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The objective of this study was to evaluate the formation and dynamics of the Local Productive Arrangement (LPA) for Medical, Dental and Hospital Equipment in Campo Mourão, Paraná. Based on the theories of Penrose, Nelson, Porter and Suzigan, the study first presents a history of the subject and the functions it performs in each area. Subsequently, it presents an analysis of the field research carried out with 21 companies in the sector. At this point, aspects related to quality, the market, management and strategy, technology and innovation, and the dynamics of an LPA are analysed.