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- Topics
- Horizontal Linkages (Beyond Extractives)
- Assessing the Potential to Create Increased Economic Links
- Adapting Supplier Capabilities to Other Sectors
Adapting Supplier Capabilities to Other Sectors
At a Glance
- Once the supply of capabilities is identified, demand can be determined by considering which nonextractive economic sectors could stand to benefit.
- Assessing which nonextractive sectors could best make use of these capabilities involves significant, context specific research and consultation.
- Well-connected goods use similar institutions, infrastructure, physical factors, and technology and are therefore likely to offer more opportunities for horizontal linkages than poorly connected goods.
Key Resources
- The Product Space Conditions the Development of Nations (Barabasi, Hausmann, Hidalgo, Klinger)
- Operationalizing the Product Space: A Roadmap to Export Diversification (Piergiuseppe Fortunato, Carlos Razo, Kasper Vrolijk)
- The Observatory of Economic Complexity (The Massachusetts Institute of Technology Media Lab Macro Connections Group)
Topic Briefing
The supply of transferrable skills and adaptable capabilities is determined by assessing the depth of backward and forward linkages. The demand can be determined by assessing which nonextractive economic sectors could benefit from capabilities developed in the extractive sector. Demand is country and context specific, and requires significant research and consultation to be understood. Assessing this demand will require close coordination with and among relevant ministries, including labor, education, and industry, to create a baseline analysis of the capabilities of the local economy.