The types and intensity of innovation in developing country SMEs: evidences from a Nigerian subsectoral study
by A.A. Egbetokun; A.A. Adeniyi; W.O. Siyanbola; O.O. Olamade
International Journal of Learning and Intellectual Capital (IJLIC), Vol. 9, No. 1/2, 2012

Abstract: Understanding the types of innovations that SMEs currently undertake, and their commitment to innovation, is especially useful for policy making in developing countries. This paper, therefore, addressed two main questions: What types of innovation occur in SMEs? How intense is innovation in SMEs? We have used empirical information from a census carried out in the Nigerian cable and wire manufacturing industry. Questionnaire and interviews were the primary means of data collection and the data covered the four-year period between 2003 and 2007. We found a high prevalence of organisational innovation and low prevalence of diffusion-based innovation. Innovation intensity was low at 0.114% per capita training investment. Interestingly, our findings revealed that process and marketing innovation accompanied each other. We conclude that SMEs in developing countries are not innovation-inactive and that they would do better if industries are well organised and firms make higher investments in learning and capability build-up.

Online publication date: Tue, 02-Sep-2014

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