Although primary industries are important to developing countries, they have beenlargely unable to contribute to rapid growth. Systematically strengthening the developmentof local technology‐intensive suppliers (t‐suppliers), however, may contribute toboth reinforcing the industrial base and supporting the competitiveness of primary production.Indeed, the development of t‐suppliers has been common in those resource‐basedeconomies which achieved a high level of development (Scandinavia, Canada, Australia).This paper explores the role of t‐suppliers in natural resource‐based economies. It outlinesa theoretical framework for the analysis of the factors which foster or constrain their developmentand defines areas for an effective promotion of t‐suppliers. The proposedmodel of analysis distinguishes between factors influencing the development of t‐supplierson the level of the main industry (MI), the level of supplier firms or firm‐level andthe level of external determinants with special reference to industrial policy factors.
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