Catching Up in the 21st Century: Globalization, Knowledge and Capabilities in Latin America, a Case for Natural Resource Based Activities

Abstract

The nature of the catching-up process has changed substantially at both the global and local levels over the last decade. The catching up process can no longer be disentangled from the rapid internationalization of science and technology and the globalization of innovation, in which the developing countries have an increasingly important role to play. In the first section, we focus on setting the global scene within which the catching up process operates today. In a second section we study the increasing complexity in the knowledge creation process caused by this dynamic interaction between the global and local levels. We then introduce the relevant types of capacities and explain why different capabilities are required in specific situations, times and locations. In section four, we place these theoretical discussions in a Latin American context to understand catching up opportunities from a regional perspective, focusing on activities based on natural resources.

Technology Gap and Catching up in Economies Based on Natural Resources: The Case of Chile

“…This combination of factors is coincident with the assumption that NR can lead development when intangible assets are also incorporated into the growth strategy. In fact, NR specialization positively affect the gap narrowing, a finding that find support in the related literature and evidence that point out that resources may successfully contribute to growth when natural and other traditional factors (capital and labor) are combined with strategic intangible assets, such as human capital, good institutions, and openness policies [28], [46], [31], [32].…”

“…However, the literature on NR also suggests that countries could face sustainable growth if they foster human capital, strengthen their institutions and invest in knowledge and technology [28], [31], [32].…”

The rise of the BRICS and resource nationalism: challenge and opportunity for Africa's innovation systems

“…The rise of the BRICS and resource nationalism: challenge and opportunity for Africa's innovation systems 375 that call for improvement in education, innovation, and natural resource management. Iizuka and Soete (2011) argue similarly. As wide experience attests, development of innovation systems commences with schooling and higher education: policies aimed at developing educational systems that provide quality education in general, but that are also focused on lifelong learning and training, are critical … to ensure that our workers can continuously upgrade how they produce … and is a prerequisite for the emergence of strong innovation systems (De Ferranti et al 2002, 3).…”

A dynamic multi-sector analysis of technological catch-up: The impact of technology cycle times, knowledge base complexity and variety

“…Since the 1980s, research efforts have focused on how firms, industrial sectors and newly industrialised countries can narrow the technological gap. Building on empirical evidence of technological catch-up (Abramovitz 1986;Kumar and Russell 2002), this research has exposed the increase in technological capacity in places like East Asia (Lee and Kim 2001;Mu and Lee 2005;Hu and Mathews 2005), Brazil (Figureido 2010Dantas and Bell 2011), Chile (Giuliani et al 2011;Iizuka and Soete 2013) and India (Awate et al 2012). A key insight from these studies is that a country's failure to catch up is due to a paucity of advanced skills and innovation capacity rather than a lack of natural resources or labour force.…”