The possible dynamic role of natural resource-based networks

ANABEL MARIN; LIZBETH NAVAZ ALEMAN; CARLOTA PEREZ

Buenos Aires

Congreso; AEDA II Congreso Anual 2010; 2010

AEDA

This paper explores the potential of natural-resource (NR) based networks for serving as platform for development strategies. The main argument against such potential use is the claim that they have low technological dynamism. If that were the case, natural resources would indeed be incapable of serving as core of a development effort. The paper holds that the changes induced by the ICT paradigm in the organisation of global corporations, the process of globalisation of production and the hyper-segmentation of markets have profoundly modified the conditions in all sectors, including natural resources. It analyses the recent and prospective forces driving innovation towards the “decommoditisation” of the natural resources themselves as well as the conditions that are making it more likely to weave networks of innovation up and downstream as well as laterally from the natural resource base, constructing a production and innovation network, which is taken as the unit of analysis. Finally it looks at the conditions under which full advantage could be taken of this potential for both development and poverty alleviation strategies. The paper uses evidence from case studies to illustrate how some of these transformations are already taking place in Latin America.