Entering GVC Commodity-Based Industry Through Design and Engineering: Comparing Brazilian and Algerian Experiences

Abdelkader Djeflat
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Abdelkader Djeflat: DIM – Maghtech – Clersé -CNRS 8019 University of Lille

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 6, 1759-1776

Abstract: Natural Resources (NR) sectors in African economies have been crowding out manufacturing and domestic capacities in Design and engineering (D&E) still in their infancy stage but with important growth potential in most manufacturing activities. As a core component of the innovation capacity building process, D&E capacity is a crucial driver of industrial and economic development (Bell 2007). While the strategy is to move up the value chain and develop backward and forward linkages to the commodity sector seems within the possibilities of oil corporations, the manufacturing of industrial equipment needed for the sector has shown serious limitations. The chances to enter Global Value chains in NR-based industries seems remote for African oil Corporations making their Transformation of the industrial sector nearly impossible. This contribution examines first how the weakD&E capabilities resulted in major difficulties entering the GVC of NR equipment manufacturing. The aim to establish possible theoretical and conceptual linkages between all three components NR, D&E capacity building and GVC. A comparative study is made between the successful penetration of the giant Brazilian Corporation Petrobras and the oil company Sonatrach in Algeria and lessons drawn. A sample of companies is investigated in Core and non-core activities of the oil sector.

Date: 2024
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