Innovation and Competitiveness in the Copper Mining GVC: Developing Local Suppliers in Peru

Penny Bamber, Karina Fernandez-Stark and Oswaldo Molina
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Penny Bamber: Duke Global Value Chains Center
Karina Fernandez-Stark: Duke Global Value Chains Center

No 183, Working Papers from Peruvian Economic Association

Abstract: Although Peru is one of the main producers of copper worldwide, the domestic industry has not yet taken fully advantage of the potential that the exploitation of this commodity offers. This paper explores the opportunities and challenges that Peruvian supplier face in their insertion into the mining global value chain. Our analysis is based on a mixed-methods approach, combining both quantitative and qualitative primary and secondary sources, including semi-structured interviews with key actors of the Peruvian mining sector. Our findings suggest that the weak presence of Peruvian suppliers in a sector dominated by few foreign firms is due to global industry dynamics as well as the underdeveloped capabilities of local firms operating in a fragile local institutional setting. However, opportunities for their insertion are primarily in areas where new solutions are required, which places a demand on the supplier’s innovative capacity.

Keywords: Mining; Peru; Copper; Global Value Chain, Innovation, Local Suppliers (search for similar items in EconPapers)
Date: 2022-07
New Economics Papers: this item is included in nep-cse and nep-int
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Journal Article: Innovation and competitiveness in the copper-mining GVC: developing local suppliers in Peru (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:apc:wpaper:183

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