Abstract
Resource-rich countries are increasingly aiming to benefit from technology and knowledge spillovers in their extractive industries. In order to enhance knowledge spillovers, host country governments require natural resources companies to hire and train local workers, to engage in supplier development programs, and to be active in cooperative research agreements with local partners. Based on the South African innovation survey, this paper shows that companies active in the natural resources sector will more likely introduce product or process innovations if they engage in cooperative research agreements with foreign customers or suppliers. Furthermore, compared to mining companies and downstream firms, mining suppliers are more likely to introduce product innovations that are new to the market. Furthermore, the absorptive capacity of firms, proxied by a firm's own investment in R&D is an important determinant of both product and process innovations by firms in the mining sector. Finally, firms with more skilled workers will more likely introduce new or significantly improved services.
| Original language | English |
|---|---|
| Pages (from-to) | 463-471 |
| Number of pages | 7 |
| Journal | Resources Policy |
| Volume | 62 |
| Issue number | August |
| DOIs | |
| Publication status | Published - 2019 |
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Keywords
- Extractive industries
- Foreign direct investment
- Mining R&D
- Multinational enterprises
- Spillovers
- Technology transfer
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FDI technology spillovers in the mining industry : Lessons from South Africa's mining sector. / Ghebrihiwet, Nahom.
In: Resources Policy, Vol. 62, No. August, 2019, p. 463-471.Research output: Contribution to Journal › Article › Academic › peer-review
TY - JOUR
T1 - FDI technology spillovers in the mining industry
T2 - Lessons from South Africa's mining sector
AU - Ghebrihiwet, Nahom
PY - 2019
Y1 - 2019
N2 - Resource-rich countries are increasingly aiming to benefit from technology and knowledge spillovers in their extractive industries. In order to enhance knowledge spillovers, host country governments require natural resources companies to hire and train local workers, to engage in supplier development programs, and to be active in cooperative research agreements with local partners. Based on the South African innovation survey, this paper shows that companies active in the natural resources sector will more likely introduce product or process innovations if they engage in cooperative research agreements with foreign customers or suppliers. Furthermore, compared to mining companies and downstream firms, mining suppliers are more likely to introduce product innovations that are new to the market. Furthermore, the absorptive capacity of firms, proxied by a firm's own investment in R&D is an important determinant of both product and process innovations by firms in the mining sector. Finally, firms with more skilled workers will more likely introduce new or significantly improved services.
AB - Resource-rich countries are increasingly aiming to benefit from technology and knowledge spillovers in their extractive industries. In order to enhance knowledge spillovers, host country governments require natural resources companies to hire and train local workers, to engage in supplier development programs, and to be active in cooperative research agreements with local partners. Based on the South African innovation survey, this paper shows that companies active in the natural resources sector will more likely introduce product or process innovations if they engage in cooperative research agreements with foreign customers or suppliers. Furthermore, compared to mining companies and downstream firms, mining suppliers are more likely to introduce product innovations that are new to the market. Furthermore, the absorptive capacity of firms, proxied by a firm's own investment in R&D is an important determinant of both product and process innovations by firms in the mining sector. Finally, firms with more skilled workers will more likely introduce new or significantly improved services.
KW - Extractive industries
KW - Foreign direct investment
KW - Mining R&D
KW - Multinational enterprises
KW - Spillovers
KW - Technology transfer
UR - http://www.scopus.com/inward/record.url?scp=85045840488&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85045840488&partnerID=8YFLogxK
U2 - 10.1016/j.resourpol.2018.04.005
DO - 10.1016/j.resourpol.2018.04.005
M3 - Article
VL - 62
SP - 463
EP - 471
JO - Resources Policy
JF - Resources Policy
SN - 0301-4207
IS - August
ER -