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The Role and Development of Technology-Intensive Suppliers in Resource-Based Economies: A Literature Review

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  • Carlos Torres Fuchslocher

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    (GIGA Institute of Latin American Studies)

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    Abstract

    Although primary industries are important to developing countries, they have been largely unable to contribute to rapid growth. Systematically strengthening the development of local technology-intensive suppliers (t-suppliers), however, may contribute to both reinforcing the industrial base and supporting the competitiveness of primary production. Indeed, the development of t-suppliers has been common in those resource-based economies which achieved a high level of development (Scandinavia, Canada, Australia). This paper explores the role of t-suppliers in natural resource-based economies. It outlines a theoretical framework for the analysis of the factors which foster or constrain their development and defines areas for an effective promotion of t-suppliers. The proposed model of analysis distinguishes between factors influencing the development of t-suppliers on the level of the main industry (MI), the level of supplier firms or firm-level and the level of external determinants with special reference to industrial policy factors.

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    Bibliographic Info

    Paper provided by GIGA German Institute of Global and Area Studies in its series GIGA Working Paper Series with number 60.

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    Length: 24 pages
    Date of creation: Nov 2007
    Date of revision:
    Handle: RePEc:gig:wpaper:60

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    Keywords: Technology-intensive suppliers; resource-based economies; developing countries; SME promotion; economic growth;

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    1. Kiminori Matsuyama, 1991. "Agricultural Productivity, Comparative Advantage and Economic Growth," NBER Working Papers 3606, National Bureau of Economic Research, Inc.
    2. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Natural Resource Abundance and Economic Growth," NBER Working Papers 5398, National Bureau of Economic Research, Inc.
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    7. R. Kaplinsky, 2000. "Globalisation and Unequalisation: What Can Be Learned from Value Chain Analysis?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 117-146.
    8. Maloney, William F., 2002. "Missed opportunities - innovation and resource-based growth in Latin America," Policy Research Working Paper Series 2935, The World Bank.
    9. Schmitz, Hubert & Nadvi, Khalid, 1999. "Clustering and Industrialization: Introduction," World Development, Elsevier, vol. 27(9), pages 1503-1514, September.
    10. Manuel Albaladejo, . "Determinants and Policies to Foster the Competitiveness of SME Clusters: Evidence from Latin America," QEH Working Papers qehwps71, Queen Elizabeth House, University of Oxford.
    11. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
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