The Role of a Local Industry Association as a Catalyst for Building an Innovation Ecosystem: An Experiment in the State of Ceara in Brazil

We show that an industrial association can play the role of a catalyst for change where government intervention does not provide a sufficient response to market failure in the development of innovation activities, especially in less developed regions. This experimental study was conducted in the State of Ceara in Brazil by the UNIEMPRE program of the federation of industries (FIEC). The findings show the positive influence of the local association of industries as a catalyst for the innovation process, acting through five main channels: increasing the awareness of all actors, providing information and knowledge, assisting firms in developing their innovation capabilities, developing the milieu’s innovation capabilities, and establishing long-term sustainability of the process.