Capability creation in the natural resource-based sector: experiences from Swedish mining

Abstract

ABSTRACTIn the political arena, natural resources activities – including mining – are generally viewed as low-tech and are not associated with the technological innovations that serve as the precursors of competition. In old industrialized nations, mining is limited to a few countries and mining-related activities are typically considered low-tech endeavours that rely on old and outdated technologies. In addition, mining districts are seen as lacking the prerequisites of economic development, such as an entrepreneurial spirit, knowledge formation mechanisms and diverse human capital formation. This paper discusses mining in the old industrialized nation of Sweden where mining is an important contributor to national competitiveness. Through a case study of two mines and the mining district, we argue that in order to understand the processes underlying the competitiveness of the natural resource-based sector, that is, mining sector in the context of a high-income nation, Sweden, it is important to dig deeper as regards mechanisms such as overall economic and institutional conditions as well as industrial adoptions of generic technologies, learning and upstream collaborations. The paper concludes with suggestions for further research and provides policy implications in the context of competence development.