—Many developing countries have defined
successful catching-up strategies based on knowledge and
capabilities upgrading. However, this is a path dependent
country-specific process that may turn more complex in
economies based on natural resources (NR). This paper adopts
a knowledge-based economy approach to analyze the key
dimensions of catching up applied to the Chilean experience.
Results allow us to identify development drivers and to derive
policy implications that can be generalized to other catching-up
economies. The main contribution is to show how openness and
some physical production factors become basic determinants of
convergence for NR-based countries due to foreign technologies
and knowledge absorption opportunities, while national
innovation capabilities and the unequal income distribution are
still serious weaknesses.
—Catching-up, Chile, development, innovation,
I. Alvarez is with the Facultad de Económicas & Instituto Complutense
de Estudios Internacionales, Universidad Complutense de Madrid, Spain
R. Labra is with the Instituto Complutense de Estudios Internacionales,
Universidad Complutense de Madrid, Spain and Institute of Agricultural
Research, Chile (e-mail: email@example.com).
Cite: Isabel Álvarez and Romilio Labra, "Technology Gap and Catching up in Economies Based on
Natural Resources: The Case of Chile," Journal of Economics, Business and Management vol. 3, no. 6, pp. 619-627, 2015.