Asekho Mqoqi, Rendani Mamphiswana, Petrus Letaba
Abstract
Innovation is understood to be the prerequisite for ensuring competitiveness, progress and, sustainable economic growth. The South African mining sector’s value has stagnated and declined owing to its lack of competitiveness in the global market. The country, once known for leading in mining production, is now ranked fifth and is being led by China. The current leading gold producer is also said to be the largest investor in research and development (R&D), which suggests that it aims to sustain its competitive advantage. However, adoption of emerging technologies is still not yielding the expected productivity outcomes. Therefore, this study sought to investigate the relationship between mining innovation, using proxies, and mining sector performance. To measure the innovation performance, patents and R&D expenditure were employed as proxies. This research data was collected from secondary data sources. The mining performance data was gathered in terms of gross domestic product (GDP), production values, and various company financials. The outcome of the study presented an unexpected lack of relationship between the innovation proxies and production output. This research contributes to the strategic planning of mining innovation, particularly in low innovation intensity regions. Based on these findings, it is recommended that local research and development capacity should be prioritised to minimise technology import.