BYPASSING THE RESOURCE CURSE: Case of learning, innovation and competence building in natural rubber, Kerala, India

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.