Dell Computer Corporation’s recent site selection process for its
manufacturing plant in Brazil involved bargaining with five of Brazil’s 26
states. The state government of Rio Grande do Sul (RS), eager to transform the state
into a centre for high technology investment, offered Dell generous incentives and
“won” this large investment project. Although the incentives
were important, Rio Grande do Sul’s success can also be attributed to the
government’s ability to work effectively with a private development
agency, Pólo, which provided the state with a domestic embeddedness and a
transnational strategic network that facilitated its ability to attract foreign investment.
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