Innovation process in overcoming of the natural resource deficit

Abstract

Shortening of available volumes of a natural resource can become an engine for the new technologies development, and these technologies would help using it more effectively or would allow substituting it with some other resource. In Israel state policy aiming to shortening of the demand for sweet water together with subsiding of new technologies which allow to produce sweet water and to substitute it, led to a new phenomena. Technologies that evolved appeared to be skill-biased and water-replacing, which because of special properties of the substitute resource (intellectual resource) leads to economic development of the country.