Support services in the extractive industries and the role of innovation
Atakhanova Z.
April 2021Springer Science and Business Media Deutschland GmbH
Mineral Economics
2021#34Issue 1141 - 150 pp.
While representing a subset of all services outsourced by resource producers, support services account for 30% of employment in extractive industries in the OECD countries. Unlike mining and energy extraction, support services are the only subsector of the extractive industries where industrialized countries continue to dominate international trade. This suggests that despite producing 80% of the value of global output of extractive industries, emerging economies face difficulties in producing internationally competitive support services. As a result, we analyze the experience of industrialized countries and formulate policy implications for those emerging economies that aim at developing internationally competitive support services in extractive industries. By analyzing existing literature, historical data for the USA, and recent cross-country evidence, we conclude that support services are skill-intensive and benefit from the economy-wide innovation (as proxied by R&D spending). This implies that policy-makers in emerging economies should not only target innovation in the extractive industries but also likewise pursue long-term policies of building knowledge-based economies.
Innovation , Mining services , Oilfield services , R&D
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School of Mining and Geosciences, Nazarbayev University, Nur-Sultan, Kazakhstan
School of Mining and Geosciences
10 лет помогаем публиковать статьи Международный издатель
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