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

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  • William F. Maloney

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," Economía 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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    More about this item

    Keywords

    resource-based growth; human capital; inward-looking;
    All these keywords.

    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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