The mining sector: profit-seeking strategies, innovation patterns, and commodity prices

Innovation in the mining sector is crucial for industrial, economic, and sustainable development, particularly for developing economies. This study aims to understand the factors that stimulate innovation in the mining sector to enhance productivity and growth. We hypothesize two innovation responses to fluctuating commodity prices, which we analyze using recent literature and available industry data. Our findings reveal that as commodity prices rise, mining companies increase their investments in exploration and in-house research and development (R&D), while in contrast, when prices decrease, the utilization of suppliers’ innovations becomes more pronounced. To bolster the sector, it is vital to implement long-term policies that support the Mining Equipment, Technology and Services (METS) sector, empowering continuous R&D investments to yield innovative solutions for mining firms, while also exploring digital and low-carbon advancements applicable both within and outside the mining sector. This research contributes to filling the gap in understanding innovation dynamics specific to the mining industry, especially in the context of the resource curse and its impact on economic development.