Abstract:
This paper challenges the often held view regarding the limits to
growth set by natural resource intensity by taking the case of Kerala
economy which despite being dominated by resource based sectors has
experienced revival since the latter part of 1980s. Focusing on natural
rubber - the largest resource based sector- wherein significant growth
dynamics was observed, the study highlights the role of a vibrant
innovation system which facilitated learning, innovation and
competence building of different stakeholders especially the small
holders and plantation labourers. In the earlier years, the innovation
system appears to be more in tune with the narrow approach to
innovation resulting in high yielding clones. However, in the context
of new challenges under globalization, the system appears to have
adapted itself not only by undertaking technological innovations (in
the form of new clones) but going beyond the sphere of technology and
clone development. This is manifested inter alia in the new
organizational innovations like RPSs, labour banks along with other
initiatives for interactive learning and competence building of different
stakeholders. Sustaining the gains of the innovation system in natural
rubber, however, would depend to a great extent on the presence of
internationally competitive rubber-based industrial sector. But in the
absence of a strong innovation and competence building system, the
rubber based industrial sector is shown to be in distress in the event of
heightened import competition under globalization. The study,
therefore, makes the case for appropriate institutional innovations to
facilitate the evolution of an innovative and knowledge driven rubberbased
industrial sector.
