The role and development of technology-intensive suppliers in resource-based economies : a literature review

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. -- Technology-intensive suppliers ; resource-based economies ; developing countries ; SME promotion ; economic growth