LA VISION The research project

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LA VISIONThe research project

• Anabel Marin

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The problem

• Heavy concentration of most LAC economies on
  production and exports that are directly based
  upon, or closely linked to, natural resource
  exploitation
• An structure typically associated with
• Low rates of economic growth,
• Low employment creation and associated patterns
  of high inequality,
• Cyclical economic instability and vulnerability
• Disadvantaged positions in global trade over long
  periods
• Risk of degradation of natural resources and
  natural environments
• Constrained ability to exploit the dynamic
  potential of innovation

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The problem

• Why? Two problems
• Demand structuralists/Prebisch in LAC Low
  elasticity of demand, low dynamism or growth
• Supply side NR based industries are usually
  thought to be
• Mature,
• Low tech,
• and therefore to offer low opportunities for
  innovation, diversification, and linkages
  (GROWTH).

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The problem

• Carlota is suggesting that some of these
  conditions might be changing
• Changes can be summarised in two types
• Changes on the demand side Increase and
  hyper-segmentation of markets, increases in
  elasticity
• Changes on the supply side
• Technology knowledge intensification,
  diversification, creation

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The project/s

• Promising, but up to know we have only very
  general indications about the real magnitude and
  characteristics of these changes
• Our project aims to improve our understanding of
• The extent to which opportunities for innovation
  and diversification are changing in NR related
  industries. How are these opportunities changing?
  
• What are the conditions under which these
  opportunities are changing?
• What is required in the policy arena to exploit
  these opportunities and possibilities?

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The project

• We are working on seven lines of research which
  will contribute to answering these questions
• The lines of research focus on
• Changes in the knowledge base in these industries
  (one)
• The role of different type of actors and networks
  (three)
• The role of specific institutions, policy and
  demand (three)

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The knowledge bases of NR based industries one
project Changing opportunities for innovation in
NR-related industries

• Starting point Opportunities for
  innovation/diversification are related to the
  magnitude and characteristics of the knowledge
  base of sectors
• NR based industries are typically considered low
  tech. However their status seems to be changing
• This project will explore
• The extent of changes in the knowledge base of NR
  related industries Patterns of knowledge
  intensification, sophistication and
  diversification
• The direction of these changes main scientific
  domains, actors, regions, and firms involved
• Association with innovation and diversification

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The role of specific key actors and networks
three projects 1) Firm-level innovation,
capabilities and the rate and direction of output
diversification

• Starting point Firms are at the centre of
  processes of knowledge intensification,
  innovation and diversification
• A lot of attention has been devoted to the
  association between firms capabilities/learning
  and innovation.
• The project will focus on the association between
  firm level capabilities/learning and
  diversification
• Specific capabilities associated with
  diversification
• Differences across sectors NRs/others
• What kinds of policy measure we need
• Outputs of the project might help to re-think the
  association between structure and innovation

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The role of specific key actors and networks
three projects 2) The role of MNC affiliates in
the technological dynamism and diversification of
NR-based sectors

• Starting point MNCs are key players in NRs based
  industries in LAC, and they are key players for
  innovation
• We know that in particular contexts/circumstances
  MNCs might have a positive or negative influence
  on knowledge intensification and diversification
  in host economies
• The project aims to explore
• The circumstances in which positive or negative
  effects might arise with respect to innovation.
  ..the role of different types of MNCs
  subsidiaries.
• How the activities of MNC affiliates influence
  the pattern of diversification away from directly
  NR-based activities.

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The role of specific key actors and networks two
projects 3) Knowledge intermediaries in
NR-centred values chains and clusters

• Starting point A significant part of NR-based
  production in LAC involves small agri-food and
  similar firms producing for global markets. The
  insertion of such firms in global markets calls
  for knowledge. Knowledge brokers and
  intermediaries might play a key role.
• The paper will examine
• The existence and emergence of knowledge
  intensive business service suppliers and other
  specialized firms and institutions in NR based
  industries in LAC
• How they shape the strategies of producers and
  their ability to transfer knowledge and bridge
  cognitive gaps.

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The role of demand, policy , and institutions
Three projects 1) The role of global value
chains (demand)

• Starting point A large proportion of NR-based
  production in LAC runs through value chains.
  These chains act as the main source of demand for
  this sector and they can act as significant
  constraints on upgrading and innovative activity
• The project aims to
• Identify the extent to which natural resource
  based industries in Latin America are operating
  in Global Value Chains
• Explore the challenges and opportunities these
  chains offer for the acquisition of different
  types of innovation capabilities
• Explore the association between innovation,
  industrial sector and mode of insertion
  (governance) in Global Value Chains.
• Identify the key challenges and policy issues

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Institutions, policy , and demand Three
projects2) The interaction between ICT
production and natural resource-based industries
alternative routes

• Starting point ICTs constitute an established
  set of generic or general purpose technologies
  that have had an enormous influence on the
  development of NR-linked industries
• There are two routes by which IT goods and
  services may emerge in association NR-based
  development capability deepening in the IT
  producing sector, or in the IT user industries
• The project will
• Review the available evidence about these two
  types of emergence of world class NR-related ICT
  production in Latin America, and other contexts
• Which kind of route has been followed in which
  areas? How? How effectively?

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Institutions, policy , and demand Three
projects3) Governance conditions and the
technological dynamism of NR-based global value
chains

• Starting point NR based industries exploit NRs,
  so one main challenge is to address
  sustainability issues in the exploitation of
  these resources
• Policy-relevant research is needed that can help
  decision-makers to address these challenges
• This project will explore three things.
• Appraisal how to evaluate risks/challenges
• Potential sustainable strategic interventions
  variety of interventions available and issues of
  adoption for each.
• Which kind of sustainable governance capacity is
  necessary

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• MANY THANKS!!