THE PARADOX OF MINING SUPPLY SME COMPETITIVENESS IN CHILE: HIGH DEMAND AND LOW TECHNOLOGICAL DEVELOPMENT AND INNOVATION

The high profit level reached by the copper industry in Chile after 2000 has not been reflected in the earnings of the small and medium enterprises (SMEs) that supply the mining cluster of Chile. Several authors hold that the poor technological development of these SMEs is the cause of their low competitiveness level, which is below their potential. The aim of this article is to generate an index that measures the level of competitiveness, sustained in the three pillars (technological development, innovation and business processes sophistication) of the SMEs that belong to the mining cluster of Chile. The methodology used was adapted front Desai et al. (2002). The measuring instrument was applied to a sample of 107 SMEs in the region of Antofagasta, Chile. The results show that the values obtained by, the SMEs of the Chilean mining cluster and the ones front the nations participating in the Global Competitiveness Report are similar. The strong correlation between innovation and technological development, between business processes sophistication with technological development is highlighted.