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Missed Opportunities: Innovation and Resource-Based Growth in Latin America

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  • William F. Maloney

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Abstract

Latin America missed opportunities for rapid resource-based growth that similarly endowed countries-Australia, Canada, Scandinavia- were able to take advantage of. Fundamental to this poor performance was deficient technological adoption driven by two factors. First, deficient national "learning" or "innovative" capacity, arising from low investment in human capital and scientific infrastructure, led to weak ability to innovate or even take advantage of technologicaladvances abroad. Second, the period of inward-looking industrialization discouraged innovation and created a sector whose growth depended on artificial monopoly rents rather than the quasi-rents arising from technological adoption, and at the same time undermined resource-intensive sectors that had the potential for dynamic growth.

Suggested Citation

  • William F. Maloney, 2002. "Missed Opportunities: Innovation and Resource-Based Growth in Latin America," ECONOMIA JOURNAL, THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION - LACEA, vol. 0(Fall 2002), pages 111-168, August.
  • Handle: RePEc:col:000425:008688
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    References listed on IDEAS

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    Cited by:

    1. Howitt, Peter & Mayer-Foulkes, David, 2005. "R&D, Implementation, and Stagnation: A Schumpeterian Theory of Convergence Clubs," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 37(1), pages 147-177, February.
    2. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Cursed by Resources or Institutions?," The World Economy, Wiley Blackwell, vol. 29(8), pages 1117-1131, August.
    3. Torres-Fuchslocher, Carlos, 2010. "Understanding the development of technology-intensive suppliers in resource-based developing economies," Research Policy, Elsevier, vol. 39(2), pages 268-277, March.
    4. Walker, M.I. & Minnitt, R.C.A., 2006. "Understanding the dynamics and competitiveness of the South African minerals inputs cluster," Resources Policy, Elsevier, vol. 31(1), pages 12-26, March.
    5. Cappelen, Adne & Mjoset, Lars, 2009. "Can Norway Be a Role Model for Natural Resource Abundant Countries? Keywords: cross-section models, economic development, natural resources, resource booms," WIDER Working Paper Series 023, World Institute for Development Economic Research (UNU-WIDER).
    6. Edward Barbier & John Bugas, 2014. "Structural change, marginal land and economic development in Latin America and the Caribbean," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 23(1), pages 1-29, December.
    7. Perry, Guillermo & Maloney, William F., 2005. "Towards an efficient innovation policy in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    8. Jeroen Klomp & Jakob Haan, 2013. "Political Regime and Human Capital: A Cross-Country Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 111(1), pages 45-73, March.
    9. Hallward-Driemeier, Mary & Wallsten, Scott & Lixin Colin Xu, 2003. "The investment climate and the firm : firm-level evidence from China," Policy Research Working Paper Series 3003, The World Bank.
    10. Gerardo della Paolera & Xavier H. Duran Amorocho & Aldo Musacchio, 2018. "The Industrialization of South America Revisited: Evidence from Argentina, Brazil, Chile and Colombia, 1890-2010," NBER Working Papers 24345, National Bureau of Economic Research, Inc.
    11. Kuwayama, Mikio, 2009. "Quality of Latin American and Caribbean industrialization and integration into the global economy," Comercio Internacional 92, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    12. Carlos Torres Fuchslocher, 2007. "The Role and Development of Technology-Intensive Suppliers in Resource-Based Economies: A Literature Review," GIGA Working Paper Series 60, GIGA German Institute of Global and Area Studies.
    13. Lenin Balza & Osmel Manzano, 2011. "Productivity Spillover of Resource Exploitation: Evidence from Venezuelan Industrial Surveys," EcoMod2011 3262, EcoMod.
    14. Lederman, Daniel & Maloney, William F., 2003. "Trade structure and growth," Policy Research Working Paper Series 3025, The World Bank.

    More about this item

    Keywords

    resource-based growth; human capital; inward-looking;

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly

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