Natural Resource Industries as a Platform for the Development of Knowledge Intensive Industries

In the innovation and development literature, natural resources (NR) are generally viewed as a curse for developing nations and NR-based industries as having little potential to innovate and drive long-term growth. This has led policy and development experts to opt for strategies to induce a shift in the pattern of specialization towards other sectors. This paper proposes a different approach. By exploring recent evidence from the Argentinean agricultural sector and the mining industry in Chile, it points to the window of opportunity that NR industries offer as a platform to develop knowledge intensive industries with which to support economic development in resource-endowed countries. The lessons drawn from these findings suggest that development strategies can also promote more innovative knowledge intensive NR-based industries rather than moving away from them.