Innovation in mining value chains: New evidence from Latin America

Carlo Pietrobelli*, A. Marin, Jocelyn Olivari Narea

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

The paper investigates new opportunities for innovation and linkages associated to mining activities in Brazil, Chile and Peru. Three types of opportunities were researched: demand side, supply side and local specificities. The last source of opportunities is key for natural resource related activities. The evidence shows that an increasing demand is introducing important incentives for innovation and local suppliers. Nevertheless, a hierarchical value chain, dominated by few large firms, and poor linkages is blocking the diffusion of innovations and hindering suppliers’ development. The emergence of a group of highly innovative suppliers, which were identified in the three countries, is explained mostly by new technological and knowledge opportunities, which are not exploited by large incumbents and open spaces for new entrants. Local specificities are also key in the explanation of local suppliers. It remains a challenge however, how these, most of which were created to satisfy local needs, will move from local to global.
Original languageEnglish
Pages (from-to)1-10
Number of pages10
JournalResources Policy
Volume58
DOIs
Publication statusPublished - Oct 2018

JEL classifications

  • o31 - Innovation and Invention: Processes and Incentives
  • o32 - Management of Technological Innovation and R&D
  • l72 - Mining, Extraction, and Refining: Other Nonrenewable Resources
  • q31 - Nonrenewable Resources and Conservation: Demand and Supply

Keywords

  • Global value chains
  • Governance
  • Innovation and learning
  • Latin America
  • Mining
  • Natural resources
  • O13
  • O32
  • O43
  • Diffusion of innovations
  • Global value chain
  • Local suppliers
  • Mining activities
  • Supply sides
  • Value chains
  • Chains
  • governance approach
  • innovation
  • learning
  • mining
  • natural resource
  • supply chain management
  • Brazil
  • Chile
  • Peru
  • PUBLIC-POLICY
  • OPPORTUNITIES
  • TECHNOLOGICAL CAPABILITIES
  • LINKAGES
  • GOVERNANCE
  • NATURAL-RESOURCES
  • GLOBAL VALUE CHAINS
  • DEVELOPING-COUNTRIES

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