the cluster of clinical excellence has
been successfully led, the clinics and hospitals that
are part of this commitment have made various
activities and projects aimed at boosting its
competitiveness through knowledge and the
generation of new business opportunities, allowing
it to position itself as specialized and excellence
centers. Another important axis that is working on
the proposal of this cluster is to contribute to the
positioning of the region as a group of leading
companies in the process of technological transfer
and the internationalization of knowledge.
In the health sector, international recognition has
obtained with the work that has been done by the
Valle del Lili Foundation Clinic (FCVL for its
acronym in Spanish Fundación Clínica Valle del
Lili) and the Imbanaco Medical Center (CMI for its
acronym in Spanish Centro Médico Imbanaco) of
the city of Cali that appears in positions 7 and 20 of
the list of the best 40 health institutions in Latin
America, according to the annual classification
published by the magazine América Economía,
specializing in finance and business.
According to the above, Valle del Cauca has been
strengthening its growth, development, technology
and innovation, under the concept learned that
synergy and cooperation are the basis to face
globalization and competitiveness at local, regional,
national and international levels, that is why clusters
are a differentiating response in the supply of goods
and services for the country and the world market.
Esteban Piedrahita, president of the Chamber of
Commerce of Cali, [4], explains that, on the
platform, the Chamber of Commerce of Cali will
put at the service of entrepreneurs a space for
strategic discussion and technical support
specialized to promote the formulation and
development of a powerful agenda, aimed at
achieving higher growth rates of companies
participating in each chain with the purpose of
general greater welfare to the community, considers
“in Valle del Cauca, we must give enough
importance to the business issue and understand that
the best way to generate positive social impact is
with the creation of employment and business
growth. The countries of the world that are
prosperous and rich have many more companies per
capita than us, more successful companies and at all
scales”. This work carried out by the [4], has the
support of the cluster firm Development, a Catalan
company, which has accompanied more than 200
cluster initiative projects in several regions of the
world and which recently worked with Medellín and
Bucaramanga; likewise, it states that the main result
was the advance in the definition of the value chains
and the structure of the environment of the five
clusters, a process aligned with the knowledge and
experience of the Valle Departamental Government
and the Mayor's Office of Cali. The work that has
been developed with the articulation of all the
unions and the public sector has been key to define
with the entrepreneurs a plan that allows us to set
goals, sell and differentiate, design strategies and
show the world as a region with characteristics
specials and competitive advantages”. [4].
This work has been accompanied by different
workshops, among which Dr. Jorge Rarez, a close
collaborator of Michael Porter, who developed the
cluster concept and who has led the development of
the Cluster initiative of the Chamber of Commerce
of Bogo.
The Chamber of Commerce of Cali, during May 7
and 8, 2014 at the Valle del Pacifico Events Center,
Expo Pacifico management event, this event worked
on the progress and action plans formulated by the
entrepreneurs of each chain. For this event, Michael
Porter, world authority in strategy, competitiveness
and shared value, as well as Ronal Heifetz, director
of the Leadership Center of Harvard University,
analyzed the proposals of the entrepreneurs of the
region and commented on them.
The conclusions that were built in this workshop on
the clusters marked the path that would lead the
business sector that would contribute to the
development and prosperity of Valle del Cauca.
According to a report given by [4], in which it
presents the Clinical Excellence cluster, it presents
the list of companies that make up this type of
business organization with the provision of
specialized clinical/medical services in Valle del
Cauca , [28], the cluster of clinical excellence in the
Valle del Cauca is composed of 526 companies,
distributed in 12 business segments, composed of
the following organizations: clinics and hospitals,
which provide their specialized services not only to
the citizens of the department and region but
nationally and internationally where tourists arrive
to buy the specialized health services with
internationally recognized quality, aesthetic clinics,
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1592
Volume 19, 2022
medical supplies, medical equipment, prostheses
and implants, pharmaceutical industry and support
service between the ones that can be mentioned
(diagnosis, specialized outsourcing, specialized
research), chemical products, marketing and
packaging.
The projects under development are framed in new
services and business models that must respond in
the internationalization of the clustering initiative of
clinical excellence, the objective of this initiative is
to strengthen the capabilities of the cluster initiative
of clinical excellence in the development of new
business models for the care of international
patients.
To achieve this objective, the cluster has strategic
allies allowing it to work synergistically and
respond to the needs of patients or clients who seek
in this initiative attention with human and
specialized quality, participating companies
Occidente Angiography, Corpus and Rostrum; High
Specialization Dentistry - Becerra Soto Limitada;
Occidente otorhinolaryngology clinic; Salud Travel,
Clínica Occidente; Surgical Center of Beauty;
Furikanza Group; Saludvité Foundation and Clínica
Oftalmológica de Cali.
Likewise, they have strategic allies such as TEMOS
Internacional and Geomédica Health.
The companies participating in the clustering
initiative of clinical excellence are Valle del Lili
Foundation, the Imbanaco Medical Center, the
Amiga-Comfandi Clinic, Clínica Oftalmológica de
Cali and the Saluvité Foundation.
Without strategic allies this initiative would not be
complete and therefore its objective could not be
achieved, for this they have the Barcelona Hospital
Vall d'Hebron, Cluster Development and
Commission of Competitiveness of Valle del Cauca.
This initiative of Cluster of excellence of the health,
has identified lines of work which they are
mentioned next:
1. Strengthening of the specialization: it evaluates
the current specialized offer in Valle del Cauca,
closes the gap against the purchase criterion and
performs actions of positioning and approaching the
national patient.
2. Development and Marketing of knowledge-based
products/services: implementing innovation,
research and development and/or basic models in
Valle del Cauca institutions as a basis for the
development of differentiating knowledge.
3. Access and positioning in specialized channels:
strengthening access to national and international
target markets with development and business
methodologies and medical positioning strategy.
4. Strengthening the health destination: obtaining an
objective evaluation of Cali's market environment as
a health destination and establishing strategies to
strengthen the auxiliary industry and position the
destination.
The previous writing is based on reports collected,
worked on and studied by authors versed in the
subject that show a country and especially Valle del
Cauca as a leader in terms of health, “companies
have understood that to consolidate their strategies
of growth need to bet on demanding markets such as
the United States, Europe, Japan and South Korea,
this is the youngest initiative, this began at the end
of the year immediately before, this is in the process
of identifying possible markets” says Carlos Andrés
rez, director of the Economic and
Competitiveness Unit of the Chamber of Commerce
of Cali.
The cluster of the white protein takes force
whenever it counts on its own plan, has received the
val and the financing to foment the development of
activities of innovation, research, formation and
scientific and technological qualification; the
initiative was presented to the fund of Science,
Technology and Innovation of the General System
of Bonuss, by 11 companies of sector, Fenavi, Valle
Departamental Government, the Universidad del
Valle and the Chamber of Commerce of Cali
received an approval of $ 5.200 million, this cluster
groups 263 companies.
This type of initiatives are key to start a process of
consolidation of the business fabric of the
department and the region, this type of work is the
recovery of the social fabric of a community that,
like the Colombian one, has been broken by the
internal conflict that has left human loss, destruction
of families, social impoverishment specifically in
the rural sector, technological backwardness, little
economic growth, little progress in research,
innovation and development and a disarticulation of
public and private policies, the academy has little to
do with the business sector and this one results in
the loss of economic dynamism, leaving aside
initiatives and proposals that can generate new
social, cultural and political changes.
According to the América Economía magazine, the
Valle del Lili Foundation places it in the third place
according to the ranking, Dinero Magazine, 2018, of
the best hospitals and clinics in Latin America,
while the Imbanaco Medical Center occupies the
11th position, following in this order of ideas, it is
necessary to make an analysis of why the Valle del
Lili foundation is awarded this prestigious position,
the foundation has made investments of nearly $
9,600 million aimed at technology and computer
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1593
Volume 19, 2022
development, purchase of medical care equipment
and infrastructure projects, the director of the
clinical research center of the foundation Fernando
Rosso, says that “they have managed to position
themselves as a reference center for high technology
in healthcare matters.
The Valle del Lili Foundation established an
alliance with the ICESI University, with which they
have more than 17 first and second specialty
programs.
This foundation obtained the recognition of
University Hospital in 2017, granted by the
Ministries of Health and Education, the first in the
Southwest. Nowadays, they have more than 11
research lines and have published more than 100
articles in international journals.
The procedures that are done in this institution are
of bone marrow, heart, kidney, pancreas and liver,
among others.
Its mission focuses on the integrality of the social
good, the attention of this clinic only focuses on the
national patients, but it serves foreign patients
coming mainly from Panama, the Caribbean Islands,
Central America, it also receives doctors who
require training.
In order to strengthen all the work that Valle del
Cauca has been developing with respect to the
cluster, it is necessary to recognize that these
initiatives have been formed over time, their out lies
in the different studies and theories in which they
are framed and take on greater relevance in the
extent to which these economic initiatives show
their results positively in the region by generating
employment, improving the quality of life of its
citizens and contributing growth to their regional
GDP, improving the image of the country
contributing to the local and international market
products and come with high added value and
diversified what allows a difference offer that can
access international markets.
Referring to some theories that strengthen the
creation of the clusters, the following authors can be
cited as Marceau argues that Clusters are a
grouping of firms in the same industry, which
reiterates that they are simply not a set of random
companies that decide to locate themselves in the
same geographic context, but must have a direct
relationship in the industry that they develop, in the
same way without ignoring the professor [25],
defines them as the Clusters are geographic
concentrations of companies and interconnected
institutions that act in a certain field, these are a
range of related industries and other entities that are
important to compete”, all these works even today
become more valid, such as the on of the economist
Alfred Marshall who calls industrial districts to this
type of agglomeration, which are defined as
concentrations of specialized in a specific locality, is
a stable community, where a very strong local
cultural identity is affirmed, a socio-economic
interweaving is generated, where the social forces
join with the economic forces. The foregoing makes
it clear that the Government is a fundamental actor
in this type of economic associations in order to
give it strength and recognition based on its public
policies and governing bodies that promote regional
and local development.
Not only Professor Michael Porter has spoken of
cluster, should be known in the same way to Dr.
Marshall in the text of his authorship entitled
“Industry and Trade 1919 adds the concept of
industrial atmosphere that, together with the mutual
existence of trust and knowledge, facilitates the
generation of the skills needed by the industry,
promotes innovation and dissemination among
small and medium enterprises in the industrial
district.
All the characteristics described by Marshall in the
industrial district model are summarized in the
concept of agglomeration, which is the localized
elongation Becattini, not only of the strategic
choices of the individual company, but of the joint
presence of specialized companies and services
dedicated to them. That is why Becattini, based on
Marshall's first writings, also argues that to be able
to speak of an industrial district, it is necessary for
the population of companies to integrate with the
local community of people, culture reserve, values.
He also stands out as the principle of the clusters or
groupings was given thanks to the early
globalization” that was presented at the end of the
19th century, because thanks to transport
mechanisms and others, it was possible to learn
from other individuals who were in distant regions
and who in many cases formed small groups of
people specialized in different locations than their
births. Finally, Marshall also mentions the
advantages that the creation of business or other
groups brings to a region, because it highlights that
the growth of a local economy is thanks to the
specialization that is developed by direct influence
of the agglomerations, because with the help of
these there are highly trained personnel, latest
technology machinery and most importantly, a solid
economy is created consisting of several companies
providing en everyday growth and social standards
adapted by a process of industrialization from
below.
Within the work that Professor Michael Porter has
investigated, he reveals the benefits of a cluster [25].
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1594
Volume 19, 2022
Additionally, Porter indicates that clusters affect
competition in three different ways: the first,
increasing the productivity of companies based in
the area; second, driving the direction and pace of
innovation; and third, stimulating the creation of
new business forms that expand and strengthen the
cluster itself.
Similarly, Porter in 1990 published the book entitled
“The Competitive Advantage of Nations” in which
he referred to the importance of clusters or
agglomerations to achieve a significant competitive
advantage, so he indicated that to achieve this goal
depended on of 4 determining factors in its
environment, which it called “competitive
diamond”, which were: intense rivalry and firm
competitive strategy; this factor is shaped by the
way companies are created, organized and managed,
as well as by the nature of the rivalry between them
in the market and the industry that they develop.
On the other hand, Puga focuses on explaining why
this type of agglomeration exists around the world
and for this he divides the main reasons into three
large groups. First, he suggests that a larger market
(market concentration) allows a more efficient
distribution of local infrastructure and facilities, a
wide variety of input suppliers and a group of
workers with special skills. Second, he mentions
that a larger market allows a better match between
employer-employees and buyers-suppliers, since it
provides a wide variety of possibilities to find a
suitable partner or partner and a higher quality of
prospects. Finally, a larger market concentration can
facilitate learning.
Similarly Pietrobelli and Rabellotti indicate that this
type of concentration facilitates the development of
facts such as: division of labor and specialization;
emergence of a vast network of providers; the
appearance of agents that sell to national and
international markets; the emergence of specialized
services for producers/suppliers; the materialization
of a group of specialized and qualified workers; and
the formation of business associations. They also
argue that being part of a Cluster encourages
companies to compete fairly, with more innovative
products that help the growth and development of an
organization, more cost-efficient processes are
created with joint research projects that improve the
composition of the companies included in the
conglomerate, in addition, if Cluster management is
properly organized, a high degree of leadership can
be generated not only in products but also in
positioning and recognition strategies, generating
and facilitating the link with the international
market. So both conclude that the Cluster is a vital
means to achieve the strength of an industry or
market.
Oliver and Garrigós argue that the Clusters are
traditional sectors that are mainly oriented to
incremental innovation for all the organizations that
constitute it, due to the high degree of cumulative
knowledge they have and the type of information of
the sector, they can develop great changes,
improvements and progress for the market they
own.
Martin and Simmie [19] in their study entitled “The
Theoretical bases of Urban Competitiveness: Does
Proximity Matter?” introduce the term urban
competitiveness (which partly has the same
foundation as the one mentioned in this text whose
authorship is by Michael Porter), but in this case it
is defined as “the ability of cities to continually
improve their business environment, knowledge
base, and physical, social and cultural
infrastructures, in order to attract and retain high
growth, innovative and profitable companies, and an
educated, creative and entrepreneurial work force, to
allow to achieve a high productivity rate, high
employment rate, high salaries, high GDP per
capita, and low levels of income inequality and
exclusion Camagni who considers that the places in
fact compete, on the companies that attract (capital),
the workers (of work) and on the markets. On the
other hand, Puig argues that thanks to the
interrelation generated by companies participating
in a cluster productivity is increased thanks to
access to specialized inputs, employee services,
information, institutional support and technical
assistance, induce specialization by taking
advantage of market signals and the possibilities
that exist in world trade, help to regionalize the
industrial and technological policy of the country
based on the potential of the region, identify new
spaces for the creation of companies and new
employment opportunities, they also create more
efficient markets and lower transaction costs, for
that reason they boost productivity. Thanks also to
geographical concentration, it accelerates the
accumulation and dissemination of knowledge and
best practices, as well as stimulating and facilitating
innovation and experimentation, since they improve
the ability of companies to perceive investment
opportunities; it also promotes the installation of
creative institutions and providers of social
development”.
On the other hand, according to the study carried out
by Venacio, it is verified statistically that within the
industrial agglomerations is a greater diffusion of
autonomous economic agents and consequently a
greater diffusion of horizontal and cooperative
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1595
Volume 19, 2022
relations among social subjects, as a result that
transaction costs are low both due to the diffusion of
common codes and the speed of circulation of
sector-specific information.
It is important to know why the cluster of services is
formed, it is necessary to take into account the study
carried out by Keeble and Nachum who in the year
2001 affirm in their research known as “Why do
Business service firms? Small Consultancies,
Clustering and Decentralization in London and
Southern England”, that the growth of the service
provision sector (in England) has increased in
proportions greater than those of traditional
industries such as manufacturing, and especially
services whose workers are highly qualified and
specialized. As a consequence, they add that in the
English geography a division by regions is
presented, given the specialization that the service
providers present. That is why the main reason why
the service clusters are formed is the need for
accessibility to global networks, clients and
knowledge (both global and local), these Cluster
promotes the culture of trust and institutional
integration for the construction of networks of
cooperation, education and research, in order to
attract the international market and contribute to the
improvement of regional business competitiveness.
Kolko in his research “Urbanization, Agglomeration
and Conglomeration of Service Industriestrying to
explain the factors that affect the localization
patterns of the service and manufacturing industry;
where he clearly agrees with that affirmed by
Keeble and Nachum , since he also indicates that the
service delivery industry dominates the economies
of developed countries (as is the case of the United
States) and that the future of the main cities depends
in large part to the sector of service provision, so
inferred that the Cluster of services are more
urbanized (first differentiating factor) than those of
manufacturing, which makes us think that the
agglomerations of this type of industry are presented
with greater frequency and size in the main cities,
but they are less concentrated than in other
industries, which means that currently there are not
many service clusters since they are not located in
any region of a country.
Working on this line of research, it can not be
ignored the hypothesis that raises Kolko also adds
that the service clusters occuring most often are
those that provide professional, scientific, technical,
business management services and finally those
companies which are in charge of providing basic
services to homes and manufacturing companies
(water supply, sewage, electric power, among
others); on the other hand, it emphasizes those
establishments such as hotels and restaurants that
are less urbanized (which are not necessarily located
in the main cities) but even more so than the
manufacturing industry. Additionally, it proposes
that the most urbanized industries are investment
banking, film production, teleproduction and
postproduction services.
Gónzalez and Mendieta refer to the competitiveness
of tourist destinations which are presented with
great force throughout Latin America, these are
defined by Crouch and Ritchie as “the capacity of a
country to create added value and increase, of this
way, the national well-being through sales and
process management, attractiveness, aggressiveness
and proximity, integrating relations between them in
an economic and social model” that is why
Gónzalez and Mendieta conclude that these are the
most characteristic example of how the efforts of a
country are focused to achieve this advantage,
highlighting the special case of Peru, a country that
is currently characterized by having an important
agglomeration companies providing tourism
services and thus succeed in highlighting the culture
of their region and therefore create an economy
based on tourism.
3 Conclusions
Based on these theories, it can be clearly identified
because in recent years Colombia has set itself the
task of working on the identification and formation
of a world-class cluster, as it says [34] in the article
“Cluster, the strategic route of regional
competitivenesspublished in the magazine Dinero,
“given the macroeconomic context of the country
today, it is necessary to implement a new high-level
strategic business vision, to leverage the
strengthening of the Colombian economy in global
scenarios” pointing out that important entities such
as the Private Competitiveness Council and the
Foreign Trade Bank (bancoldex) have been
promoting the Cluster Colombia Network for
several years now, which aims to work for the
generation and exchange of knowledge among the
different actors that are part of the training of
productive alliances and dynamisation of the cluster.
[34], also informs that in Colombia there are more
than 65 cluster initiatives and more than 20
departments are in process of developing them.
To reaffirm what has been argued can not be
ignored according to [28], (space for interaction and
knowledge exchange between actors involved in the
development of Clusters and/or productive bets
from the local level) 7 types of Cluster are presented
in the department of Valle del Cauca.
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1596
Volume 19, 2022
First, the Cluster of macrosnakcs, which are those
companies producing food and beverages that are
consumed among the main meals of the day, has a
total of 25 companies and generates around 3679
direct jobs.
Second, the Bioenergy Cluster that has the
participation of 46 companies and generates
approximately 8445 direct jobs.
Third, the Colombian Electricity Cluster of the
Colombian Southwest, whose mission is to promote
initiatives promoting the development of the electric
power production chain, with the participation of 17
companies within which it is important to mention
entities such as EPSA, EMCALI and the Universidad
Autónoma de Occidente, which corroborates once
again that the agglomerations are not necessarily
entities dedicated to the production and provision of
services but also entities outside this activity.
Fourth, the Welfare and Personal Care Cluster,
which is made up of 191 companies and generates
an estimated 5800 jobs, this sector is of vital
importance since the research that will be developed
throughout the text will deal with the Cluster of the
sector of provision of medical services.
Fifth, the Fresh Fruit Cluster of Valle del Cauca,
where more than 20 companies actively participate
generating around 990 jobs.
Sixth, the Cluster of Clinical Excellence which is
defined as the market for medical services
characterized by high quality standards, with the
participation of 523 companies and whose sales in
2012 were USD 3.01 million, with growth of 13.9%
and generating a total of 5500 direct jobs.
Seventh, the White Protein Cluster, which brings
together about 124 companies related to poultry and
pork production in the Valley.
Likewise, the study carried out by the National
Association of Financial Institutions (Anif for its
acronym in Spanish Asociación Nacional de
Instituciones Financieras) ratifies what was said by
Piedrahita since it was found that Valle del Cauca is
the second national producer of pharmaceuticals and
medicines. On the other hand, and according to
Proexport figures, 4% of the people who entered the
country to perform health procedures arrived at the
capital of Valle del Cauca, which is why the
development of the city and region is highly driven
by this factor; also Piedrahita indicates that efforts
are still being made to improve the position of the
region vis-à-vis other Latin American countries.
References:
[1] Ahcar Cabarcas. Galofre Charris. Gonlez
Arana, S. O. (2013). Procesos de integración
regional en América latina: un enfoque
político. Revista de Economía del Caribe, No
11.
[2] Berthold , Richard, Valentinyi, H. R. (2014).
Growth and Structural Transformation.
Handbook of Economic Growth, Volume 2B,
855 - 941.
[3] Breinlich, . Ottaviano. Temple, H. G. (2013,
Julio).
http://cep.lse.ac.uk/pubs/download/dp1232.pd
f. Retrieved from http://cep.lse.ac.uk.
[4] Cámara de Comercio de Cali. (2017).
https://www.ccc.org.co/. Retrieved from
https://www.ccc.org.co.
[5] CEPAL. (2009). Escalafón de la competitividad
de los departamentos en Colombia. Bogo
D.C.: CEPAL. Retrieved from
https://www.cepal.org.
[6] CEPAL. (2017). Escalafon de la competitividad
de los departamentos de Colombia 2017.
Bogotá: CEPAL.
[7] Colombia - inn. (2018, Mayo 6).
http://colombia-inn.com.co/colombia-lidera-
apuesta-por-clusteres-regionales-para-
impulsar-competitividad/. Retrieved from
http://colombia-inn.com.co.
[8] CPC. (2018). Consejo Privado de
Competitividad . Retrieved from
https://compite.com.co/.
[9] CRC. (2017, Diciembre 14).
http://www.competitivas.gov.co/comisiones-
regionales-de-competitividad. Retrieved from
http://www.competitivas.gov.co.
[10] Darmawan, I. P. E., Sutrisno, T., & Mardiati, E.
(2019). Accrual Earnings Management and
Real Earnings Management: Increase or
Destroy Firm Value? International Journal of
Multicultural and Multireligious
Understanding, 6(2), 819.
[11] Diekola, A. M. (2016). The moderating effect
of environmental regulation and policy on the
relationship between total quality
management (TQM) and organizational
performance in the Malaysian food and
beverage companies. Universiti Utara
Malaysia.
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1597
Volume 19, 2022
[12] DNP. (2018, marzo 14).
https://www.dnp.gov.co/Paginas/Reviva-el-
foro-Colombia-construida-desde-las-regiones-
D%C3%ADalogos-sobre-
descentralizaci%C3%B3n.aspx. Retrieved
from https://www.dnp.gov.co.
[13] Gobernación del Valle. (2016, Junio 8).
https://www.valledelcauca.gov.co/planeacion/
publicaciones/33665/plan_de_desarrollo_del_
valle_del_cauca_el_valle_esta_en_vos/.
Retrieved from
https://www.valledelcauca.gov.co.
[14] Hameed, W. U., Basheer, M. F., Iqbal, J.,
Anwar, A., & Ahmad, H. K. (2018).
Determinants of Firm’s open innovation
performance and the role of R & D
department: an empirical evidence from
Malaysian SME’s. Journal of Global
Entrepreneurship Research, 8(1), 29. Henry,
U. (2014).
[15] Herrendorf, Rogerson, Valentinyi, B. R.
(2014). Crecimiento y transformación
estructural. Handbook of Economic Growth,
Volume 2B, 855-941.
[16] Idris (2019). Exploring Organizational Culture,
Quality Assurance, and Performance in
Higher Education. Management and
Economics Journal, Vol.3 (2) 2019.
[17] Lozano - Espitia. Julio - Román, I. J. (2015).
Descentralización fiscal y crecimiento
económico: evidencia regional en panel de
datos para Colombia. Borradores de
Economía, 1-32.
[18] Luthans, F. (2015). Organizational Behavior -
An Evidence-Based Approach - 12th
Edition. In J. Back (Ed.), Hospital Administration
(12th Editi).
https://doi.org/10.5005/jp/books/10358_23.
[19] Martin , R. (2003). Un borrador del informe
General de Política Regional. Rotterdam:
UNIVERSITY OF CAMBRIDGE .
[20] Mincomercio. (2015). Julio).
http://www.mincit.gov.co/tlc/publicaciones
/12418/la_agenda_interna%20. Retrieved
from http://www.mincit.gov.co
[21] Mincomercio. (2018).
http://www.mincit.gov.co/. Retrieved from
http://www.mincit.gov.co/
[22] Mincomercio. (2018).
http://www.mincit.gov.co/. Retrieved from
http://www.mincit.gov.co/.
[23] Oates, W. (1999). Un ensayo sobre el
federalismo fiscal. Revistas de Literatura
Económica - 37, 1120-1149.
[24] Pike , Rodríguez-Pose & Tomaney, A. A.
(2007). What Kind of Local and Regional
Development and for Whom? Regional
Studies, Vol. 41.9,, 12531269.
[25] Porter, M. (1988). On Competition. USA:
Harvard Business School Press.
[26] Porter, M. (1990). La ventaja competitiva de
las Naciones. New York: Harvard Business
Review.
[27] Ramli, Y., Soelton, M., Suprapto, Ali, A. J.,
Buana, U. M., Ramli, Y., (2020).
Implementing Transformational Leadership
To Cope With the Implication of Millennial
Workforce, 17(5), 5268.
[28] Red Cluster Colombia. (2018).
https://redclustercolombia.com/index.php/noti
cias/entradas/tema-central-programa-rutas-
competitivas/67. Retrieved from
https://redclustercolombia.com.
[29] Revista Dinero. (2018, 9 13). Empresas de
salud que se la juegan con la innovación en el
Valle. Revista Dinero.
[30] Soelton, Mochamad, Noermijati, N., Rohman,
F., Mugiono, M., Aulia, I. N., & Siregar, R. E.
(2020). Reawakening perceived person
organization fit and perceived person job fit:
Removing obstacles organizational
commitment. Management Science Letters,
10(13), 29933002.
https://doi.org/10.5267/j.msl.2020.5.026.
[31] Schumpeter, J. (1934). The Theory of
Economic Development: An Inquiry into
Profits, Capital, Credit, Interest and the
Business Cycle, translated from the German
by Redvers Opie, New Brunswick (U.S.A)
and London (U.K.): Transaction Publishers.
Journal of comparative research in
anthropology and sociology, 137-148.
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1598
Volume 19, 2022
[32] Tiebout, C. (1956). A Pure Theory of Local
Expenditures. The Journal of Political
Economy, Vol. 64, No. 5, 416-424.
[33] Valle del Cauca, Visón 2032. (2015).
http://crcvalle.org.co/wp-
content/uploads/Documentos/Plan-maestro-
de-desarrollo-regional-vision-2032.pdf.
Retrieved from http://crcvalle.org.co
[34] Vengochea, M. (2015). Clústers, la ruta
estratégica de la competitividad regional.
Revista WARREN GORHAM AND
LAMONT INCORPORATED, 23(1), 33.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en
_US
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.143
Jaramillo Rodríguez Eneis, Aguirre Franco Sandra Lucia,
Hernández Trujillo Yanier Alberto
E-ISSN: 2224-2899
1599
Volume 19, 2022