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This chapter analyses how innovation in the mining sector responds to changes in commodity prices. For this purpose, the chapter combines commodity prices data with innovation data as captured by patent filings extracted from the WIPO database. Patents registered by both mining companies and mining equipment, technology and service firms (METS) are included. Findings from a multi-country panel analysis show that innovation in the mining sector is cyclical: it increases in periods of high commodity prices while decreasing during commodity price recessions. Innovations react more to long price-cycle variations if compared to shorter ones. METS seems the driving force of this mechanism. Mining countries, as opposed to METS ones, are found to be slower in reacting to price changes.
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