One of the theoretical arguments for the detrimental effect of natural resources on the development of industrial sectors could be a byproduct of the capital accumulation process. Substitution of capital for labor in resource sectors slows down the development of highly-skilled labor force compared to the resource-poor economies. We provide empirical support to this argument. In a cross-country cross-industry study we show that highly-skilled labor intensive industrial sectors developed disproportionately slowly in resource-rich countries. Our findings emphasize the need for educational policies aimed at the development of highly-skilled labor force to ensure the sustainability of economic growth.