IDEAS home Printed from https://ideas.repec.org/a/spr/minecn/v34y2021i1d10.1007_s13563-020-00239-y.html
   My bibliography  Save this article

Support services in the extractive industries and the role of innovation

Author

Listed:
  • Zauresh Atakhanova

    (Nazarbayev University)

Abstract

While representing a subset of all services outsourced by resource producers, support services account for 30% of employment in extractive industries in the OECD countries. Unlike mining and energy extraction, support services are the only subsector of the extractive industries where industrialized countries continue to dominate international trade. This suggests that despite producing 80% of the value of global output of extractive industries, emerging economies face difficulties in producing internationally competitive support services. As a result, we analyze the experience of industrialized countries and formulate policy implications for those emerging economies that aim at developing internationally competitive support services in extractive industries. By analyzing existing literature, historical data for the USA, and recent cross-country evidence, we conclude that support services are skill-intensive and benefit from the economy-wide innovation (as proxied by R&D spending). This implies that policy-makers in emerging economies should not only target innovation in the extractive industries but also likewise pursue long-term policies of building knowledge-based economies.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:minecn:v:34:y:2021:i:1:d:10.1007_s13563-020-00239-y
    DOI: 10.1007/s13563-020-00239-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13563-020-00239-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13563-020-00239-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ghebrihiwet, Nahom, 2019. "FDI technology spillovers in the mining industry: Lessons from South Africa's mining sector," Resources Policy, Elsevier, vol. 62(C), pages 463-471.
    2. Alyson Warhurst & Gavin Bridge, 1997. "Economic liberalisation, innovation, and technology transfer: opportunities for cleaner production in the minerals industry," Natural Resources Forum, Blackwell Publishing, vol. 21(1), pages 1-12, February.
    3. Jacques Mairesse & Pierre Mohnen, 2005. "The Importance of R&D for Innovation: A Reassessment Using French Survey Data," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 183-197, January.
    4. Mario Cimoli & Nelson Correa, 2002. "Trade Openess and Technological Gaps in Latin America: a Low Growth Trap," LEM Papers Series 2002/14, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. Beñat Bilbao‐Osorio & Andrés Rodríguez‐Pose, 2004. "From R&D to Innovation and Economic Growth in the EU," Growth and Change, Wiley Blackwell, vol. 35(4), pages 434-455, September.
    6. Jan Fagerberg & David C Mowery & Bart Verspagen, 2009. "The evolution of Norway's national innovation system," Science and Public Policy, Oxford University Press, vol. 36(6), pages 431-444, July.
    7. Mary Amiti & Shang-Jin Wei, 2005. "Service Offshoring, Productivity, and Employment: Evidence from the United States," IMF Working Papers 2005/238, International Monetary Fund.
    8. Silvana Tordo & Michael Warner & Osmel E. Manzano & Yahya Anouti, 2013. "Local Content in the Oil and Gas Sector," World Bank Publications - Books, The World Bank Group, number 15930, December.
    9. Bartos, Paul J., 2007. "Is mining a high-tech industry: Investigations into innovation and productivity advance," Resources Policy, Elsevier, vol. 32(4), pages 149-158, December.
    10. Magnus Ericsson & Olof Löf, 2019. "Mining’s contribution to national economies between 1996 and 2016," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 32(2), pages 223-250, July.
    11. Mila Davids & Sue-Yen Tjong Tjin Tai, 2009. "Absorptive capacity, knowledge circulation and coal cleaning innovation: The Netherlands in the 1930s," Business History, Taylor & Francis Journals, vol. 51(5), pages 668-690.
    12. William B. Beyers & David P. Lindahl, 1996. "Explaining The Demand For Producer Services: Is Cost‐Driven Externalization The Major Factor?," Papers in Regional Science, Wiley Blackwell, vol. 75(3), pages 351-374, July.
    13. World Bank, 2011. "The Changing Wealth of Nations : Measuring Sustainable Development in the New Millennium," World Bank Publications - Books, The World Bank Group, number 2252, December.
    14. David Humphreys, 2020. "Mining productivity and the fourth industrial revolution," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 33(1), pages 115-125, July.
    15. Stubrin, Lilia, 2018. "Reprint of: Innovation, learning and competence building in the mining industry. The case of knowledge intensive mining suppliers (KIMS) in Chile," Resources Policy, Elsevier, vol. 58(C), pages 62-70.
    16. Sam Mitra, 2019. "Depletion, technology, and productivity growth in the metallic minerals industry," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 32(1), pages 19-37, April.
    17. Mancini, Lorenzo & Paz, María José, 2018. "Oil sector and technological development: Effects of the mandatory research and development (R&D) investment clause on oil companies in Brazil," Resources Policy, Elsevier, vol. 58(C), pages 131-143.
    18. Dale W. Jorgenson & Mun S. Ho & Jon D. Samuels, 2016. "Education, Participation, and the Revival of U.S. Economic Growth," NBER Working Papers 22453, National Bureau of Economic Research, Inc.
    19. Upstill, Garrett & Hall, Peter, 2006. "Innovation in the minerals industry: Australia in a global context," Resources Policy, Elsevier, vol. 31(3), pages 137-145, September.
    20. Gana, Juanita, 1992. "Determinants of innovation in copper mining: the Chilean experience," Resources Policy, Elsevier, vol. 18(1), pages 21-31, March.
    21. Zauresh Atakhanova & Peter Howie, 2020. "Metal intensity of use in the era of global value chains," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 33(1), pages 101-113, July.
    22. David, Paul A & Wright, Gavin, 1997. "Increasing Returns and the Genesis of American Resource Abundance," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(2), pages 203-245, March.
    23. Filippou, Dimitrios & King, Michael G., 2011. "R&D prospects in the mining and metals industry," Resources Policy, Elsevier, vol. 36(3), pages 276-284, September.
    24. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zauresh Atakhanova, 2021. "Kazakhstan’s oil boom, diversification strategies, and the service sector," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(3), pages 399-409, October.
    2. Muhirwa, Fabien & Shen, Lei & Elshkaki, Ayman & Hirwa, Hubert & Umuziranenge, Gloriose & Velempini, Kgosietsile, 2023. "Linking large extractive industries to sustainable development of rural communities at mining sites in Africa: Challenges and pathways," Resources Policy, Elsevier, vol. 81(C).
    3. Yamashita, Andre S. & Fujii, Hidemichi, 2022. "Trend and priority change of climate change mitigation technology in the global mining sector," Resources Policy, Elsevier, vol. 78(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Ediriweera, Amali & Wiewiora, Anna, 2021. "Barriers and enablers of technology adoption in the mining industry," Resources Policy, Elsevier, vol. 73(C).
    3. 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).
    4. 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.
    5. MahdaviMazdeh, Hossein & Saunders, Chad & Hawkins, Richard William & Dewald, Jim, 2021. "Reconsidering the dynamics of innovation in the natural resource industries," Resources Policy, Elsevier, vol. 72(C).
    6. Stubrin, Lilia, 2017. "Innovation, learning and competence building in the mining industry. The case of knowledge intensive mining suppliers (KIMS) in Chile," Resources Policy, Elsevier, vol. 54(C), pages 167-175.
    7. Iizuka, Michiko & Vargas, Fernando & Baumann, Jakob, 2017. "Financial mechanism to invest in knowledge from natural resource revenues: Experiences from Bolivia, Chile, Colombia and Peru," MERIT Working Papers 2017-042, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. 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).
    9. Zauresh Atakhanova, 2021. "Kazakhstan’s oil boom, diversification strategies, and the service sector," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(3), pages 399-409, October.
    10. Ghassim, Babak & Foss, Lene, 2021. "Understanding the micro-foundations of internal capabilities for open innovation in the minerals industry: a holistic sustainability perspective," Resources Policy, Elsevier, vol. 74(C).
    11. Mugebe, P. & Kizil, M.S. & Yahyaei, M. & Low, R., 2023. "Foundation of a framework for evaluating the impact of mining technological innovation on a company's market value," Resources Policy, Elsevier, vol. 85(PA).
    12. Aldakhil, Abdullah Mohammed & Nassani, Abdelmohsen A. & Zaman, Khalid, 2020. "The role of technical cooperation grants in mineral resource extraction: Evidence from a panel of 12 abundant resource economies," Resources Policy, Elsevier, vol. 69(C).
    13. Zhu, Yongguang & Xu, Deyi & Ali, Saleem H. & Cheng, Jinhua, 2021. "A hybrid assessment model for mineral resource availability potentials," Resources Policy, Elsevier, vol. 74(C).
    14. Stubrin, Lilia, 2018. "Reprint of: Innovation, learning and competence building in the mining industry. The case of knowledge intensive mining suppliers (KIMS) in Chile," Resources Policy, Elsevier, vol. 58(C), pages 62-70.
    15. 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).
    16. Švarc, Jadranka & Dabić, Marina, 2021. "Transformative innovation policy or how to escape peripheral policy paradox in European research peripheral countries," Technology in Society, Elsevier, vol. 67(C).
    17. 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).
    18. Yıldız, Taşkın Deniz & Kural, Orhan, 2020. "The effects of the mining operation activities permit process on the mining sector in Turkey," Resources Policy, Elsevier, vol. 69(C).
    19. 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.
    20. Natina Yaduma, 2018. "Investigating the oil curse in OECD and Non-OECD oil-exporting economies using green measures of income," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(6), pages 2725-2745, December.

    More about this item

    Keywords

    R&D; Innovation; Mining services; Oilfield services;
    All these keywords.

    JEL classification:

    • L70 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:minecn:v:34:y:2021:i:1:d:10.1007_s13563-020-00239-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.