Columbia International Affairs Online
CIAO DATE: 12/5/2007
The Role and Development of Technology-Intensive Suppliers in Resource-Based Economies: A Literature Review
November 2007
German Institute of Global and Area Studies
Abstract
Although primary industries are important to developing countries, they have been largely unable to contribute to rapid growth. Systematically strengthening the development of local technology‐intensive suppliers (t‐suppliers), however, may contribute to both reinforcing the industrial base and supporting the competitiveness of primary production. Indeed, the development of t‐suppliers has been common in those resource‐based economies which achieved a high level of development (Scandinavia, Canada, Australia). This paper explores the role of t‐suppliers in natural resource‐based economies. It outlines a theoretical framework for the analysis of the factors which foster or constrain their development and defines areas for an effective promotion of t‐suppliers. The proposed model of analysis distinguishes between factors influencing the development of t‐suppliers on the level of the main industry (MI), the level of supplier firms or firm‐level and the level of external determinants with special reference to industrial policy factors.
