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Towards a new approach to natural resources and development: the role of learning, innovation and linkage dynamics

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  • Allan Dahl Andersen

Abstract

It is a stylised fact in economics that natural resources are harmful for economic development. Still, one can find several examples of natural-resource-based development. This apparent paradox reflects an unsatisfactory conceptualisation of natural resources. This paper suggests a new evolutionary-institutional approach to studying natural resources and their role in economic development with focus on learning and linkage dynamics. The paper reviews the literature with a focus on the underlying perception of natural resources as the key for understanding its shortcomings. Most approaches perceive natural resources as finite and exogenous to the economic system. These assumptions constitute the pillars of the law of diminishing returns which inter alia states that natural resources cannot lead development. Others argue that natural resources are endogenous to the economy and can develop important dynamic linkages. The paper elaborates on the latter and suggests that in order to understand the role of natural resources in economic development, they must be understood as dynamic, and as being subject to processes of natural resource creation, extension and obsolescing that are characterised by learning and capability building.

Suggested Citation

  • Allan Dahl Andersen, 2012. "Towards a new approach to natural resources and development: the role of learning, innovation and linkage dynamics," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 5(3), pages 291-324.
    • Handle: RePEc:ids:ijtlid:v:5:y:2012:i:3:p:291-324
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    Citations

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    Cited by:

    1. Iizuka, Michiko & Pietrobelli, Carlo & Vargas, Fernando, 2019. "The Potential for innovation in mining value chains. Evidence from Latin America," MERIT Working Papers 2019-033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Katz, Jorge & Pietrobelli, Carlo, 2018. "Natural resource based growth, global value chains and domestic capabilities in the mining industry," Resources Policy, Elsevier, vol. 58(C), pages 11-20.
    3. 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.
    4. Leitch, Aletta & Haley, Brendan & Hastings-Simon, Sara, 2019. "Can the oil and gas sector enable geothermal technologies? Socio-technical opportunities and complementarity failures in Alberta, Canada," Energy Policy, Elsevier, vol. 125(C), pages 384-395.
    5. Molina, Oswaldo, 2018. "Innovation in an unfavorable context: Local mining suppliers in Peru," Resources Policy, Elsevier, vol. 58(C), pages 34-48.
    6. 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.
    7. Luo, Jing & Ali, Syed Ahtsham & Aziz, Babar & Aljarba, Ahmed & Akeel, Hatem & Hanif, Imran, 2023. "Impact of natural resource rents and economic growth on environmental degradation in the context of COP-26: Evidence from low-income, middle-income, and high-income Asian countries," Resources Policy, Elsevier, vol. 80(C).
    8. 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).
    9. 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.
    10. Anser, Muhammad Khalid & Yousaf, Zahid & Nassani, Abdelmohsen A. & Vo, Xuan Vinh & Zaman, Khalid, 2020. "Evaluating ‘natural resource curse’ hypothesis under sustainable information technologies: A case study of Saudi Arabia," Resources Policy, Elsevier, vol. 68(C).
    11. Anabel Marin & Lizbeth Navas-Alemán & Carlota Perez, 2015. "Natural Resource Industries As a Platform for the Development of Knowledge Intensive Industries," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 106(2), pages 154-168, April.

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