Uncovering Dynamics in the Accumulation of Technological Capabilities and Skills in the Mozambican Manufacturing Sector

Abstract:     
This paper examines the formation and accumulation of skills and technological capabilities in the Mozambican manufacturing sector. To this effect, it deploys Sanjaya Lall's technology capabilities conceptual and methodological framework to examine these issues for the Mozambican metalworking and light chemical sectors in the context of historical dynamics taking place in Mozambique in the economic and industrial policy spheres. This analysis shows that these two industries are experiencing a process of gradual technological obsolescence, combined with a progressive simplification of production processes that is leading to a weakening of their technology capability and skill base. In this context, neither foreign direct investment nor other mechanisms of technology transfer identified in the literature as contributing to the process of technological and skills accumulation, appear to have been able to reverse these trends. In light of available evidence on recent industrial (policy) developments, this paper argues that this process can be seen as a response to a deteriorating policy and economic environment that in the past two decades has undermined investments in industrial technology development in Mozambique.

Number of Pages in PDF File: 38

Keywords: Manufacturing, Technology Capabilities, Skills, Industrial Policy, Sub-Saharan Africa, Mozambique

JEL Classification: L50, L60, O12, O14, O30, O38

working papers series