This dissertation examines the creation of a network of service companies, subcontracted by Alunorte, as a consequence of the production flexibility process of the alumina industry, located in the industrial sector of the city of Barcarena, State of Pará. The main goal of the
present study is to analyze if the relations established between the big industry and its subcontractors network, and between the subcontractors and local institutions, has fostered local development effects. This work relies on a theoretical base of several studies, claiming that through such agents interactions and articulation of innovation systems, a production arrangement or a company network is formed. The resulting format will or will not stimulate a continuous and disseminated production of technological and organizational innovations, as well as the formation of human and social capitals, which are critical for fostering endogenous development. The field research, however, has shown that, despite enjoying an ongoing relationship with the world biggest alumina producer an industry linked to a global logic of competition and technological and management innovation no trace of dissemination and assimilation of such know-how by the subcontracted companies is found. Not only because of insufficient qualification and technological conditions, but also due to the lack of mutual reliable relations and mutual cooperation in production and innovation among the above mentioned companies, and among those and the local institutions network. This gap hinders possible advances of production arrangements towards an economy of scale and improvement of productivity and competition levels. Therefore, there is not a favorable environment for dynamical initiatives towards local development.
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