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Innovation in mining value chains: New evidence from Latin America

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  • Pietrobelli, Carlo
  • Marin, Anabel
  • Olivari, Jocelyn

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.

Suggested Citation

  • Pietrobelli, Carlo & Marin, Anabel & Olivari, Jocelyn, 2018. "Innovation in mining value chains: New evidence from Latin America," Resources Policy, Elsevier, vol. 58(C), pages 1-10.
    • Handle: RePEc:eee:jrpoli:v:58:y:2018:i:c:p:1-10
    DOI: 10.1016/j.resourpol.2018.05.010
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Amir Lebdioui & Keun Lee & Carlo Pietrobelli, 2021. "Local-foreign technology interface, resource-based development, and industrial policy: how Chile and Malaysia are escaping the middle-income trap," The Journal of Technology Transfer, Springer, vol. 46(3), pages 660-685, June.
    2. Fernandez, Viviana, 2020. "Innovation in the global mining sector and the case of Chile," Resources Policy, Elsevier, vol. 68(C).
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    5. Lufin, Marcelo & Soto-díaz, Juan, 2022. "Technology, geography, and diversification in a small mineral economy," LSE Research Online Documents on Economics 115013, London School of Economics and Political Science, LSE Library.
    6. Justyna Woźniak & Katarzyna Pactwa & Mateusz Szczęśniewicz & Dominika Ciapka, 2022. "Declaration of the Sustainable Development Goals of Mining Companies and the Effect of Their Activities in Selected Areas," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
    7. Pereira Cabral, Bernardo & Lage de Sousa, Filipe & Canêdo-Pinheiro, Mauricio, 2020. "Assessing the impacts of innovation barriers: a qualitative analysis of Brazil's natural resources industry," Resources Policy, Elsevier, vol. 68(C).
    8. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    9. Namazi, Mehdi & Mohammadi, Emran, 2018. "Natural resource dependence and economic growth: A TOPSIS/DEA analysis of innovation efficiency," Resources Policy, Elsevier, vol. 59(C), pages 544-552.
    10. Smol, Marzena & Kulczycka, Joanna, 2019. "Towards innovations development in the European raw material sector by evolution of the knowledge triangle," Resources Policy, Elsevier, vol. 62(C), pages 453-462.
    11. Kashan, Alireza Javanmardi & Lay, Janine & Wiewiora, Anna & Bradley, Lisa, 2022. "The innovation process in mining: Integrating insights from innovation and change management," Resources Policy, Elsevier, vol. 76(C).
    12. Penny Bamber & Karina Fernandez-Stark & Oswaldo Molina, 2022. "Innovation and Competitiveness in the Copper Mining GVC: Developing Local Suppliers in Peru," Working Papers 183, Peruvian Economic Association.
    13. Alex O. Acheampong & Janet Dzator & Matthew Abunyewah & Michael Odei Erdiaw-Kwasie & Eric Evans Osei Opoku, 2023. "Sub-Saharan Africa’s Tragedy: Resource Curse, Democracy and Income Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 471-509, August.
    14. Balci, Mehmet & Kumral, Mustafa, 2022. "Building an innovation strategy and culture on the structural characteristics of the mining industries," Resources Policy, Elsevier, vol. 78(C).
    15. Thibeault, Al & Ryder, Michael & Tomomewo, Olusegun & Mann, Michael, 2023. "A review of competitive advantage theory applied to the global rare earth industry transition," Resources Policy, Elsevier, vol. 85(PA).
    16. Paulo N. Figueiredo & Janaina Piana, 2021. "Technological learning strategies and technology upgrading intensity in the mining industry: evidence from Brazil," The Journal of Technology Transfer, Springer, vol. 46(3), pages 629-659, June.
    17. Ediriweera, Amali & Wiewiora, Anna, 2021. "Barriers and enablers of technology adoption in the mining industry," Resources Policy, Elsevier, vol. 73(C).
    18. Obaya, Martín & López, Andrés & Pascuini, Paulo, 2021. "Curb your enthusiasm. Challenges to the development of lithium-based linkages in Argentina," Resources Policy, Elsevier, vol. 70(C).
    19. Atienza, Miguel & Modrego, Félix, 2019. "The spatially asymmetric evolution of mining services suppliers during the expansion and contraction phases of the copper super-cycle in Chile," Resources Policy, Elsevier, vol. 61(C), pages 77-87.
    20. Beatriz Calzada Olvera, 2022. "Innovation in mining: what are the challenges and opportunities along the value chain for Latin American suppliers?," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 35(1), pages 35-51, March.
    21. Maria Savona & Filippo Bontadini, 2023. "Revisiting the Natural Resource Curse: Backward Linkages for Export Diversification and Structural Economic Transformation," Development and Change, International Institute of Social Studies, vol. 54(2), pages 378-421, March.
    22. Lin, Wanlin & Wang, Peng & Yuan, Minjun, 2023. "Governing the knowledge commons: Hybrid relational–contractual governance in china’s mining industry," World Development, Elsevier, vol. 172(C).
    23. Gruenhagen, Jan Henrik & Parker, Rachel, 2020. "Factors driving or impeding the diffusion and adoption of innovation in mining: A systematic review of the literature," Resources Policy, Elsevier, vol. 65(C).
    24. Weimer, Lucas & Braun, Tobias & Hemdt, Ansgar vom, 2019. "Design of a systematic value chain for lithium-ion batteries from the raw material perspective," Resources Policy, Elsevier, vol. 64(C).
    25. Zauresh Atakhanova, 2021. "Support services in the extractive industries and the role of innovation," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(1), pages 141-150, April.

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    More about this item

    Keywords

    O13; O32; O43; Global value chains; Natural resources; Mining; Latin America; Innovation and learning; Governance;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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