Contrasting with most studies about innovation in Argentinean firms, which have focused on the destruction of capabilities after the several crises faced by the country after the 1970s, this chapter investigates the resurgence of innovative capabilities in Argentinean manufacturing firms since the early 1990s. Based on comprehensive innovation surveys covering the period 1992–2001, it is found that that most innovative firms in the country are concentrated in two types of sectors: (a) directed related to natural resources (downstream processing) (e.g. vegetable oils) and (b) indirectly related to natural resources (upstream inputs) (e.g. agricultural machinery). Contradicting the more widespread view in the region, which identifies natural resource activities as less dynamic, we find that firms in these sectors evolved over the period analyzed toward increasing levels of innovative activity, including R&D, skills, investments in capital goods, etc.
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